Half-year Report

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN EUROPEAN INVESTMENT TRUST PLC

UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS ENDED30TH SEPTEMBER 2020

Legal Entity Identifier: 549300D8SPJFHBDGXS57

Information disclosed in accordance with DTR 4.1.

CHAIRMAN'S STATEMENT

Introduction

During this reporting period central banks have injected unprecedented amounts of economic stimulus into the world's economies in an effort to avoid a global economic depression following the start of the Covid-19 pandemic. This unparalleled level of government spending resulted in an unexpectedly strong rally in equities during April 2020 and supported market confidence. Equity markets remained relatively buoyant throughout the reporting period, although not uniformly so. Many internet and technology growth stocks hit record highs, but most value stocks remained in the doldrums.

The Company's operations, control environment and working practices have adapted well to the changing environment that the Covid-19 pandemic has created. Despite the continuing headwinds that the Company faces in achieving the objectives set out for each of the share classes, its results in this period have improved and the Company continues to maintain the dividends paid on its Income shares, as can be seen below.

Performance

The Benchmark return for both share classes is the MSCI Europe ex UK Index in sterling terms and for the six months under review was 19.5%. See the comments below and the Investment Managers Report for further details of the Company's performance in the period.

Growth Portfolio

Return to shareholders and return on net assets

The total return to shareholders for the Company's Growth shares was 25.7%. This measurement of performance takes into account share price movements and income received by way of dividend.

The total return on net assets for the Company's Growth shares was 23.9%. (debt at fair value) 23.4% (debt at par). The Growth portfolio outperformed the benchmark by 4.4 percentage points on a net asset basis (debt at fair value).

Dividends

For the Company's Growth shares, the amount of the growth share dividend reflects the amount of revenue available for distribution. In the period the first interim dividend per Growth share of 1.25 pence (2019: 4.85 pence) in respect of the Company's 31st March 2021 year end was paid on 16th October 2020. Revenue return per share on the Growth portfolio for the six months to 30th September 2020 (calculated by reference to the average number of shares in issue over the period) amounted to 5.80 pence per share (2019: 6.97 pence per share).

Income Portfolio

Return to shareholders and return on net assets

The total return to shareholders for the Company's Income shares was 19.0%.

The total return on net assets for the Company's Income shares was 17.2% (debt at fair value) 16.6% (debt at par).

The Income portfolio underperformed the benchmark by 2.3 percentage points on a net asset basis (debt at fair value) hampered by the continuing poor performance of the Income style following the market's initial shock reaction to both dividend cuts and deferral's made by companies following the Covid-19 pandemic.

Dividends

For the Company's Income shares, the Board's aim is to provide a regular stream of dividend income on a quarterly basis, subject to the availability of distributable reserves. The first interim dividend of 1.40 pence per share (2019: 1.40 pence per share) in respect of the Company's 31st March 2021 year end was paid on 31st July 2020 and a second interim dividend also of 1.40 pence per share (2019: 1.40 pence per share) was paid on 16th October 2020. A third interim dividend of 1.40 pence per share (2019: 1.40 pence per share) was declared on 19th November 2020 for payment on 8th January 2021. Despite the decline in current year revenues due to the Covid-19 market turmoil, the Company has been able to maintain the current year dividends declared and paid to date at the same level as the previous year by utilising its brought forward revenue reserves.

Revenue return per share on the Income portfolio for the six months (again, calculated by reference to the average number of shares in issue over the period) amounted to 3.95 pence per share (2019: 4.95 pence per share).

Gearing

There has been no change in the Investment Manager's permitted gearing range, as previously set by the Board, of between 10% net cash to 20% geared. At 30th September 2020 the Growth portfolio's gearing had increased to 0.4% and the Income portfolio's had decreased to 3.6%. These levels of gearing as quoted in this Half Year Report and Financial Statements are before the application of derivatives, such as futures, which can be used by the Investment Managers to either increase or decrease the effective rate of the Company's gearing, according to market conditions. The Company's net gearing including derivatives is included with the Company's daily published net asset value.

Conversions

Annually, the shareholders in either of the two Company's share classes are able to convert some or all of their shares into shares of the other class without such disposal being treated as a disposal for capital gains purposes.

The Company's next annual share conversion will be on 15th March 2021 and details of the process will be posted on the Company's website in late January 2021.

Discounts, Share Issuance and Repurchase

The Board remains of the view that it is important to seek to address imbalances in the supply of and demand for the Company's shares and to thereby minimise the volatility and absolute level of the discount to net asset value at which the Company's shares currently trade. The Board does not wish to see the discounts widen beyond 10% under normal market conditions (using the cum-income NAV) on an ongoing basis. The precise level and timing of repurchases pursuant to this policy depend upon prevailing market conditions. Over the six months under review the discount levels have averaged 14.3% for the Growth shares and 14.2% for the Income Shares (both at fair value and on a cum-income NAV basis). The discount at which the Growth shares were trading below the prevailing net asset value decreased during the period but still remained high, reflecting continuing negative market sentiment towards Europe.

Board of Directors

As referred to in the Company's Annual Report Year Report and Financial Statements, the expectation is that Stephen Russell and Stephen Goldman will be standing down as Directors of the Company in the forthcoming year. An independent search agency has been engaged to seek suitable replacements in accordance with the Company's board succession plan. .

Investment Managers

The Board announced changes to the Company's Investment Management team on 19th October 2020. It was detailed that Stephen Macklow-Smith would be retiring and new co-managers will be joining the team. With effect from 31st October 2020, Matt Jones joined Michael Barakos and Thomas Buckingham as co-manager of the Income portfolio and Alexander Fitzalan Howard will be joined by Zenah Shuhaiber and Timothy Lewis as co-managers of the Growth portfolio.

The Board would like to thank Stephen Macklow-Smith for his long-standing contribution to the management of the Company and it looks forward to working with the existing portfolio management team and welcomes the new co-managers.

Transfer of Reserves between the Growth and Income Portfolios

As in the previous year, the Board has exercised its power to approve transfers of retained revenue reserves from JETG to JETI in exchange for the equivalent amount of capital reserves from JETI to JETG. £27,335 was transferred to JETI in exchange for the equivalent amount of capital reserves from JETI to JETG, being the amount of JETG's retained revenue reserve as at 31st March 2020, after payment on 3rd April 2020 of the JETG 4.00p dividend. This transfer is reflected in this Half Year Report and Financial Statements.

Outlook

The scale and longevity of the unprecedented disruption to the global economy caused by the Covid-19 pandemic remains uncertain, however the recent positive developments regarding the availability of a vaccine in the coming months was greeted with sharp rises in equity markets across the globe and offers some hope for an end to the crisis.

Markets also responded positively to the win by the Democratic candidate, Joe Biden, in the US Presidential elections in early November an expectation that this will lead to an easing of trade tensions with China. Uncertainty continues around the implications of Brexit.

Whilst we are in unchartered waters there remain significant investment opportunities in Europe and we support the manager's approach to address those in achieving our long term objectives.

For and on behalf of the Board

Josephine Dixon

Chairman 24th November 2020

INVESTMENT MANAGERS' REPORT

Market background

The Company's half year to 30th September 2020 saw equity markets in Continental Europe recover sharply from the steep sell off in February/March which was caused by the Covid-19 pandemic and subsequent lockdown. Despite the enormous and deeply damaging economic downturn global markets bounced back strongly in the second calendar quarter. Still scarred by the 2008-9 financial crisis both central banks and politicians reacted quickly to ensure that there was no repeat of the systemic threat to the financial system and that huge fiscal programs would protect incomes and jobs, at least in the short term. This proved hugely supportive for risk assets. Nevertheless there remained a disconnect between the economic reality on the ground and financial markets. The old adage about markets climbing a wall of worry seemed very apt.

In the second half of the period under review the equity market traded sideways as the initial recovery in economies started to moderate. For example the Eurozone's flash Purchasing Manager's Index (PMI) rose to a 25-month high of 54.8 for the month of July before edging down over the next two months. Even the outright bulls had to concede that a V shaped recovery was unlikely and concerns mounted about a second wave of the virus in the winter, the outcome of the US election and whether there would be a Brexit trade deal before the end of the year.

JETG Portfolio

The portfolio outperformed its benchmark index by 3.9 percentage points in the six months under review. In the initial sell off we reduced the gearing in the portfolio and turned more defensive particularly by increasing exposure to the pharmaceutical sector and cutting some of the more obvious casualties such as travel related companies. However since then we have started to build positions in companies that are more exposed to any recovery such as capital goods and auto manufacturers. In order to fund this we have reduced holdings in the pharmaceutical and consumer staple sectors which had helped to protect the portfolio in the downturn.

JETI Portfolio

The portfolio underperformed its benchmark index by 2.8 percentage points as high yielding stocks remained firmly out of favour. Not only was the portfolio overexposed to traditional yield sectors such as financials and energy and underexposed to growth sectors such as technology but the problem was magnified by many companies being forced, either by economic circumstance or regulation, to cancel, or at least defer, their dividend payments. While significant steps were taken to mitigate the damage it has been a painful period for the portfolio.

Outlook

The combination of a second Covid-19 wave leading to another round of lockdowns across Europe, a faltering recovery which means that the outlook for corporate earnings remains unclear, and political concerns around the outcome of the Brexit negotiations suggest that the next few months may be volatile. However valuation spreads remain very elevated which implies that there should be opportunities for stock selection to add value. Moreover there are signs that some companies that cancelled their dividend payments in the crisis are starting to reintroduce them.

Alexander Fitzalan Howard

Zenah Shuhaiber

Tim Lewis

Michael Barakos

Thomas Buckingham

Matt Jones

Investment Managers 24th November 2020

INTERIM MANAGEMENT REPORT

The Company is required to make the following disclosures in its half year report:

Principal Risks and Uncertainties

The Principal Risks and uncertainties faced by the Company fall into the following broad categories: investment and strategy; accounting, legal and regulatory; corporate governance and shareholder relations; operational; financial; and the risk of global pandemics. Information on each of these areas is given in the Business Review within the Annual Report and Accounts for the year ended 31st March 2020.

Related Parties Transactions

During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company.

Going Concern

The Directors believe, having considered the Company's investment objectives, risk management policies, capital management policies and procedures, nature of the portfolio and expenditure projections and the economic and operational impact of Covid-19 that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future and, more specifically, that there are no material uncertainties relating to the Company that would prevent its ability to continue in such operation existence for at least twelve months from the date of the approval of this half yearly financial report. For these reasons, they consider there is reasonable evidence to continue to adopt the going concern basis in preparing the accounts.

Directors' Responsibilities

The Board of Directors confirms that, to the best of its knowledge:

(i) the condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with FRS 104 'Interim Financial Reporting' and gives a true and fair view of the state of affairs of the Company and of the assets, liabilities, financial position and net return of the Company, as at30th September 2020, as required by the UK Listing Authority Disclosure and Transparency Rules 4.2.4R; and

(ii) the interim management report includes a fair review of the information required by 4.2.7R and 4.2.8R of the UK Listing Authority Disclosure and Transparency Rules.

In order to provide these confirmations, and in preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business;

and the Directors confirm that they have done so.

For and on behalf of the Board

Josephine Dixon

Chairman 24th November 2020

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2020

STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2020

1 These reserves form the distributable reserve of the Company and may be used to fund distribution of profits to investors.

STATEMENT OF FINANCIAL POSITION

AT 30TH SEPTEMBER 2020

STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2020

1. Financial statements

The information contained within the financial statements in this half year report has not been audited or reviewed by the Company's auditors.

The figures and financial information for the year ended 31st March 2020 are extracted from the latest published financial statements of the Company and do not constitute statutory accounts for that year. Those financial statements have been delivered to the Registrar of Companies and including the report of the auditors which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.

2. Accounting policies

The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' of the United Kingdom Generally Accepted Accounting Practice ('UK GAAP') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the revised 'SORP') issued by the Association of Investment Companies in October 2019.

FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting Council ('FRC') in March 2015 has been applied in preparing this condensed set of financial statements for the six months ended 30th September 2020.

All of the Company's operations are of a continuing nature.

The accounting policies applied to this condensed set of financial statements are consistent with those applied in the financial statements for the year ended 31st March 2020.

3. Return/(loss) per share

4. Dividend

The combined total of growth and income dividends paid and declared is identified in Statement of Changes in Equity on page 26 of the Company's Half Year Report and Financial Statements. A third interim dividend of 1.40 pence per Income share in respect of year ending 31st March 2021 was declared on 19th November 2020 for payment on 8th January 2021.

5. Net asset value per share

JPMORGAN FUNDS LIMITED

24th November 2020

For further information, please contact:

Paul Winship

For and on behalf of

JPMorgan Funds Limited

020 7742 4000

END

A copy of the half year will be submitted to the FCA's National Storage Mechanism and will be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The half year will also shortly be available on the Company's website at www.jpmeuropean.co.uk where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.