Half-year Report

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN ELECT PLC

UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS

ENDED 28th FEBRUARY 2021

Legal Entity Identifier: 549300FIUYKKL39ILD07

Information disclosed in accordance with DTR 4.2.2

CHAIRMAN'S STATEMENT

Markets have been dominated by the response to the pandemic through both fiscal stimulus and very loose monetary conditions. In general, these policies have been very positive for risk assets like equities. More recently, as the end of the crisis has become more visible, the expectation of a surge in economic activity has unsettled bond markets and been to the benefit of more cyclical markets and sectors, where earnings momentum is likely to be strong. The portfolio positioning reflects these shifting sands, while recognising that government policies still provide a tailwind.

Managed Growth

The objective of the Managed Growth share class is long term capital growth. In the six month period, the portfolio outperformed its benchmark and delivered a total return on net assets of 15.5%, compared with the portfolio's benchmark which returned 9.9%. The share price total return was 20.4%. The long-term performance of the Managed Growth share class continues to be strong, with annualised outperformance against the benchmark index over 10 years of 1.8%. An analysis of performance is set out in the Investment Managers' Report below.

For the half year ended 28th February 2021, the Board has declared and paid two interim dividends totalling 8.55p per Managed Growth share compared to 8.95p for the half year ended 29th February 2020. Although this share class is a growth vehicle, any income generated during the period is generally distributed in that period and investment decisions are not made with the objective of maintaining or growing income.

Managed Income

The objective of the Managed Income share class is a growing income return with potential for long term capital growth. Over the six months to 28th February 2021, the Managed Income portfolio delivered a total return on net assets of 13.2%, ahead of the portfolio's benchmark which returned 12.0%. The share price total return was 16.3%. An analysis of performance is set out in the Investment Managers' Report below.

As expected, for the half year ended 28th February 2021 the Board declared and paid two quarterly dividends totalling 2.2p per Managed Income share, as it did in the half year ended 29th February 2020. The Board declared a third interim dividend of 1.10p per share on 6th May 2021, consistent with the previous two quarters. The level of the fourth interim dividend will be determined by the Board towards the end of the Company's financial year and will depend on the level of dividends received and anticipated by the Company, and the level of reserves at this time.

Managed Cash

The objective and policy of the Managed Cash share class is to achieve a return in excess of sterling money markets by investing primarily in GBP denominated short-term debt securities through investment in JPMorgan Funds - Sterling Managed Reserves Fund (JSMRF). The Managed Cash portfolio delivered a total return of 0.1% over the period under review. The share price was unchanged. The Board considers this class to be an asset allocation tool which continues to benefit shareholders of the Company's other share classes, offering the opportunity to switch into a lower risk share class in times of market volatility.

During the period under review, the Board declared an interim dividend of 0.40 pence per Managed Cash share. No further dividends are expected to be paid on this share class for the financial year ending 31st August 2021. As previously announced, in future years, it is expected that any dividend for this Share Class will be declared in the first quarter of the Company's financial year, which begins on 1st September.

Gearing

The Board's policy is to not utilise borrowings to increase the funds available for investment for the Managed Growth share class. The Board monitors closely the level of indirect gearing through the underlying investments. The Managed Income share class has the ability to use short term borrowings to increase potential returns to shareholders. Its policy is to operate within a range of 85% to 112.5% invested. The Company has available a £20 million multicurrency revolving credit facility with Scotiabank. Discussions are well advanced to renew this facility which expires in June 2021. At the half year end £7 million was drawn and the Managed Income portfolio was 5.7% geared.

Board

As previously announced, Davina Walter and I joined the Board as Non-Executive Directors with effect from 15th October 2020. I was appointed Chairman of the Board following the retirement of Alan Hodson. Alan served as a Director of your Company for nine years, which included three years as Chairman of the Board. The Directors are extremely grateful for Alan's contributions during his time on the Board and wish him well in his future endeavours.

Outlook

Markets have adapted quickly to minimal interest rates and fiscal policies which would have seemed reckless before the crisis, and these factors are behind the rise in valuations which have characterised the last year. Looking ahead, it is likely that fiscal policies will remain generous as the extent of damage done to the global economy by the pandemic is still uncertain. We expect corporate earnings will recover in the second half of the year, but given the likelihood of growing concerns around inflation and the risk that fiscal packages are too aggressive, volatility may well return even as the broad picture remains positive.

Steve Bates

Chairman 13th May 2021

INVESTMENT MANAGERS' REPORT - MANAGED GROWTH

Performance Review

The Managed Growth portfolio outperformed its benchmark over the period, returning +15.5% versus the benchmark total return of +9.9%. The total return to shareholders was +20.4%.

Over the six month period the portfolio outperformed its benchmark in what was a period of above average volatility and pro-risk sentiment markets. Six out of the ten largest holdings outperformed their respective benchmarks, which was a driver of the Managed Growth Portfolio's outperformance. In addition, all of our US strategies outperformed their corresponding benchmark and contributed to the positive relative return. Within the portfolio, the UK was the best performing region, followed by the US. Returns across all regions were positive over the review period.

We reduced our exposure to the US as we trimmed our Baillie Gifford US Growth Trust position to take profit given the exceptional performance of the trust leading up to October. We further reduced our US position selling some of our holdings in the JPMorgan US Select Equity and the JPMorgan US Equity All Cap Funds in November and February, given the strong performance. We increased our UK exposure over the review period but remain underweight versus the benchmark, adding to the Temple Bar and Lowland trusts, as we looked to increase the value tilt in the portfolio and take advantage of attractive valuations in the region. We reduced our Finsbury Growth and Income Trust position given the growth tilt of the strategy and invested some of the proceeds in the Fidelity Special Values Trust for its value focus. In February, we added a new position to the portfolio, the Aberforth Smaller Companies Trust, to increase our UK small cap exposure, as we looked to participate in the cyclical recovery of the economy. For the same reasons we added to our Mercantile Investment Trust allocation in February.

Discounts have been volatile and ended the review period on average narrower than at the Company's year end. Some of the biggest moves were in the JPMorgan Smaller Companies Trust which saw a discount tightening of 10.5% over the review period, in line with its strong absolute performance. In contrast, the Polar Capital Technology Trust discount widened gradually over the review period, reflecting the rotation from growth to value sectors.

We estimate that discount narrowing contributed approximately 1.1% of the portfolio return.

Outlook

We continue to believe that global growth will be above trend, driven by commitments from central banks to easy policy and tolerance of steeper yield curves. The economy is transitioning quickly through the early phase of the market cycle, especially in the U.S. and China, with large parts of the economy now suggesting they are in the middle of the cycle. Fiscal support now looks less uniform, however we expect monetary policy to still remain highly accommodative. We continue to believe inflation will be volatile and expect there to be a spike in the second quarter, but for overall levels to remain moderate. We continue to monitor downside risks, including policy changes beyond the headlines and the nature of monetary policy withdrawal.

Katy Thorneycroft

Simin Li

Peter Malone

Investment Managers 13th May 2021

INVESTMENT MANAGERS' REPORT - MANAGED INCOME

Dividend Review

During 2020 the UK stock market registered an underlying dividend decline of 38.1%; this compares to the 2.8% growth delivered in 2019. Special dividends fell by 90%. The dividends of companies comprising the FTSE 100 index fell by 35% while the dividends of mid cap companies (those in the FTSE 250) fell by 56%. The difference between the two reflects a greater proportion of companies in the FTSE 100 involved in business activities that were able to continue operating during the lock down periods. These include pharmaceuticals, food producers and food retailers.

As the pandemic progressed and countries entered lock down it became imperative for companies to preserve cash, with two thirds cancelling or cutting their dividends. Banks registered the largest percentage decline (100%) as dividends were suspended at the behest of the Prudential Regulation Authority (PRA). Travel & leisure companies cut their dividends by 80% in aggregate whilst general retailers' dividends fell 76%. Food retailers were the stand out exception, growing their dividends by 22%.

Of the total fall in UK dividends, banks and other financial services companies accounted for 40% and oil companies a further 20%. Miners accounted for 10%. Consumer facing sectors accounted for most of the balance. The impact of the fall in dividends from UK companies led to a 23% reduction in the dividends received by the Company in the year ending 31st August 2020 compared to the preceding year. The forecast for the current financial year to 31st August 2021 is for dividends to fall modestly by a further 3.5%. From there we expect dividend growth to turn positive. The forward yield of the portfolio is 4%. By contrast the forward yield of the FTSE All Share index is 3.6%.

Having slashed pay-outs in 2020, businesses such as the large oil companies have set more sustainable levels of dividends. The consensus expectation is for dividends to grow by 10% in calendar 2021. This appears reasonable as banks have been permitted to restart pay-outs and mining companies should grow dividends slightly. However given the large fall in 2020 this means that total dividends in 2021 will only be 66% of the total dividends paid in 2019.

Performance Review

During the Company's financial half year ended 28th February 2021 the Managed Income portfolio delivered a total return of +13.2%, in comparison to the benchmark's total return of +12.0%.

The market rose in the last two months of 2020 as optimism grew that effective Covid-19 vaccines had been developed and with the conclusion of a negotiated settlement with the EU. Both of these developments are supportive of economic recovery. Therefore the sectors that had the biggest gains for the period were banks, travel & leisure and construction as their activities benefit greatly from economic growth. On the other hand sectors which had performed strongly in the first half of the Company's financial year, such as food & drug retailers, pharmaceuticals and electricity were amongst the top laggards.

The comments above are reflected in portfolio returns relative to the market. Our holdings in National Express, Hollywood Bowl and One Savings Bank were amongst the biggest contributors to the portfolio's returns. Our holdings in GlaxoSmithKline, AstraZeneca and Polymetal, the gold miner, detracted from returns.

Portfolio Review

During the period under review we made use of the Company's borrowing facility. As at 28th February 2021, the equity exposure of the Managed Income portfolio was 105.7% with the level of gearing primarily influenced by individual stock opportunities.

We assess individual investment opportunities on whether earnings estimates are being revised up, whether the valuation is attractive and whether the balance sheet and forecast cash flows allow for dividend growth. As such, portfolio construction is determined by bottom up stock selection with a focus on potential and sustainable dividend growth.

The largest sector exposures in the portfolio are Banks, General Retail and Home Construction. The outlook for domestically focused banks has improved as the roll out of Covid vaccines proceeds at speed. We continue to find attractive opportunities in the General Retail sector. Despite lockdowns Dunelm, Halfords and Next have enjoyed resilient sales as they were quick to adjust their business models to capture the shift to on-line. Cash flows have recovered from their lows which should allow for dividends to return. Home Construction has been and remains one of our long term sector overweight positions. Once construction sites were allowed to reopen sales activity recovered quickly. Subsequent earnings delivery was strong, balance sheets remain robust and dividends which were suspended a year ago have been partially reinstated.

Transactions

During the six month period, new positions included 888 Holdings, NatWest and Dixons Carphone. We also added to some existing positions that are set to benefit from the recovery in economic activity expected as lock down eases.

888 Holdings operates internet gaming websites. Social restrictions provided a strong tailwind for gamers confined to home and accelerated the structural shift towards online services. The company declared a special dividend in addition to the interim dividend. This is consistent with the group's practice in some previous years when it returned surplus cash to shareholders. We added Natwest to the portfolio as an anticipated recovery in consumer spending funded by credit cards should prove highly profitable for the group. It is very attractively valued and following the PRA's decision to allow the resumption of dividends the yield is forecast to be 4.6%. Dixons Carphone was bought as although it was hit hard by Covid-19 we believe it is well placed for recovery. It is not expected to pay a dividend in the current year but anticipated distributions from 2022 are attractive.

We sold our positions in Qinetiq (defence technology) and Avast (cyber security). We also reduced some of our holdings in companies that are likely to benefit less from economic recovery. These include Diageo, British American Tobacco and Reckitt Benckiser.

Outlook

The success of the UK's vaccine rollout programmes, coupled with policies around stimulus programs, should lift business confidence and market valuations. While none of the data indicate that the economy is even close to full health right now, they do signal diminishing distress. Given the dearth of competing opportunities with persistently low interest rates, equities continue to look attractive. However, with many shares having already performed strongly, an active and discerning approach to stock investing remains paramount from here. While economic growth in the first half of 2021 will continue to be impeded by the pandemic, the latter part of the year should see significant upside in consumption as vaccines are rolled out globally and pent-up demand is unleashed. Accordingly, we see earnings for global corporations rebounding over this year to nearly their pre-pandemic levels. Amid this backdrop, UK equities look particularly promising given their strong dividend yield, attractive valuations and scope for profit margin expansion. Though every crisis is different, looking out into the next five years, we expect earnings growth to be substantial, front-loaded and not very dissimilar to the rebound from the global financial crisis. Cyclically geared markets, sectors and companies, which have been at the heart of the storm, are likely to benefit, but it is crucial to differentiate cyclical from structural headwinds and tailwinds as the recovery takes shape. While several expectations are priced in, historical experience shows that the potential for growth from a rebounding economy can often be underestimated.

John Baker

Katen Patel

Investment Managers 13th May 2021

INVESTMENT MANAGERS' REPORT - MANAGED CASH

The Managed Cash share class returned +0.1% over the six month period to 28th February 2021. The Managed Cash class invests its assets in the JPMorgan Sterling Managed Reserves Fund which has an objective to invest in a blend of money market securities and short term bonds.

During this six month period, the Bank of England's (BoE) Monetary Policy Committee (MPC) held the deposit rate at 0.1%. However, in November 2020, the BoE announced an expansion of its quantitative easing programme, with the MPC announcing an increase in Gilt purchases of £150 billion. This came in above market expectations of £100 billion and at a point in which growth forecasts were being cut amid a rising Covid-19 infection rate following the emergence of a more infectious variant.

By February 2021, the market had completely priced out any near-term prospect of the deposit rate being cut below zero. As the quarter continued and the global reflation theme gathered momentum, the BoE acknowledged that the longer end of government bond curves had risen significantly. However, they continued to focus their rhetoric on economic conditions, which remain favourable, as opposed to viewing steepening curves as destabilising.

Portfolio Commentary - Sterling Managed Reserves Fund

In terms of our positioning, we built substantial liquidity into the portfolio by holding significant exposure to very short-dated assets. This position has been taken with a consideration to the front-end of the curve, which offers very little steepness out to 12 months. Additionally, the fund took some profits following the spread tightening that we saw towards the end of last year. We remain positive on front-end credit fundamentals and are using the ample liquidity in the portfolio to add risk selectively in two to three year maturities.

At the end of February 2021, with the reflation theme dominating headlines and valuations having tightened, the fund's duration stood at 0.38 years. With the fund's exposure to corporate credit having made a substantial contribution to returns in the months following the Covid-19 selloff and risks to the economy mounting amidst higher infection rates and the end of the Brexit transition period, we reduced duration and took profits. In doing so, we also increased the quality of the fund by reducing our exposure to BBB rated assets and reduced our securitized position too. Nonetheless, we are still confident on the fundamentals of these parts of the market and will gradually add risk back on where we see issuers we like trading at attractive valuations.

One area that we increased exposure to during this reporting period was our position in non-GBP denominated assets, with currency risk hedged back. One of these positions was Japanese Treasury Bills. Hedged back into GBP, these have offered an attractive yield, whilst also boosting the quality and liquidity of the fund. We subsequently reduced this position going into the end of March 2021 with the basis becoming less attractive, however it is something we may look to build again moving forward.

Outlook

Better-than-expected economic news and the swift vaccine rollout have lifted expectations for a rapid recovery, triggering a pivot in BoE monetary policy. The latest Monetary Policy Report projects GDP will recover rapidly in 2021 towards pre-COVID-19 levels as lockdowns are lifted. Unemployment is expected to peak mid-year, at 7.8%, before retreating toward the end of the year. Inflation is expected to rise towards 2% within two years. While markets no longer expect negative base rates, the BoE remains committed to adding negative rates to its potential economic policy toolkit once tactical market preparation for their use is concluded in Q3 2021. The central bank is also reviewing the 2018 exit guidance that asset purchases would not be reduced until the Bank Rate had reached at least 1.5%. The positive economic outlook has pushed forward curves higher, implying the BoE could be hiking base rates within two years. But with the UK still facing considerable headwinds, this may be too optimistic.

JPMorgan Asset Management

Investment Manager 13th May 2021

INTERIM MANAGEMENT REPORT

The Company is required to make the following disclosures in its half-yearly financial report.

Principal and Emerging Risks and Uncertainties

The principal and emerging risks faced by the Company fall into the following broad categories: investment underperformance against benchmark, fraud and cyber crime, dividends, accounting, legal and regulatory, business strategy, board loses confidence in Investment Manager, borrowing, third party risk and global pandemic. The emergence and spread of coronavirus (Covid-19) has raised the emerging risk of global pandemics. Information on the principal risks of the Company is given in the Business Review section within the 2020 Annual Report and Financial Statements.

Related Party Transactions

During the half year to 28th February 2021, no new agreements were entered into with related parties 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, as well as the economic situation in the context of coronavirus 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 pertaining to the Company that would prevent its ability to continue in such operational existence for at least 12 months from the date of the approval of this half-yearly financial report. For these reasons, they consider there is reasonable evidence to adopt the going concern basis in preparing the financial statements.

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 at 28th February 2021, as required by the UK Listing Authority Disclosure Guidance and Transparency Rules 4.2.4R; and

(ii) the interim Management report includes a fair review of the information required by 4.2.7R (important events that have occurred since inception, their impact on these financial statements and a description of the principal risks facing the Company) and 4.2.8R (related party transactions since inception that have materially affected the financial position or performance of the Company) of the UK Listing Authority Disclosure Guidance 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 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

Steve Bates

Chairman 13th May 2021

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 28TH FEBRUARY 2021

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period.

The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies.

The net return/(loss) after taxation represents the profit/(loss) for the period/year and also the Total Comprehensive Income.

STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 28TH FEBRUARY 2021

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

STATEMENT OF FINANCIAL POSITION

AT 28TH FEBRUARY 2021

STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 28TH FEBRUARY 2021

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 28TH FEBRUARY 2021

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 August 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 includes 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 '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, and updated in March 2018, has been applied in preparing this condensed set of financial statements for the six months ended 28th February 2021.

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 August 2020.

3. Return/(loss) per share

4. Dividends

1 All the dividends paid and declared in the period have been funded from the Revenue Reserve.

2 In accordance with the accounting policy of the Company, these dividends will be reflected in the financial statements of the following period.

5. Net asset value per share

The net asset values per share are calculated as follows:

JPMORGAN FUNDS LIMITED

13th May 2021

For further information, please contact:

Priyanka Vijay Anand

For and on behalf of

JPMorgan Funds Limited

020 7742 4000

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.

ENDS

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

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