jpmorgan global growth & income plc growth...the investment managers’report provides a...

JPMorgan Global Growth & Income plc Half Year Report & Financial Statements for the six months ended 31st December 2017

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ObjectiveTotal returns from world stockmarkets.

Investment PolicyTo provide a diversified portfolio of approximately 50-90 stocksin which the investment manager has a high degree ofconviction.

Investment Strategy To provide superior total returns and outperform the MSCI AllCountries World Index over the long-term by investing incompanies based around the world. The manager is focused onbuilding a high conviction portfolio of typically 50-90 stocks,drawing on an investment process underpinned by fundamentalresearch. Portfolio construction is driven by bottom-up stockselection rather than geographical or sector allocation.Currency exposure is predominantly hedged back towards thebenchmark. The Company uses borrowing to gear the portfoliowithin a range of 5% cash to 20% geared under normal marketconditions.

Dividend Policy The Company has a distribution policy whereby at the start ofeach financial year the Company will announce the distributionit intends to pay to shareholders in the forthcoming year inquarterly instalments. On aggregate, the intention is to paydividends totalling at least 4% of the net asset value of theCompany as at the end of the preceding financial year.

Gearing The Company issued £30 million fixed rate 30 year unsecurednotes at an annual coupon of 2.93% on 9th January 2018. Theprevious £25 million loan under the revolving credit facility withNational Australia Bank has been repaid and the facilitycancelled. The notes are unsecured which gives the Companyincreased flexibility to manage its borrowings in the future.

Benchmark The Company’s benchmark is the MSCI All Countries WorldIndex in sterling terms (total return with net dividendsreinvested).

Capital Structure At 31st December 2017, the company’s issued share capitalcomprised 154,905,500 Ordinary shares of 5p each including29,419,215 shares held in Treasury.

Share Repurchase and Issuance Policy In order for the Company’s shares to trade at a price close tonet asset value, the Board pursues both a repurchase and ashare issuance policy. Shares are repurchased if the discount tonet asset value is expected to remain over 5%. Any sharesrepurchased are held in Treasury or cancelled. Shares held inTreasury and new shares may be reissued/issued at a premiumto net asset value.

Management Company and Company SecretaryThe Company employs JPMorgan Funds Limited (‘JPMF’ or the‘Manager’), as the Company’s Alternative Investment FundManager (‘AIFM’) and the Company Secretary. JPMF delegatesthe management of the Company’s portfolio to JPMorgan AssetManagement (UK) Limited (‘JPMAM’).

FCA regulation of ‘non-mainstream pooledinvestments’ and MiFID II ‘complex instruments’The Company currently conducts its affairs so that the sharesissued by JPMorgan Global Growth & Income plc can berecommended by Independent Financial Advisers to ordinaryretail investors in accordance with the FCA’s rules in relation tonon-mainstream investment products and intends to continueto do so for the foreseeable future.

The shares are excluded from the FCA’s restrictions which applyto non-mainstream investment products because they areshares in an investment trust.

AICThe Company is a member of the Association of InvestmentCompanies.

WebsiteThe Company’s website, which can be found atwww.jpmglobalgrowthandincome.co.uk, includes usefulinformation on the Company, such as daily prices, factsheetsand current and historic half year and annual reports.

Features

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Contents

HALF YEAR PERFORMANCE

2 Total Returns

ABOUT THE COMPANY

3 Chairman’s Statement

4 Investment Managers’ Report

INVESTMENT REVIEW

6 List of Investments

8 Portfolio Analyses

FINANCIAL STATEMENTS

10 Statement of Comprehensive Income

11 Statement of Changes in Equity

12 Statement of Financial Position

13 Statement of Cash Flows

14 Notes to the Financial Statements

17 INTERIM MANAGEMENT REPORT

SHAREHOLDER INFORMATION

18 Glossary of Terms and Alternative PerformanceMeasures (‘APMs’)

21 Where to buy J.P. Morgan Investment Trusts

25 Information about the Company

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2 JPMORGAN GLOBAL GROWTH & INCOME PLC. HALF YEAR REPORT & FINANCIAL STATEMENTS 2017

Half Year Performance

TOTAL RETURNS (INCLUDES DIVIDENDS REINVESTED) TO 31ST DECEMBER 2017

+6.8%Benchmark return3

Further analysis of these results is given in the table on page 3.

Financial Data31st December 30th June %

2017 2017 change

Shareholders’ funds (£’000) 406,178 377,184 +7.7Shares in issue (excluding shares held in Treasury) 125,486,285 123,661,285 +1.5Net asset value per share 323.7p 305.0p +6.15

Net asset value per share with debt at fair value 323.5p 304.9p +6.1Share price 330.3p 299.8p +10.26

Gearing 1.0% 6.3%Share price premium/(discount) to net asset value per share4 1.43% (2.03)%Ongoing charges excluding performance fee payable 0.54% 0.57%Ongoing charges including performance fee payable 0.66% 0.57%

1 Source: Morningstar.2 Source: Morningstar/J.P. Morgan, using cum-income net asset value per share with debt at par value.3 Source: MSCI. The Company’s benchmark is the MSCI All Countries World Index in sterling terms.4 Source: J.P. Morgan. Ex-income.5 This return excludes dividends reinvested. The return of +8.0% above includes dividends reinvested.6 This return excludes dividends reinvested. The return of +12.3% above includes dividends reinvested.

A glossary of terms and alternative performance measures is provided on page 18.

+12.3%Return to shareholders1

+8.0%Return on net assets2


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About the Company

CHAIRMAN’S STATEMENT

The six month period to 31st December 2017 saw a further rise in global equity markets ina continuing low interest rates environment. During the half year, the total return on theCompany’s net assets was +8.0% compared with the return on our benchmark, the MSCI ACWorld Index (in sterling terms) of +6.8%. The return to shareholders for the same period was+12.3%, reflecting the move in the share price from a discount to a premium to net assetvalue (‘NAV’).

Following the change in the distribution and dividend policy in July 2016 and subsequentstrong investment performance, the Company’s share price discount to NAV initiallynarrowed and then moved to a premium in the second half of 2017, signalling the increasedappeal of the Company’s shares. There has also been an encouraging broadening of ourshareholder base. It was not necessary to buy back any shares during the period; indeedas a consequence of the share price trading at a premium to NAV, the Company reissued1,825,000 shares from Treasury for a total consideration of £5,893,000. The shares havecontinued to command a premium to NAV in 2018, allowing the Company to continuereissuing shares; up to the time of writing, 2,515,000 shares have been reissued fromTreasury in 2018 for a total consideration of £8,034,000.

As announced on 9th January 2018, the Board has issued £30 million fixed rate 30 yearunsecured notes at an annual coupon of 2.93% to take advantage of current marketconditions which we consider offer an attractive level of long term gearing. The previous£25 million loan under the revolving credit facility with National Australia Bank has beenrepaid. The notes are unsecured, which gives the Company increased flexibility to manageits borrowings in the future. There has been no change to the Company’s overall gearingrange of 5% net cash to 20% geared in normal circumstances. The Investment Managersdecreased gearing levels during the half year from 6.3% at the start of the period to 1.0% at31st December 2017.

The Investment Managers’ report provides a detailed commentary on activity, performanceand the market outlook. Global equity markets began 2018 strongly, but we havesubsequently entered a period of turbulence in expectation of a possible acceleration ininflation and consequent increase in interest rates. After such a prolonged rise in marketsit may be sensible to expect this period of consolidation to continue. That said, the Boardbelieves that the Investment Managers’ robust investment process and extensive researchresources will continue to identify attractively priced high quality companies in which toinvest.

For and on behalf of the BoardNigel WightmanChairman 28th February 2018

PERFORMANCE ATTRIBUTION FOR THE SIX MONTHS ENDED31ST DECEMBER 2017

% %

Contributions to total returns

Benchmark return 6.8

Asset allocation –0.1

Stock selection 1.4

Gearing/cash effect 0.2

Currency 0.1

Investment Manager contribution 1.6

Portfolio return 8.4

Management fee/other expenses –0.3

Performance fee –0.1

Net asset value total return 8.0

Share price total return 12.3Source: B-One, JPMAM and Morningstar. All figures areon a total return basis.

Performance attribution analyses how theCompany achieved its recorded performancerelative to its benchmark.

A glossary of terms and alternativeperformance measures is provided on page 18.



About the Company continued

INVESTMENT MANAGERS’ REPORT

Jeroen Huysinga

Tim Woodhouse

Market EnvironmentGlobal equity markets continued on their positive trajectory over the second half of 2017.In general, it was a period characterised by positive economic data releases, strongcorporate earnings and subdued volatility. Against this backdrop, central banks around theworld continued to indicate a gradual reduction in monetary policy stimulus. Emergingmarkets outperformed developed markets, benefiting from a weaker US dollar and strongeconomic fundamentals in China.

Portfolio ReviewThe Company modestly outperformed the index over the six months, with stock selectionthe primary driver of performance. Strong performers in the portfolio included Chineseinsurance company, Ping An Insurance; US shale gas producer, Diamondback Energy; andUS health insurance provider, UnitedHealth Group. Ping An Insurance is well positioned tocapitalise on the rapidly increasing demand for financial products in developing Asia, witha strong management team and impressive technology strategy. Other healthcare stocks,including Allergan and Shire Pharmaceuticals, detracted from performance. US and Russiansupermarket chains, Kroger and Magnit, also underperformed and given the challengingenvironments these companies are facing, we sold our positions. Despite recent weakperformance, we continue to hold US communications company, Dish Network, as thegap between the market value of the business and its true value remains significant.

Our positioning in technology continued to detract from performance as we remainedunderweight ‘FAANG’ stocks (Facebook, Amazon, Apple, Netflix, Google) – only owningGoogle. Our view remains that while they are great businesses, they are certainly notcheap and represent an ebullience/momentum which frequently leads to derating anddisappointment.

Portfolio positioning and outlookGiven the risk that the market was already pricing in the most favourable scenarios aftersuch a sustained bull run, we reduced net gearing to near zero over the summer. We sawsuch a market correction at the end of January and into February this year, arguably laterthan many had expected, as volatility rose sharply. The key question on investors’ minds iswhether this correction is par for the course or the start of something bigger. The evidencetoday would suggest the former – economic growth is looking healthier and moresynchronised globally than it has for many years which should flow through to continuedprofits growth, while bond yields are normalising, rather than overshooting. If we thinkabout monetary policy in terms of real rates, we have been through a period in the US ofnegative or zero real rates and it looks as though the US economy should be able towithstand modestly positive real rates, which would be a sign of underlying health. Giventhe well-flagged slow withdrawal of extraordinary monetary stimulus by central banks weshould expect to see a rise in volatility from previously very compressed levels.

Our focus remains on company-specific valuation signals derived from intensive companyresearch and long term cash flow models. We remain vigilant in ensuring that our analystestimates are as reflective as possible of the changing environment and look to seizeopportunities which heightened market volatility can offer us as active stock pickers. We


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have not made any significant changes to the overall shape of the portfolio which remainspro-cyclically positioned with a bias towards higher beta. Regionally, our bottom-up processcontinues to result in large positions in Europe and the UK whereas North America is anarea in which we are underweight. In the latter region excessive valuation still prevents usfrom investing in bond equivalents and many other mega caps.

Jeroen HuysingaTim WoodhouseInvestment Managers 28th February 2018



LIST OF INVESTMENTS

ValuationCompany £’000

United StatesAlphabet 16,979Pioneer Natural Resources 9,869UnitedHealth 9,741Microsoft 8,681O’Reilly Automotive 7,906Diamondback Energy 7,791Citigroup 7,754Morgan Stanley 6,257Visa 6,099Lowe’s 6,056Molson Coors Brewing 5,934Stanley Black & Decker 5,898Broadcom 5,653Charter Communications 5,161Charles Schwab 5,127DISH Network 5,073Allegion 4,601Allergan 4,505Twenty-First Century Fox 4,503Tableau Software 4,470Zimmer Biomet 4,423Synchrony Financial 4,289Eli Lilly 4,113Mosaic 3,997NIKE 3,899Bristol-Myers Squibb 3,791Chubb 3,450Eaton 3,061Mondelez International 2,960Adobe Systems 2,717WEX 2,656TJX 2,261AmerisourceBergen 2,237Vertex Pharmaceuticals 2,177

184,089


United KingdomPrudential 9,163Vodafone 7,473Standard Chartered 7,316Shire 6,854Ferguson 5,038InterContinental Hotels 4,802ASOS 4,792Taylor Wimpey 4,113BT 3,864Antofagasta 2,921

56,336

JapanDaikin Industries 6,754Mitsubishi UFJ Financial 5,984Mitsubishi 5,205Japan Airlines 4,691DMG Mori 4,174Renesas Electronics 3,994T&D 3,608Toray Industries 3,279JPMorgan Japan Smaller Companies Trust 3,125

40,814

FranceArcelorMittal 6,770Airbus 5,102Renault 4,068Schneider Electric 3,934

19,874

GermanyContinental 5,830Volkswagen Preference 5,287Henkel Preference 4,714Bayer 3,073

18,904

Investment Review


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FinlandOutokumpu 10,107Konecranes 1,944

12,051

ChinaPing An Insurance 7,558CNOOC 4,486

12,044

CanadaTransCanada 6,262Canadian Pacific Railway 4,806

11,068

SingaporeDBS 7,021

7,021

ItalyEnel 6,049

6,049

BelgiumAnheuser-Busch InBev 5,975

5,975

South AfricaBid 5,707

5,707

NetherlandsASML 5,673

5,673

SwedenSvenska Handelsbanken 5,134

5,134


SpainIndustria de Diseño Textil 4,103

4,103

IrelandRyanair, ADR 4,079

4,079

IndiaJPMorgan Indian Investment Trust 3,522

3,522

SwitzerlandSwiss Re 3,034

3,034

RussiaSberbank of Russia, ADR 2,893

2,893

NorwayNorsk Hydro 1,739

1,739Total Investments 410,109



PORTFOLIO ANALYSES

Geographical 31st December 2017 30th June 2017 Portfolio Benchmark Portfolio Benchmark %1 % %1 %

United States 44.9 52.3 43.1 52.7United Kingdom 13.7 6.2 13.8 5.9Japan 10.0 7.9 8.4 7.7France 4.8 3.5 4.0 3.5Germany 4.6 3.2 6.1 3.1Finland 2.9 0.3 2.3 0.3China 2.9 2.8 2.5 2.6Canada 2.7 3.1 2.4 3.1Singapore 1.7 0.4 1.4 0.4Italy 1.5 0.8 1.3 0.8Belgium 1.5 0.4 2.6 0.4South Africa 1.4 0.8 1.4 0.8Netherlands 1.4 0.9 1.1 0.8Sweden 1.3 0.9 0.7 1.0Spain 1.0 1.1 0.8 1.2Ireland 1.0 0.2 2.2 0.2India 0.9 1.0 0.8 1.0Switzerland 0.7 2.6 1.3 2.8Russia 0.7 0.4 1.2 0.4Norway 0.4 0.2 0.9 0.2South Korea — 1.9 — 1.8Denmark — 0.6 1.7 0.6Australia — 2.0 — 2.5Hong Kong — 1.9 — 1.7Taiwan — 1.3 — 1.4Brazil — 0.8 — 0.8Other — 2.5 — 2.3

Total Portfolio 100.0 100.0 100.0 100.0

1 Based on total investments of £410.1m (30th June 2017: £401.0m).

Investment Review continued


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Sector 31st December 2017 30th June 2017 Portfolio Benchmark Portfolio Benchmark %1 % %1 %

Financials 19.2 18.7 20.5 18.6 Consumer Discretionary 16.5 12.0 15.7 12.1 Industrials 14.4 10.9 15.0 10.9 Information Technology 13.9 18.1 10.4 16.9 Health Care 10.0 10.7 12.1 11.4 Materials 7.0 5.5 7.7 5.1 Energy 6.9 6.4 5.5 6.1 Consumer Staples 6.2 8.7 10.2 9.4 Telecommunication Services 2.8 3.0 1.4 3.2 Investment Companies 1.6 — 1.5 —Utilities 1.5 2.9 — 3.1 Real Estate — 3.1 — 3.2

Total Portfolio 100.0 100.0 100.0 100.0

1 Based on total investments of £410.1m (30th June 2017: £401.0m).



Financial Statements

STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 31ST DECEMBER 2017

(Unaudited) (Unaudited) (Audited)Six months ended Six months ended Year ended31st December 2017 31st December 2016 30th June 2017

Revenue Capital Total Revenue Capital Total Revenue Capital Total£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Gains on investments held atfair value through profit or loss — 31,334 31,334 — 65,913 65,913 — 84,015 84,015

Net foreign currency (losses)/gains — (2,652) (2,652) — 4,619 4,619 — 1,051 1,051Income from investments 2,493 — 2,493 1,829 — 1,829 6,715 — 6,715Interest receivable and similarincome 43 — 43 50 — 50 65 — 65

Gross return 2,536 28,682 31,218 1,879 70,532 72,411 6,780 85,066 91,846Management fee (407) (407) (814) (353) (353) (706) (749) (749) (1,498)Performance fee — (204) (204) — (2,419) (2,419) — (2,347) (2,347)Other administrative expenses (242) — (242) (278) — (278) (561) — (561)

Net return on ordinary activitiesbefore finance costs and taxation 1,887 28,071 29,958 1,248 67,760 69,008 5,470 81,970 87,440

Finance costs (77) (77) (154) (85) (85) (170) (162) (162) (324)

Net return on ordinary activitiesbefore taxation 1,810 27,994 29,804 1,163 67,675 68,838 5,308 81,808 87,116

Taxation (223) — (223) (185) — (185) (684) — (684)

Net return on ordinary activities after taxation 1,587 27,994 29,581 978 67,675 68,653 4,624 81,808 86,432

Return per share (note 3) 1.28p 22.56p 23.84p 0.79p 54.73p 55.52p 3.74p 66.15p 69.89p

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

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

The net return on ordinary activities after taxation represents the profit for the period and also the total comprehensive income.


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STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31ST DECEMBER 2017

Called up Capital share Share redemption Capital Revenue capital premium reserve reserves1 reserve1 Total £’000 £’000 £’000 £’000 £’000 £’000

Six months ended 31st December 2017 (Unaudited)At 30th June 2017 7,746 46,670 27,401 282,972 12,395 377,184Issue of shares from Treasury — 2,575 — 3,315 — 5,890 Net return on ordinary activities — — — 27,994 1,587 29,581Dividends paid in the period (note 4) — — — — (6,477) (6,477)

At 31st December 2017 7,746 49,245 27,401 314,281 7,505 406,178

Six months ended 31st December 2016 (Unaudited)At 30th June 2016 7,746 46,670 27,401 201,167 17,170 300,154Expenses in relation to share repurchases — — — (3) — (3)Net return on ordinary activities — — — 67,675 978 68,653Dividends paid in the period (note 4) — — — — (3,957) (3,957)

At 31st December 2016 7,746 46,670 27,401 268,839 14,191 364,847

Year ended 30th June 2017 (Audited)At 30th June 2016 7,746 46,670 27,401 201,167 17,170 300,154Expenses in relation to share repurchases — — — (3) — (3)Net return on ordinary activities — — — 81,808 4,624 86,432Dividends paid in the year (note 4) — — — — (9,399) (9,399)

At 30th June 2017 7,746 46,670 27,401 282,972 12,395 377,184

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



Financial Statements continued

STATEMENT OF FINANCIAL POSITION AT 31ST DECEMBER 2017

(Unaudited) (Unaudited) (Audited) 31st December 2017 31st December 2016 30th June 2017 £’000 £’000 £’000

Fixed assets Investments held at fair value through profit or loss 410,109 381,659 400,972

Current assetsDerivative financial assets 1,048 4,787 2,037Debtors 626 483 2,250Cash and cash equivalents 24,360 7,308 6,131

26,034 12,578 10,418

Current liabilitiesCreditors: amounts falling due within one year (25,587) (1,108) (1,796)Derivative financial liabilities (2,068) (1,268) (4,863)

Net current (liabilities)/assets (1,621) 10,202 3,759

Total assets less current liabilities 408,488 391,861 404,731

Creditors: amounts falling due after more than one year (200) (25,200) (25,200)Provisions for liabilities and chargesPerformance fee payable (2,110) (1,814) (2,347)

Net assets 406,178 364,847 377,184

Capital and reserves Called up share capital 7,746 7,746 7,746Share premium 49,245 46,670 46,670Capital redemption reserve 27,401 27,401 27,401Capital reserves 314,281 268,839 282,972Revenue reserve 7,505 14,191 12,395

Total equity shareholders’ funds 406,178 364,847 377,184

Net asset value per share (note 5) 323.7p 295.0p 305.0p


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STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 31ST DECEMBER 2017

(Unaudited) (Unaudited) (Unaudited) Six months ended Six months ended Year ended 31st December 2017 31st December 2016 30th June 2017 £’000 £’000 £’000

Net cash outflow from operations before dividendand interest (note 6) (1,066) (432) (1,651)

Dividends received 2,581 2,099 5,929 Interest received 24 36 45 Overseas tax recovered 3 79 181 Interest paid (151) (181) (339)

Net cash inflow from operating activities 1,391 1,601 4,165

Purchases of investments (120,821) (113,092) (288,237)Sales of investments 142,762 109,846 283,686 Settlement of forward currency contracts (4,514) 1,502 4,508

Net cash inflow/(outflow) from investing activities 17,427 (1,744) (43)

Dividends paid (6,477) (3,957) (9,399)Issue of shares from Treasury 5,890 — —Expenses in relation to share repurchases — (3) (3)

Net cash outflow from financing activities (587) (3,960) (9,402)

Increase/(decrease) in cash and cash equivalents 18,231 (4,103) (5,280)

Cash and cash equivalents at start of period 6,131 11,411 11,411 Exchange movements (2) — —Cash and cash equivalents at end of period 24,360 7,308 6,131

Increase/(decrease) in cash and cash equivalents 18,231 (4,103) (5,280)

Cash and cash equivalents consist of:Cash and short term deposits 4,265 475 287 Cash held in JPMorgan Sterling Liquidity Fund 20,095 6,833 5,844

Total 24,360 7,308 6,131




1. Financial statementsThe information contained within the financial statements in this half year report has not been audited or reviewed by the Company’sauditors.

The figures and financial information for the year ended 30th June 2017 are extracted from the latest published financial statementsof the Company and do not constitute statutory accounts for that year. Those financial statements have been delivered to theRegistrar of Companies and included the report of the auditors which are unqualified and did not contain a statement under eithersection 498(2) or 498(3) of the Companies Act 2006.

2. Accounting policiesThe financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 ‘The Financial Reporting Standardapplicable in the UK and Republic of Ireland’ of the United Kingdom Generally Accepted Accounting Practice (‘UK GAAP’) and with theStatement of Recommended Practice ‘Financial Statements of Investment Trust Companies and Venture Capital Trusts’ (the revised‘SORP’) issued by the Association of Investment Companies in November 2014 and updated in January 2017.

FRS 104, ‘Interim Financial Reporting’, issued by the Financial Reporting Council (‘FRC’) in March 2015 has been applied in preparingthis condensed set of financial statements for the six months ended 31st December 2017.

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 financialstatements for the year ended 30th June 2017.

In the previous financial year, the Company elected not to prepare a Statement of Cash Flows, applying the exemption from disclosureavailable under FRS 102 Section 7.1A(c). The Company has since reviewed the application of the exemption and has resolved not toapply it this year as the inclusion of the Statement of Cash Flows supports fuller financial analysis for the benefit of all stakeholders.

3. Return per share (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 31st December 2017 31st December 2016 30th June 2017 £’000 £’000 £’000

Return per share is based on the following:Revenue return 1,587 978 4,624Capital return 27,994 67,675 81,808

Total return 29,581 68,653 86,432

Weighted average number of shares in issue 124,084,328 123,661,285 123,661,285

Revenue return per share 1.28p 0.79p 3.74pCapital return per share 22.56p 54.73p 66.15p

Total return per share 23.84p 55.52p 69.89p

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31ST DECEMBER 2017


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4. Dividends paid (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 31st December 2017 31st December 2016 30th June 2017 £’000 £’000 £’000

Unclaimed dividends refunded to the Company (9) — —2017 third interim dividend of 2.20p (2016 final: 3.20p) 2,721 3,957 3,9572018 first interim dividend of 3.04p (2017: 2.20p) 3,765 — 2,7212017 second interim dividend of 2.20p — — 2,721

Total dividends paid in the period/year 6,477 3,957 9,399

All dividends paid in the period/year have been funded from the revenue reserve.

A second interim dividend of 3.04p per share has been paid on 5th January 2018 for the financial year ending 30th June 2018, costing£3,798,000.

A third interim dividend of 3.04p per share has been declared for payment on 6th April 2018 for the financial year ending 30th June2018.

5. Net asset value per share (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 31st December 2017 31st December 2016 30th June 2017

Net assets (£’000) 406,178 364,847 377,184Number of shares in issue 125,486,285 123,661,285 123,661,285

Net asset value per share 323.7p 295.0p 305.0p

6. Reconciliation of net return on ordinary activities before finance costs and taxation to net cash outflowfrom operations before dividends and interest (Unaudited) (Unaudited) (Unaudited) Six months ended Six months ended Year ended 31st December 2017 31st December 2016 30th June 2017 £’000 £’000 £’000

Net return on ordinary activities before financecosts and taxation 29,958 69,008 87,440

Less capital return on ordinary activities beforefinance costs and taxation (28,071) (67,760) (81,970)

Decrease in accrued income and other debtors 330 452 73 (Decrease)/increase in accrued expenses (74) (22) 42 Management fee charged to capital (407) (353) (749)Overseas withholding tax (255) (182) (844)Dividends received (2,581) (2,099) (5,929)Interest received (24) (36) (45)Realised gains on foreign exchange transactions 58 560 331

Net cash outflow from operations beforedividends and interest (1,066) (432) (1,651)




NOTES TO THE FINANCIAL STATEMENTS CONTINUED

7. Fair valuation of investments The fair value hierarchy disclosures required by FRS 102 are given below:

(Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 31st December 2017 31st December 2016 30th June 2017

Assets Liabilities Assets Liabilities Assets Liabilities£’000 £’000 £’000 £’000 £’000 £’000

Level 1 410,109 — 381,659 — 400,972 —Level 21 1,048 (2,068) 4,787 (1,268) 2,037 (4,863)

Total 411,157 (2,068) 386,446 (1,268) 403,009 (4,863)

1 Includes forward foreign currency contracts.


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Interim Management Report

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

Principal Risks and UncertaintiesThe principal risks and uncertainties faced by the Company have notchanged and fall into the following broad categories: investmentand strategy; market; accounting, legal and regulatory; corporategovernance and shareholder relations; operational; going concern;and financial. Information on each of these areas is given in theBusiness Review within the Annual Report and Financial Statementsfor the year ended 30th June 2017.

Related Parties TransactionsDuring the first six months of the current financial year, notransactions with related parties have taken place which havematerially affected the financial position or the performance of theCompany.

Going ConcernThe Directors believe, having considered the Company’s investmentobjectives, risk management policies, capital management policiesand procedures, nature of the portfolio and expenditure projections,that the Company has adequate resources, an appropriate financialstructure and suitable management arrangements in place tocontinue in operational existence for the foreseeable future and,more specifically, that there are no material uncertaintiespertaining to the Company that would prevent its ability to continuein such operation existence for at least twelve months from the dateof the approval of this half yearly financial report. For thesereasons, they consider there is reasonable evidence to continue toadopt the going concern basis in preparing the financial statements.

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

(i) the condensed set of financial statements contained within thehalf yearly financial report has been prepared in accordancewith FRS 104 ‘Interim Financial Reporting’ gives a true and fairview of the state of affairs of the Company and of the assets,liabilities, financial position and net return of the Company, asat 31st December 2017, as required by the UK Listing AuthorityDisclosure and Transparency Rules 4.2.4R; and

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

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

• select suitable accounting policies and then apply themconsistently;

• make judgements and accounting estimates that arereasonable and prudent;

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

• prepare the financial statements on the going concern basisunless it is inappropriate to presume that the Company willcontinue in business;

and the Directors confirm that they have done so.

For and on behalf of the Board

Nigel WightmanChairman 28th February 2018



Shareholder Information

GLOSSARY OF TERMS AND ALTERNATIVE PERFORMANCE MEASURES (‘APMs’)

Return to shareholders (APM)Total return to the shareholder, on a last traded price to last traded price basis, assuming that all dividends received were reinvested,without transaction costs, into the shares of the Company at the time the shares were quoted ex-dividend.

Six months endedTotal return calculation Page 31st December 2017

Opening share price as at 30th June 2017 2 299.8pClosing share price as at 31st December 2017 2 330.3p (a)

Total dividend adjustment factor1 1.019189 (b)

Adjusted closing share price (c = a x b) 336.6p (c)

Total return to shareholder 12.3%

Return on Net Assets (APM)Total return on net asset value (‘NAV’) per share, on a bid value to bid value basis, assuming that all dividends paid out by the Company werereinvested, into the shares of the Company at the NAV per share at the time the shares were quoted ex-dividend.

Six months endedTotal return calculation Page 31st December 2017

Opening cum-income NAV per share with debt at par value as at 30th June 2017 2 305.0p(–) the 2017 third interim dividend of 2.20p declared but not paid pre 30th June 2017 2 (2.20)p

Adjusted opening cum-income NAV per share with debt at par value as at 30th June 2017 302.8p

Closing cum-income NAV per share with debt at par value as at 31st December 2017 2 323.7p(–) the 2018 second interim dividend of 3.04p declared but not paid pre 31st December 2017 2 (3.04)p

Adjusted closing cum-income NAV per share with debt at par value as at 31st December 2017 320.7p (a)

Total dividend adjustment factor2 1.019657 (b)

Final adjusted closing cum-income NAV per share (c = a x b) 327.0p (c)

Total return on net assets with debt at par value 8.0%

1 The dividend adjustment factor is calculated on the assumption that the dividends paid out by the Company are reinvested into the shares of the Company at the last traded pricequoted at the ex-dividend date.

2 The dividend adjustment factor is calculated on the assumption that the dividends paid out by the Company are reinvested into the shares of the Company at the cum-income NAVat the ex-dividend date.

Benchmark returnTotal return on the benchmark, on a closing-market value to closing-market value basis, assuming that all dividends received werereinvested in the shares of the underlying companies at the time the shares were quoted ex-dividend.

The benchmark is a recognised index of stocks which should not be taken as wholly representative of the Company’s investment universe.The Company’s investment strategy does not follow or ‘track’ this index and consequently, there may be some divergence between theCompany’s performance and that of the benchmark.


19

Net Assets with Debt at Fair Value (APM)The Company’s debt (debenture) is valued in the Statement of Financial Position (on page 12) at amortised cost, £200,000, which ismaterially equivalent to the repayment value of the debt on the assumption that it is held to maturity. This is often referred to as ‘Debt atPar Value’. The current replacement or market value of the debt, which assumes it is repaid and renegotiated under current marketconditions, is often referred to as the ‘Debt at Fair Value’. The difference between fair and par values of the debt is subtracted from the NAVto derive the NAV with debt at fair value. The fair value of the £200,000 Debenture issued by the Company has been calculated usingdiscounted cash flow techniques, using the yield from a similar dated gilt plus a margin based on the five year average for the AA BarclaysSterling Corporate Bond spread.

As at 31st December 2017, the cum-income NAV with debt at fair value was £406,007,000 (30th June 2017: £377,043,000) or 323.5p(30th June 2017: 304.9p) per share.

Gearing/Net Cash (APM)Gearing represents the excess amount above shareholder’s funds of total investments, expressed as a percentage of the shareholders'funds. If the amount calculated is negative, this is shown as a ‘net cash’ position.

31st December 2017 30th June 2017Gearing calculation Page £’000 £’000

Investments held at fair value through profit or loss 12 410,109 400,972 (a)

Net assets 12 406,178 377,184 (b)

Gearing (c = a / b – 1) 1.0% 6.3% (c)

Ongoing Charges (APM)The ongoing charges represent the Company’s management fee and all other operating expenses excluding finance costs payable andexcluding/including performance fee payable, expressed as a percentage of the average of the daily cum-income net assets during the yearand is calculated in accordance with guidance issued by the Association of Investment Companies.

The figure as at 31st December 2017 is an estimated annualised figure based on the numbers for the six months ended 31st December 2017.

31st December 2017 30th June 2017Ongoing charges calculation Page £’000 £’000

Management fee 10 1,628 1,498 Other administrative expenses 10 484 561

Total management fee and other administrative expenses 2,112 2,059 (a)Performance fee payable 441 —

Total management fee, other administrative expenses andperformance fee payable 2,553 2,059 (b)

Average daily cum-income net assets 389,469 358,683 (c)

Ongoing Charges excluding performance fee payable (d = a / c) 0.54% 0.57% (d)Ongoing Charges including performance fee payable (e = b / c) 0.66% 0.57% (e)

Share Price Discount/Premium to Net Asset Value (‘NAV’) per share (APM)If the share price of an investment trust is lower than the NAV per share, the shares are said to be trading at a discount. The discount isshown as a percentage of the NAV per share.

The opposite of a discount is a premium. It is more common for an investment trust’s shares to trade at a discount than at a premium (seepage 2).



Shareholder Information continued

Performance attributionAnalysis of how the Company achieved its recorded performance relative to its benchmark.

Performance Attribution Definitions:Asset allocation Measures the impact of allocating assets differently from those in the benchmark, via the portfolio’s weighting in different countries,sectors or asset types.

Stock selectionMeasures the effect of investing in securities to a greater or lesser extent than their weighting in the benchmark, or of investing insecurities which are not included in the benchmark.

Gearing/Cash effectMeasures the impact on returns of borrowings or cash balances on the Company’s relative performance.

CurrencyMeasures the impact of investing in different currencies on the performance which is measured in sterling terms.

Management fee/Other expensesThe payment of fees and expenses reduces the level of total assets, and therefore has a negative effect on relative performance.

Performance feeMeasures the effect of a performance fee charge or writeback.

GLOSSARY OF TERMS AND ALTERNATIVE PERFORMANCE MEASURES (‘APMs’) CONTINUED


21

WHERE TO BUY J.P. MORGAN INVESTMENT TRUSTS

You can invest in a J.P. Morgan investment trust through the following:

1. Directly from J.P. MorganInvestment AccountThe Company’s shares are available in the J.P. Morgan InvestmentAccount, which facilitates both regular monthly investments andoccasional lump sum investments in the Company’s ordinary shares.Shareholders who would like information on the Investment Accountshould call J.P. Morgan Asset Management free on 0800 20 40 20 orvisit its website at am.jpmorgan.co.uk/investor

Stocks & Shares Individual Savings Accounts (ISA)The Company’s shares are eligible investments within a J.P. MorganISA. For the 2017/18 tax year, from 6th April 2017 and ending 5th April2018, the total ISA allowance is £20,000. The shares are also availablein a J.P. Morgan Junior ISA. Details are available from J.P. Morgan AssetManagement free on 0800 20 40 20 or via its website atam.jpmorgan.co.uk/investor

2. Via a third party provider Third party providers include:

Please note this list is not exhaustive and the availability of individualtrusts may vary depending on the provider. These websites are thirdparty sites and J.P. Morgan Asset Management does not endorse orrecommend any. Please observe each site’s privacy and cookie policiesas well as their platform charges structure.

3. Through a professional adviserProfessional advisers are usually able to access the products of all thecompanies in the market and can help you find an investment thatsuits your individual circumstances. An adviser will let you know thefee for their service before you go ahead. You can find an adviser atunbiased.co.uk

You may also buy investment trusts through stockbrokers, wealthmanagers and banks.

To familiarise yourself with the Financial Conduct Authority (FCA)adviser charging and commission rules, visit fca.org.uk

AJ BellAlliance Trust SavingsBarclays StockbrokersBestinvestCharles Stanley DirectFundsNetwork

Hargreaves LansdownInteractive InvestorJames BrearleyJames HaySelftradeThe Share Centre



Shareholder Information continued

Avoid investment fraud1 Reject cold calls

If you’ve received unsolicited contact about an investment opportunity, chances are it’s a high risk investment or a scam. You should treat the call with extreme caution. The safest thing to do is to hang up.

2 Check the FCA Warning List The FCA Warning List is a list of �rms and individuals we know are operating without our authorisation.

3 Get impartial advice Think about getting impartial �nancial advice before you hand over any money. Seek advice from someone unconnected to the �rm that has approached you.

Report a ScamIf you suspect that you have been approached by fraudsters please tell the FCA using the reporting form at www.fca.org.uk/consumers/report-scam-unauthorised-�rm. You can also call the FCA Consumer Helpline on 0800 111 6768

If you have lost money to investment fraud, you should report it to Action Fraud on 0300 123 2040 or online at www.actionfraud.police.uk

Find out more at www.fca.org.uk/scamsmart

Investment scams are designed to look like genuine investmentsSpot the warning signs

Have you been:

• contacted out of the blue• promised tempting returns

and told the investment is safe• called repeatedly, or• told the offer is only available

for a limited time?

If so, you might have been contacted by fraudsters. Remember: if it sounds too good to be true,

it probably is!

Be ScamSmart


HistoryThe Company was formed in 1887. The Company was a general investment trustuntil 1982, when it adopted its current objective. The current name was adoptedon 8th July 2016 from JPMorgan Overseas Investment Trust plc.

The Company is managed by JPMorgan Asset Management (UK) Limited, and thepresent named investment manager, Jeroen Huysinga, is responsible for theportfolio.

DirectorsNigel Wightman (Chairman)Jonathan CareyGay CollinsTristan Hillgarth

Company NumbersCompany registration number: 24299Stock Exchange SEDOL BYMKY69Bloomberg Code: JPGI LNISIN: GB00BYMKY695LEI: 5493007C3I0O5PJKR078

Market InformationThe Company’s unaudited net asset value (‘NAV’) is published daily, via theLondon Stock Exchange.

The Company’s shares are listed on the London Stock Exchange. The marketprice is shown daily in the Financial Times, The Times, The Daily Telegraph, TheScotsman and on the JPMorgan website at www.jpmoverseas.co.uk, where theshare price is updated every fifteen minutes during trading hours.

Websitewww.jpmorganglobalgrowthandincome.co.uk

Share TransactionsThe Company’s shares may be dealt in directly through a stockbroker orprofessional adviser acting on an investor’s behalf. They may also be purchasedand held through the J.P. Morgan Investment Account, J.P. Morgan ISA andJ.P. Morgan Junior ISA. These products are all available on the online service atjpmorgan.co.uk/online

Manager and Company SecretaryJPMorgan Funds Limited

Company’s Registered Office60 Victoria EmbankmentLondon EC4Y 0JPTelephone number: 020 7742 4000

For company secretarial and administrative matters please contact Divya Amin atthe above address.

DepositaryBNY Mellon Trust & Depositary (UK) LimitedBNY Mellon Centre160 Queen Victoria StreetLondon EC4V 4LA

The Depositary has appointed JPMorgan Chase Bank, N.A. as the Company’scustodian.

RegistrarsEquiniti LimitedReference 1103Aspect HouseSpencer RoadLancingWest Sussex BN99 6DATelephone number: 0371 384 2330

Lines open 8.30 a.m. to 5.30 p.m. Monday to Friday. Calls to the helpline will costno more than a national rate call to a 01 or 02 number. Callers from overseasshould dial +44 121 415 0225.

Notifications of changes of address and enquiries regarding share certificates ordividend cheques should be made in writing to the Registrar quoting reference1103. Registered shareholders can obtain further details on their holdings on theinternet by visiting www.shareview.co.uk.

New Zealand Registrars Computershare Investor Services Limited Private Bag 92119, Victoria Street West, Auckland 1142 Level 2 159 Hurstmere Road Takapuna Auckland New Zealand. Telephone: 09 488 8777

Notifications of changes of address and enquiries regarding certificates ordividend cheques should be made in writing to the Registrars.

Independent AuditorsPricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors7 More London Riverside London SE1 2RT

UK BrokersWinterflood Securities LimitedThe Atrium Building Cannon Bridge 25 Dowgate Hill London EC4R 2GA Telephone: 020 3100 0000

New Zealand Brokers First NZ Capital Securities P.O. Box 396 Wellington New Zealand Telephone: 0800 800 968 (NZ Toll Free)

Please contact Peter Irwin

Savings Product AdministratorsFor queries on the J.P. Morgan Investment Account and J.P. Morgan ISA, seecontact details on the back cover of this report.

Information about the Company

FINANCIAL CALENDAR

Financial year end 30th June

Half year results announced February

Final results announced September

Dividends (quarterly) January, April, July, October

Interest payment on 4.5% perpetual debenture stock 1st January, 1st July

Annual General Meeting November

A member of the AIC

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www.jpmglobalgrowthandincome.co.uk

Telephone calls may be recorded and monitored for security and training purposes.

I122 | 02/18

J.P. MORGAN HELPLINE

Freephone 0800 20 40 20 or +44 (0) 1268 444470.Telephone lines are open Monday to Friday, 9am to 5.30pm.

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