Half-year Financial Report

JPMorgan US Smaller Co. IT

17 September 2026

 

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN US SMALLER COMPANIES INVESTMENT TRUST PLC

HALF YEAR REPORT & FINANCIAL STATEMENTS

 FOR THE SIX MONTHS ENDED 30TH JUNE 2026

Legal Entity Identifier: 549300MDD7SOXDMBN667

Information disclosed in accordance with the DTR 4.2.2

CHAIR'S STATEMENT

I am pleased to report strong positive total returns for your Company over the six months to 30th June 2026, however the current trends of the market continue to present a significant headwind to performance relative to the Company's benchmark, the Russell 2000 Index. I would like to assure shareholders that your Board and Manager remain acutely aware of this underperformance, irrespective of the absolute returns. The Board therefore continues to engage with the Manager, Company Broker and, as far as possible, shareholders at a heightened level. While offering support and encouragement to the Portfolio Managers to remain true to the proven investment philosophy, we are directing the team, leveraging J.P. Morgan's extensive investment capabilities, to identify areas for development within the investment process, focusing particularly on enhanced risk analysis and portfolio construction.

We would like to thank you for your continued support at this challenging time.

Performance and market backdrop

The first half of 2026 saw the Russell 2000 Index post significant gains in absolute terms. This was in part fueled by the continued relative strength of the US economy, despite higher energy prices, which in turn has supported earnings growth. Not only did small caps perform strongly in absolute terms, but the Russell 2000 also outperformed the large-cap focused S&P 500 Index, as market participants began to respond to the significant valuation differential between small and large cap stocks that we have highlighted over recent years.

With nearly 1,500 of the stocks in the Russell 2000 underperforming over the period, the key drivers of the Russell 2000 performance continued to be extremely focused, with the list of names contributing most strongly to performance dominated by lower-quality, speculative growth stocks, distributed across a small number of AI-associated industries. Higher-quality, lower-risk and more reasonably-valued stocks again failed to keep pace. As an illustration of the concentration of the composition of the benchmark return, it is notable that the thirty stocks (less than 2% of the companies in the index) that contributed most strongly to the benchmark's total return contributed 35% of the total performance for the period. Twelve of this top thirty, including the largest contributor, Bloom Energy, were unprofitable in their most recent full year reports.

While the Company's net asset value (NAV) total return was strongly positive at +17.2%, the Manager's de-emphasis of the shares of expensive, less-profitable and highly-indebted companies in the portfolio, and exposure to higher-quality, less expensive stocks, sometimes with a perceived increasing risk from AI-enabled competitors, meant that it underperformed the index, which posted a total return of +24.1%.

The total return to shareholders was +12.1%, reflecting a widening in the share price discount to NAV to 10.8% on 30th June 2026, from 6.7% at the end of 2025. The discount averaged 8.5% over the review period.

A full explanation of recent portfolio performance is provided in the Investment Manager's Report that follows, along with details of portfolio changes and the Portfolio Managers' view on the outlook for the market and your Company.

Discount Management

The Company continues its active, NAV-enhancing share buyback program. Over the review period 3,170,113 shares were repurchased into Treasury at an average discount of 8.7%. This resulted in a capital return of approx. £13 million to shareholders. Since the period end, a further 2,896,327 shares have been purchased as at 14th September 2026, when the discount stood at 8.9%.

Stimulating demand for the Company's shares is a further means of supporting the share price, and to this end, marketing activity remained strong, with the aim of promoting the Company as a vehicle to profitably 'Invest in the Heart of America'. This activity included shareholder events, and regular video and article updates from the Investment Manager (available on the Company's website). In addition, the Company recently launched its LinkedIn page www.linkedin.com/company/jpmorgan-us-smaller-companies-investment-trustplc, where shareholders and others can follow updates and thought pieces related to the Company.

Dividend

For the financial year ended 31st December 2025, a dividend of 3.2p per share was paid on 10th July 2026 (2024: 3.1p). The dividend for the current financial year ending 31st December 2026 is expected to be announced in April 2027 and paid in July 2027.

The Company's objective is unchanged and remains one of capital growth. The dividend distribution amount will normally be driven by the minimum dividend required to maintain the Company's investment trust status. Therefore the dividend level may fluctuate as the distributions typically reflect the naturally occurring income on the underlying portfolio.

Gearing

The Company ended the period with gearing of 9.1%. The Company has a US$35 million revolving credit facility, with a US$5 million accordion option, with Bank of America. As at 30th June 2026, the Company had drawn down US$35 million, representing gearing of 9.1% compared to 9.7% at the end of 2025. The reduction in the level of gearing over the period is due to the investment performance-led growth in the Company's assets.

The Board believes that the use of gearing is a key advantage of the investment trust structure. As well as enhancing long-term positive returns, it provides scope for the Portfolio Managers to take advantage of temporary valuation dislocations, such as those evident in the US small cap market today, and to reinforce their conviction in the long-term opportunities on offer.

Board and Succession Planning

As previously announced, Shefaly Yogendra retired as a Non-Executive Director of the Company at the AGM in June 2026. On behalf of the Board and shareholders, I would like to thank her for the significant contribution she made to the effective operation of the Company over the nine years of her tenure.

In line with our succession planning framework, and following a search process conducted in collaboration with an external adviser, we are delighted to welcome Penny Kyle as a Non-Executive Director with effect from 1st August 2026. She will stand for election to the Board by shareholders at the next AGM, expected to be held in June 2027. Penny has international experience across investment management, distribution, and regulated governance, most recently serving as Chief Operating Officer, EMEA Distribution, at Franklin Templeton. She brings deep US equity and North American market expertise, alongside strong oversight, strategic and operational experience.

Following Penny's appointment, the Board consists of four Non-Executive Directors, with an appropriate balance of skills, diversity, and experience.

Outlook

The Board continues to share the Portfolio Managers' conviction in the Company's investment philosophy and their positive view on the outlook for US smaller cap companies. The valuation case for the sector remains compelling. Despite recent market gains, US small cap valuations have rarely been this cheap. Comparable moments in history include the ".com boom" of the late 1990s and in the global financial crisis of 2007-08. Subsequent to these periods of dislocation small caps outperformed large caps for extended periods.

History therefore suggests that a sustained rebound in small caps is overdue. While these rebounds typically start with lower-quality stocks in the early stages, they tend to develop quickly into strong performance across all investment styles. There are signs that this recovery may have started. The source of market returns is broadening from large caps into the small cap market, suggesting that investors are beginning to appreciate the value on offer at the smaller end of the spectrum.

We are clearly disappointed by the recent relative performance of the Company, albeit against a benchmark that can experience distortion and be somewhat unrepresentative of the style of long-term investment pursued by the Company. We continue to work closely with the Portfolio Managers to monitor performance, and all aspects of the Company's management, and we welcome recent efforts to identify and capitalise on opportunities that have arisen in these volatile conditions - adding new and exciting names to the portfolio at attractive valuations.

In conclusion, we believe that the Company is well-positioned to benefit from a return to more normal market conditions that should deliver strong absolute gains - and relative performance - for shareholders.

Thank you for your continued patience and support.

Stay informed

The Company delivers email updates with regular news and views, as well as up-to-date performance data. If you have not already signed up to receive these communications and you wish to do so, you can opt in via https://tinyurl.com/JUSC-Sign-Up or by scanning the QR code provided in the Half Year Report.

Further, the Board and I are keen to continue to develop our relationship with shareholders, and we therefore welcome your questions and observations via email at [e-mail].

Dominic Neary

Chair                                                                                                                                   

INVESTMENT MANAGER'S REPORT

Market Review

US equities delivered strong returns during the first half of 2026, overcoming periods of heightened volatility along the way. The S&P 500 Index rose 11.7% (in GBP) during the six months ended 30th June 2026, driven by resilient economic growth, robust corporate earnings and increasing investor confidence in the long-term potential of artificial intelligence ('AI').

Sentiment weakened during the first quarter as geopolitical tensions in the Middle East intensified, culminating in an outbreak of conflict across the region. Energy prices rose sharply following the closure of the Strait of Hormuz, reigniting inflation concerns and prompting investors to reassess the expected path of US monetary policy. However, underlying US economic conditions proved impervious to these headwinds. Labour markets remained stable, consumer spending was supportive and corporate earnings generally exceeded expectations, alleviating fears of a more significant slowdown. The market recovered sharply during the second quarter. Despite elevated oil prices and persistent geopolitical risks, investors seemed increasingly willing to look through short-term disruptions and focused instead on the resilience of corporate fundamentals.

Against this backdrop, US smaller capitalisation equities outperformed their large cap counterparts as investors broadened their focus beyond technology mega cap companies and increasingly sought opportunities in more cyclical segments of the market. While concerns around inflation, oil prices and the economic implications of AI-driven disruption weighed on sentiment at various points during the period, earnings expectations for small cap businesses remained relatively positive and continued to compare favourably with those of larger businesses.

Performance among smaller companies was shaped by two dominant themes: sustained investment in AI infrastructure and growing confidence in a US economic recovery. Those exposed to data centres, power infrastructure, electrical equipment, semiconductors and related technologies benefitted from strong demand as tech companies continued to invest heavily in the expansion of their AI capabilities. At the same time, improving manufacturing activity and stronger fundamentals across several cyclical industries supported businesses linked to industrial production, transportation and capital expenditure trends.

Despite the strength of the broader market, leadership was concentrated among quite a small group of AI-related stocks, which accounted for a significant share of overall returns. More speculative, lower quality and higher beta businesses generally outperformed. This created a challenging environment for the shares of many high-quality, cash-generative businesses. Although their operational performance and earnings trends remained robust, they were overshadowed by investors' enthusiasm for AI-related opportunities. The resulting divergence between share price performance and underlying business quality was one of the defining characteristics of the first half of 2026.

Performance

The portfolio participated in much of the market upside over the review period, supported by improving fundamentals across many cyclical sectors. The Company's net asset value posted a positive return of 17.2% in GBP terms over the six months ended 30th June 2026. However, the Company underperformed its benchmark, the Russell 2000 Index (net), which posted a return of 24.1% in GBP terms. Relative performance was undermined due to our style bias which favours high-quality businesses which we believe have scope of generating excess returns over the long-term. During the past six months, these kinds of stocks lagged the AI-driven momentum stocks which led to the exceptionally narrow market rally.

Stock selection was thus the primary driver of underperformance, as the portfolio was underweight some of the market's biggest AI winners. In addition, weakness among several - mainly financial - holdings perceived to be at risk from AI disruption to traditional business models were a further drag on relative returns. For example, our exposure to MarketAxess, an electronic fixed-income trading platform in the financial sector, produced lacklustre returns despite reporting strong growth in trading activity and improved financial results. The company's first quarter earnings report showed improvements in revenue, earnings, profitability and trading volumes over the past year, supported by higher market volatility and strong growth across international markets. However, investors remained focused on continued weakness in US corporate bond markets, lower fee capture, and a slow start to the second quarter, as historically tight credit spreads and new issuance weighed on activity. While MarketAxess's management continued to invest in product innovation and maintained its full-year outlook, concerns around market share trends and the earnings trajectory weighed on investment sentiment.

Our positioning in consumer discretionary was another key detractor. Our exposure to Planet Fitness, one of the US's biggest franchisers and operators of fitness centres, underperformed during the period. Investor sentiment regarding the stock deteriorated following weaker membership growth and enrolment trends. Planet Fitness highlighted temporary disruptions due to winter storms and elevated membership cancellations, while the first quarter results reflected broader macroeconomic and execution headwinds that led management to lower its full year guidance outlook. Investors' concerns were amplified by communication around long-term targets at a recent Investor Day, although these worries eased following a CFO transition and some easing in membership cancellations. However, despite solid underlying fundamentals, favourable long-term health and wellness trends, and limited risk of AI disruption, the stock remained under pressure.

Elsewhere, Bloom Energy, which provides fuel-cell-based power systems for on-site power generation, was another key detractor. The stock was a beneficiary of the AI-driven momentum trade in the first half of 2026 and drove 6% of the Russell 2000's return alone as its market capitalisation surged from $20bn to nearly $100bn - a record for the index. While we owned a small position in Bloom Energy, our large underweight position throughout the period was a headwind to performance. We subsequently exited our position as its valuation became increasingly stretched and the stock exited the Russell 2000 index in the June rebalance.

On a more positive note, our stock selection in basic materials and technology stocks contributed to overall performance.

Within basic materials, our exposure to Element Solutions, a specialty chemicals company serving electronics and industrial end markets, proved beneficial as demand tied to AI applications continued to accelerate, driving strong growth in its electronics business. The company's earnings reports have consistently exceeded expectations supported by improving revenue and profitability trends. Management has also raised full-year 2026 guidance, while customer order activity remains healthy. Performance is being supported by advanced packaging, high-layer circuit boards, new product adoption, and successful integration of acquisitions, while the company's management has been increasingly confident about medium-term demand and expansion prospects.

Our exposure to MACOM Technology Solutions and Allegro MicroSystems were also among the top contributors at the stock level during the review period. MACOM Technology Solutions designs and manufactures semiconductors that enable the rapid transfer of data across data centres, telecom networks, and defence applications. The stock performed well as AI-driven demand continued to accelerate, leading to strong growth in its data centre business and better-than-expected earnings results. Management repeatedly raised its outlook, citing record customer bookings, solid demand for optical networking products, improving margins, stronger cash generation, and growing momentum in defence and satellite communications markets, all of which reinforced investors' conviction in the company's long-term growth trajectory. Allegro MicroSystems, a leading supplier of sensor and power management semiconductors for automotive, data centre, and industrial applications, performed well as investors became increasingly positive about its long-term prospects. The company delivered strong earnings results, with revenue, profitability, operating margins, and cash generation improving year-over-year. Growth was driven by continued strength in electric vehicle and advanced driver-assistance applications, increasing semiconductor content per vehicle, and rapidly expanding demand from AI-driven data centre infrastructure. Management also highlighted accelerating design wins, record backlog levels, improving demand trends, and a stronger long-term revenue outlook, fuelling confidence in the company's ability to sustain growth across its key end markets.

Portfolio Positioning

US smaller companies delivered strong absolute returns during the first half of 2026. We continue to believe that US smaller companies are an appealing asset class for long-term investors, as they include innovative businesses that serve market niches, providing early, attractively priced access to new ideas, products and services. Our investment philosophy remains focused on finding high-quality, cash-generative companies with durable franchises, good management teams and stable earnings that trade at a discount to their intrinsic value.

In response to the challenging investment environment of the past six months, we actively repositioned the portfolio. Specifically, we increased exposure to AI infrastructure and other businesses benefiting from data centre, power and industrial spending trends, while trimming lower-conviction stocks at risk of AI disruption. Market volatility also created opportunities to add to a number of high-conviction ideas, leading to the initiation of 30 new positions year-to-date. Beyond AI, we selectively added exposure to profitable technology and semiconductor equipment businesses benefiting from ongoing AI investment, consumer-oriented companies with compelling value propositions, niche industrial leaders with durable competitive advantages, and mission-critical safety and operational businesses trading at attractive valuations. We also increased exposure to cash-generative information and software businesses where we believe the market has overstated the potential impact of AI-related disruption.

We also selectively reduced positions where valuations had become extended. These actions moved the portfolio from an underweight to an overweight position in direct AI beneficiaries, reducing the portfolio's exposure to a narrow set of thematic outcomes, while maintaining our focus on profitable, high-quality companies that we believe are well-positioned if market leadership broadens beyond the narrow group of momentum-driven winners that dominated the first half of the year.

On both an absolute and relative basis, our most significant overweight remains in the industrial sector, with basic materials the next biggest overweight. Conversely, our most significant underweights are in the health care, consumer discretionary and real estate sectors - all areas where we struggle to find interesting investment opportunities.

Benchmark rebalancing

On a technical note, the Company's benchmark underwent a biannual rebalancing in June 2026 and the latest changes to the index's component stocks have been significant compared to previous rebalancings. The dramatic price moves experienced by some smaller cap stocks over the previous months, particularly those aligned to AI themes, meant that the market capitalisation of these companies grew sufficiently to ensure their graduation from the Russell 2000 Index into the Russell 1000 Index. As a result, the benchmark has become less-dominated by these themes, and the less-profitable companies aligned to them. The overall quality of the benchmark has therefore increased.

Market Outlook

We remain constructive on the outlook for US smaller cap equities. While recent market returns have been heavily influenced by a narrow group of AI-related stocks, improving earnings trends across cyclical industries suggest that sources of growth - and returns - are beginning to broaden out. Areas such as banks, industrial real estate, transportation, capital equipment and analog semiconductors have all experienced strengthening fundamentals, supported by resilient demand and improving economic activity. US small cap earnings are also expected to continue to grow at a slightly faster pace than those of large cap companies.

We believe this favourable earnings outlook creates an attractive environment for high-quality small cap businesses that have been overlooked as investors focused on a handful of AI winners. Improving manufacturing activity, robust corporate fundamentals and diminishing uncertainty could support an additional broadening of participation in market returns by companies with strong cash flows and durable business models.

Valuations further strengthen the investment case for smaller capitalisation stocks. High-quality smaller companies are trading at historically attractive levels, while the long-term relative performance of small caps versus large caps remains near historically depressed levels. This suggests a rebound in small caps is overdue. Combined with improving earnings prospects, a supportive economic environment, and a higher quality benchmark following the Russell 2000 rebalancing, we believe the asset class offers compelling long-term opportunities for patient investors.

For and on behalf of the

Investment Manager

Don San Jose

Jon Brachle

Dan Percella

Portfolio Managers                                                                                                                

INTERIM MANAGEMENT REPORT

The Company is required to make the following disclosures in its Half Year Report:

Principal and Emerging Risks and Uncertainties

The principal risks and uncertainties faced by the Company fall into the following broad categories: lack of demand for the Company's shares; hostile shareholder action, shareholder communication challenges, under-performance, outsourcing challenges, cyber-crime, investment team changes and market and economic risks. In addition, Artificial Intelligence was identified as an emerging risk. The Board continues to closely consider and monitor these risks. Information on each of these areas is given in the Strategic Report within the Annual Report and Financial Statements for the year ended 31st December 2025. It is the Board's view that these principal and emerging risks and uncertainties are as much applicable to the remaining six months of the financial year as they were to the six months under review.

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

In accordance with The Financial Reporting Council's guidance on going concern and liquidity risk, the Directors have undertaken a rigorous review of the Company's ability to continue as a going concern. The Board has, in particular, considered the impact of heightened market volatility since the Russian invasion of Ukraine and the unrest in the Middle East, including the risk of closure or disruption to the Strait of Hormuz and the potential implications for global supply chains, energy costs and inflation, together with the impact of ongoing tariffs and other geopolitical and financial risks. However, it does not believe the Company's going concern status is affected. The Company's assets, the vast majority of which are investments in quoted securities which are readily realisable, exceed its liabilities significantly under all stress test scenarios reviewed by the Board. Gearing levels and compliance with borrowing covenants are reviewed by the Board on a regular basis. Furthermore, the Directors are satisfied that the Company and its key third party service providers have in place appropriate business continuity plans. Accordingly, having assessed the principal and emerging risks and other matters, the Directors believe 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.

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 year 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 30th June 2026 as required by the 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 and 4.2.8R of the 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 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

Dominic Neary

Chair        

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

	(Unaudited)			(Unaudited)			(Audited)
	Six months ended			Six months ended			Year ended
	30th June 2026			30th June 2025			31st December 2025
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Net gains/(losses) on
investments held at fair value
through profit or loss	-	37,334	37,334	-	(38,798)	(38,798)	-	(35,610)	(35,610)
Net foreign currency exchange
(losses)/gains	-	(213)	(213)	-	1,517	1,517	-	1,301	1,301
Income from investments	1,424	-	1,424	1,837	-	1,837	3,422	-	3,422
Interest receivable	113	-	113	166	-	166	314	-	314
Gross return/(loss)	1,537	37,121	38,658	2,003	(37,281)	(35,278)	3,736	(34,309)	(30,573)
Management fee	(163)	(652)	(815)	(203)	(811)	(1,014)	(387)	(1,548)	(1,935)
Other administrative expenses	(302)	-	(302)	(259)	-	(259)	(610)	-	(610)
Net return/(loss) before finance
costs and taxation	1,072	36,469	37,541	1,541	(38,092)	(36,551)	2,739	(35,857)	(33,118)
Finance costs	(123)	(492)	(615)	(141)	(563)	(704)	(279)	(1,117)	(1,396)
Net return/(loss) before taxation	949	35,977	36,926	1,400	(38,655)	(37,255)	2,460	(36,974)	(34,514)
Taxation	(199)	-	(199)	(257)	-	(257)	(494)	-	(494)
Net return/(loss) after taxation	750	35,977	36,727	1,143	(38,655)	(37,512)	1,966	(36,974)	(35,008)
Net return/(loss) per ordinary
share (note 3)	1.44p	68.89p	70.33p	1.91p	(64.48)p	(62.57)p	3.39p	(63.77)p	(60.38)p

All revenue and capital items in the above statement derive from continuing operations.

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.

Net return/(loss) after taxation represents the profit/(loss) for the period/year and also the total comprehensive income for the period/year.

CONDENSED STATEMENT OF CHANGES IN EQUITY

	Called up	Share	Capital
	share	premium	redemption	Capital	Revenue
	capital	account	reserve	reserves1	reserve1	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Six months ended 30th June 2026 (Unaudited)
At 31st December 2025	1,635	45,758	1,854	176,912	4,075	230,234
Repurchase of ordinary shares into Treasury	-	-	-	(13,177)	-	(13,177)
Net return after taxation for the period	-	-	-	35,977	750	36,727
Dividends paid in the period (note 4)	-	-	-	-	(1,630)	(1,630)
At 30th June 2026	1,635	45,758	1,854	199,712	3,195	252,154
Six months ended 30th June 2025 (Unaudited)
At 31st December 2024	1,635	45,758	1,854	240,603	3,939	293,789
Repurchase of ordinary shares into Treasury	-	-	-	(9,197)	-	(9,197)
Net (loss)/return after taxation for the period	-	-	-	(38,655)	1,143	(37,512)
Dividends paid in the period (note 4)	-	-	-	-	(1,829)	(1,829)
At 30th June 2025	1,635	45,758	1,854	192,751	3,253	245,251
Year ended 31st December 2025 (Audited)
At 31st December 2024	1,635	45,758	1,854	240,603	3,939	293,789
Repurchase of ordinary shares into Treasury	-	-	-	(26,717)	-	(26,717)
Net (loss)/return after taxation for the year	-	-	-	(36,974)	1,966	(35,008)
Dividends paid in the year (note 4)	-	-	-	-	(1,830)	(1,830)
At 31st December 2025	1,635	45,758	1,854	176,912	4,075	230,234

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

CONDENSED STATEMENT OF FINANCIAL POSITION

	(Unaudited)	(Unaudited)	(Audited)
	At 30th June	At 30th June	At 31st December
	2026	2025	2025
	£'000	£'000	£'000
Fixed assets
Investments held at fair value through profit or loss	275,193	262,819	252,670
Current assets
Debtors	1,257	683	235
Current assets investments	5,754	9,682	1,168
Cash at bank	20	368	2,545
	7,031	10,733	3,948
Current liabilities
Creditors: amounts falling due within one year	(30,070)	(28,301)	(26,384)
Net current liabilities	(23,039)	(17,568)	(22,436)
Total assets less current liabilities	252,154	245,251	230,234
Net assets	252,154	245,251	230,234
Capital and reserves
Called up share capital	1,635	1,635	1,635
Share premium account	45,758	45,758	45,758
Capital redemption reserve	1,854	1,854	1,854
Capital reserves	199,712	192,751	176,912
Revenue reserve	3,195	3,253	4,075
Total shareholders' funds	252,154	245,251	230,234
Net asset value per ordinary share (note 5)	498.7p	421.2p	428.5p

CONDENSED STATEMENT OF CASH FLOWS

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended	Six months ended	Year ended
	30th June 2026	30th June 2025	31st December 2025
	£'000	£'000	£'000
Cash flows from operating activities
Net return/(loss) before finance costs and taxation	37,541	(36,551)	(33,118)
Adjustment for:
Net (gains)/losses on investments held at fair value through
profit or loss	(37,334)	38,798	35,610
Net foreign currency exchange losses/(gains)	213	(1,517)	(1,301)
Dividend income	(1,424)	(1,837)	(3,422)
Interest income	(113)	(166)	(314)
Net realised gains/(losses) on foreign currency exchange
transactions	33	(48)	(76)
Net realised foreign currency exchange gains/(losses) on
JPMorgan USD Liquidity Fund	54	(353)	(410)
Increase in other debtors	(3)	(28)	(7)
Increase/(decrease) in accrued expenses	1,646	1,828	(49)
Net cash inflow/(outflow) from operations before dividends,
interest and taxation	613	126	(3,087)
Dividends received	1,312	1,612	2,946
Interest received	113	166	314
Overseas withholding tax recovered	1	19	19
Net cash inflow from operating activities	2,039	1,923	192
Purchases of investments	(72,806)	(42,117)	(90,096)
Sales of investments	87,948	56,785	118,326
Net cash inflow from investing activities	15,142	14,668	28,230
Dividends paid	(1,630)	(1,829)	(1,830)
Repurchase of ordinary shares into Treasury	(12,919)	(8,763)	(26,616)
Drawdown of bank loan1	-	27,099	27,099
Repayment of bank loan1	-	(23,228)	(23,228)
Loan interest paid	(620)	(729)	(1,392)
Net cash outflow from financing activities	(15,169)	(7,450)	(25,967)
Increase in cash and cash equivalents	2,012	9,141	2,455
Cash and cash equivalents at start of period/year	3,713	1,275	1,275
Foreign currency exchange movements	49	(366)	(17)
Cash and cash equivalents at end of period/year	5,774	10,050	3,713
Cash and cash equivalents consist of:
Cash at bank	20	368	2,545
Investment in JPMorgan USD Liquidity Fund	5,754	9,682	1,168
Total	5,774	10,050	3,713

¹     Repayment and draw down of the bank loans are settled on a net basis.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the six months ended 30th June 2026.

1.  Financial statements

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

The figures and financial information for the year ended 31st December 2025 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 including the report of the auditor 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

FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting Council ('FRC') has been applied in preparing this condensed set of financial statements for the six months ended 30th June 2026.

The condensed financial statements have been prepared under the historical cost convention, modified to include fixed asset investments at fair value, and in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice (UK GAAP), including 'the Financial Reporting Standard applicable in the UK and Republic of Ireland' (FRS 102) 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 December 2025. 

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

The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least 12 months from the date of approval of these condensed financial statements. Accordingly, the Directors consider it appropriate to adopt the going concern basis of accounting in preparing these condensed financial statements. This conclusion takes into account the Director's assessment of the risks faced by the Company as detailed in the Interim Management Report in the Half Year Report.

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 December 2025.

3.  Net return/(loss) per ordinary share

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended	Six months ended	Year ended
	30th June	30th June	31st December
	2026	2025	2025
	£'000	£'000	£'000
Net return/(loss) per ordinary share is based on the following:
Revenue return	750	1,143	1,966
Capital return/(loss)	35,977	(38,655)	(36,974)
Total return/(loss)	36,727	(37,512)	(35,008)
Weighted average number of ordinary shares in issue (excluding shares held in Treasury)	52,220,528	59,950,192	57,978,084
Revenue return per ordinary share	1.44p	1.91p	3.39p
Capital return/(loss) per ordinary share	68.89p	(64.48)p	(63.77)p
Total return/(loss) per ordinary share	70.33p	(62.57)p	(60.38)p

4.  Dividends paid

	(Unaudited)		(Unaudited)		(Audited)
	Six months ended		Six months ended		Year ended
	30th June 2026		30th June 2025		31st December 2025
	Pence	£'000	Pence	£'000	Pence	£'000
Dividend paid
Final dividend in respect of prior year	3.20	1,630	3.10	1,829	3.10	1,830
Total dividends paid in the period/year	3.20	1,630	3.10	1,829	3.10	1,830

The dividend paid in the period/year has been funded from the revenue earnings.

No interim dividend has been declared in respect of the six months ended 30th June 2026 (2025: nil).

5. Net asset value per ordinary share

The net asset value per ordinary share and the net asset value attributable to the ordinary shares at the period/year end are shown below. These were calculated using 50,565,193 (30th June 2025: 58,219,730; 31st December 2025: 53,735,306) ordinary shares in issue at the period/year end (excluding shares held in Treasury).

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended	Six months ended	Year ended
	30th June	30th June	31st December
	2026	2025	2025
Net assets (£'000)	252,154	245,251	230,234
Number of ordinary shares in issue	50,565,193	58,219,730	53,735,306
Net asset value per ordinary share	498.7p	421.2p	428.5p

6.  Fair valuation of instruments

The fair value hierarchy analysis for financial instruments held at fair value at the period end is as follows:

	(Unaudited)		(Unaudited)		(Audited)
	Six months ended		Six months ended		Year ended
	30th June 2026		30th June 2025		31st December 2025
	Assets	Liabilities	Assets	Liabilities	Assets	Liabilities
	£'000	£'000	£'000	£'000	£'000	£'000
Level 1	275,193	-	262,819	-	252,670	-
Level 21	5,754	-	9,682	-	1,168	-
Total value of investments	280,947	-	272,501	-	253,838	-

¹     Consists of the current asset investment in JPMorgan USD Liquidity Fund.

7.  Analysis of changes in (net debt)/net cash

			Foreign
	As at		currency exchange	As at
	31st December 2025	Cash flows	movements	30th June 2026
	£'000	£'000	£'000	£'000
Cash and cash equivalents
Cash at bank	2,545	(2,521)	(4)	20
Investment in JPMorgan USD Liquidity Fund	1,168	4,533	53	5,754
	3,713	2,012	49	5,774
Borrowings
Debt due within one year1	(26,021)	-	(349)	(26,370)
Net borrowings	(26,021)	-	(349)	(26,370)
(Net debt)/net cash	(22,308)	2,012	(300)	(20,596)

¹     On 14th March 2025 the Company renewed its loan facility with a new loan provider, Bank of America. Under the terms of this current agreement,      the Company may draw down up to US$40 million loan facility (including an accordion facility of US$5 million), at an interest rate of compounded SOFR plus a margin of 1.00% (Dollar denominated loans). The new facility is a 360 day evergreen facility. As at 30th June 2026 and 31st December 2025, US$35 million was drawn down.

JPMORGAN FUNDS LIMITED

16 September 2026

For further information, please contact:

Priyanka Vijay Anand

For and on behalf of

JPMorgan Funds Limited

Telephone: [phone] or or [phone]

E-mail: [e-mail]

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

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

 

END