JPMorgan American Investment Trust PLC

Quarterly Report • Jun 30, 2019

JPMorgan American Investment Trust plc

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Half Year Report & Financial Statements for the six months ended 30th June 2019

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Your Company

Investment Objective

To achieve capital growth from North American investments by outperformance of the Company's benchmark.

Investment Policies

• To invest in North American quoted companies including, when appropriate, exposure to smaller capitalisation companies.
• To emphasise capital growth rather than income.

Gearing Policy

• To use short and long term gearing to increase potential returns to shareholders. The Company's gearing policy is to operate within a range of 5% net cash to 20% geared in normal market conditions. Within this range, the Board reviews and sets a strategic gearing level, which is currently 10%, plus or minus 2%. The Manager is accountable for managing the gearing around a tactical gearing level, taking account of shorter term potential market risks and returns. The current tactical level is 0%, plus or minus 2%.

• Until the maturity of the Company's £50 million debenture on 8th June 2018, hedging was in place to manage currency risk.

Benchmark Index

The S&P 500 Index, net of appropriate withholding tax, expressed in sterling total return terms.

Capital Structure

As at 30th June 2019, the Company's share capital comprised 281,633,910 ordinary shares of 5p each, including 67,175,474 shares held in Treasury.

Until 8th June 2018, the Company had a £50 million debenture in issue, carrying a fixed interest rate of 6.875%, per annum. The Company currently has two floating rate debt facilities totalling £65 million, expiring in April 2020 and August 2022, with the option of further increasing the August 2022 facility by £40 million. When utilised, the facilities are drawn in US dollars.

Management Fee

The management fee is charged on a tiered basis as follows:

• 0.35% on the first £500 million of net assets;
• 0.30% on net assets above £500 million and up to £1 billion; and
• 0.25% on any net assets above £1 billion.

With effect from 1st June 2019, for a period of nine months, the management fee is waived. Please refer to the Chair's Statement for more information.

Management Company

The Company employs JPMorgan Funds Limited ('JPMF' or the 'Manager') as its Alternative Investment Fund Manager. JPMF delegates the management of the Company's portfolio to JPMorgan Asset Management (UK) Limited ('JPMAM') which further delegates the management to JPMorgan Asset Management, Inc. All of these entities are wholly owned subsidiaries of J.P. Morgan Chase & Co.

Financial Conduct Authority ('FCA') regulation of 'non-mainstream pooled investments' and MiFID II 'complex instruments'

The Company currently conducts its affairs so that the shares issued by the Company can be recommended by independent financial advisers to ordinary retail investors in accordance with the FCA's rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future.

The shares are excluded from the FCA's restrictions which apply to non-mainstream investment products because they are shares in an investment trust.

Association of Investment Companies ('AIC')

The Company is a member of the AIC.

Website

The Company's website, which can be found at www.jpmamerican.co.uk, includes useful information on the Company, such as daily prices, factsheets and current and historic half year and annual reports.

Half Year Performance

3 Financial Highlights

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Chair's Statement

6 Chair's Statement

Investment Review

• 9 Investment Managers' Report
• 12 Portfolio Information

Financial Statements

• 16 Statement of Comprehensive Income
• 17 Statement of Changes in Equity
• 18 Statement of Financial Position
• 19 Statement of Cash Flows
• 20 Notes to the Financial Statements

Interim Management 24 Report

Shareholder Information

• 26 Glossary of Terms and Alternative Performance Measures ('APMs')
• 28 Where to Buy J.P. Morgan Investment Trusts
• 29 Information About the Company

Half Year Performance

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F

H

TOTAL RETURNS (INCLUDING DIVIDENDS REINVESTED)

TO 30TH JUNE 2019

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¹ Source: Morningstar.

² Source: Morningstar/J.P. Morgan, using cum income net asset value per share, with debt at fair value.

³ The Company's benchmark is the S&P 500 Index, net of the appropriate withholding tax, expressed in sterling total return terms.

4Annualised returns calculated on a geometric basis. Six month returns are not annualised.

APM Alternative Performance Measure ('APM').

A glossary of terms and APMs is provided on pages 26 and 27.

SUMMARY OF RESULTS

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	30th June 2019	31st December 2018	% change
Shareholders' funds (£'000)	1,031,142	919,176	+12.2
Shares in issue (excluding shares held in Treasury)1	214,458,436	218,480,648	–1.8
Net asset value per share	480.8p	420.7p	+14.32
Share price	457.5p	399.0p	+14.73
Share price discount to net asset value per shareAPM	4.8%	5.2%
Net cashAPM	(1.5)%	(1.0)%
Ongoing ChargesAPM	0.18%	0.38%
Exchange rate	1 = 1.2727 £ \$	1 = 1.2736 £ \$

¹ Excluding 67,175,474 (31st December 2018: 63,153,262) shares held in Treasury.

² % change, excluding dividends paid. Including dividends the returns would be +15.3%.

³ % change, excluding dividends paid. Including dividends the returns would be +15.7%.

APM Alternative Performance Measure ('APM').

A glossary of terms and APMs is provided on pages 26 and 27.

Chair's Statement

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Dr Kevin Carter Chair

New Investment Process and Investment Policy

Following approval from shareholders at the Company's Annual General Meeting ('AGM') in May, JPMorgan Asset Management ('the Manager') began the process of transitioning the portfolio to comply with the Company's new investment strategy at the end of May. By early June, the new higher conviction portfolio was in place, with the number of stocks in the large-cap portfolio reducing to 40 stocks. The rationale for amending the Company's investment process, together with full details of the new strategy, was set out in detail in my statement to accompany the Company's results for the year ended 31st December 2018. For ease of reference, I have summarised below the salient points:

C

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• The Manager notified the Board in October 2018 that Garrett Fish, the longstanding manager of the Company, would be moving to new responsibilities at the Manager.
• Throughout the last quarter of 2018 until May 2019, the Board undertook a review of the options available from the range of strategies offered by the Manager for the large-cap portfolio, with the aim of identifying an investment strategy that offered the prospect of attractive returns for the Company, while maintaining its 'core' US exposure.
• The Board proposed, which was subsequently approved by shareholders at the AGM in May, that the large-cap component of the Company adopt a higher-conviction approach combining the best ideas from the Manager's growth and value investment teams.
• The transition of the portfolio to the new strategy resulted in \$1.68 billion of trading, with all but one stock traded over a period of three days. The trades represented, on average, approximately 4.5% of the daily traded volumes of the applicable stocks.
• The new strategy, managed by Jonathan Simon and Tim Parton and described by the Manager as 'Equity Focus' with over \$2.3 billion under management, uses an unconstrained bottom-up approach to build a portfolio of approximately 30 – 40 high quality companies across the value and growth spectrum.
• Alongside the change in investment process, and to simplify the Company's fee offering, the performance fee element of the Manager's remuneration was removed. The Manager also agreed to the waiver of management fees, running for nine months from 1st June 2019, and to meet the transition costs incurred in the realignment of the portfolio.
• The Company's flexibility to invest a component of its asset base in a portfolio of small-cap equities managed by Eytan Shapiro is unchanged, as is the ability to use gearing to enhance returns in accordance with the current investment policy.

The Board welcomes Jonathan and Tim as the Company's portfolio managers and looks forward to working with them. Since the new investment process has only been in place for just over two months, it is clearly too early to comment upon performance. The Board will be reviewing performance closely over the coming year.

Performance

In the six months to 30th June 2019, the total return on net assets per share in sterling terms was +15.3%. The return to Ordinary shareholders per share in sterling terms was +15.7%, reflecting a small narrowing of the Company's discount to net asset value per share ('NAV') at which it traded at the end of the period. The total return from the Company's benchmark, the S&P 500 Index in sterling terms, was +18.4%.

Share price and Discount Management

The Company's shares have traded at a discount to the NAV throughout the period under review and the Company has continued to buy back its shares in line with the Board's commitment to its shareholders to buy shares back when they stand at anything more than a small discount to NAV. The Company bought into Treasury a total of 4,022,212 shares or 1.8% of the Company's issued share capital at the beginning of 2019 (30th June 2018: 3.4%). These shares were purchased at an average discount to NAV of 5.1%, producing a modest accretion to the NAV for continuing shareholders.

Dividend

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As highlighted to shareholders in my year end statement, the Company's new investment policy is likely to reduce the revenue per share generated by the portfolio. Net revenue for the full year ending 31st December 2019 is estimated to be lower than in 2018. Whilst capital growth is the primary aim of the Company, the Board is aware that dividend receipts can be an important element of shareholder returns. In the absence of unforeseen circumstances the Board is aiming to pay out a total dividend for the financial year of at least 6.5 pence per share, unchanged from that paid in respect of the 2018 financial year.

The Company is declaring a dividend of 2.5 pence per share (2018: 2.5 pence) for the first six months of this year, which will be payable on 4th October 2019 to shareholders on the register on 30th August 2019.

Gearing

The Company's gearing strategy is implemented through the use of bank borrowing facilities, with the Company currently having access to two loan facilities totalling £65 million, expiring in April 2020 and August 2022, with the option of further increasing the August 2022 facility by £40 million. The Company is presently considering longer term gearing opportunities and will report any actions taken to shareholders.

The Company's gearing policy is to operate within a range of 5% net cash to 20% geared in normal market conditions, with the present strategic level being set at 10% plus or minus 2%. In October 2018, this tactical gearing was amended in the light of market conditions, to a gearing level of 0%, plus or minus 2%, where it currently remains. The Manager has a gearing tool in place and provides gearing recommendations to the Board on a monthly basis based upon the signals arising from the tool. As was the case in June and October 2018, the Company will make an announcement of any material changes in its tactical gearing level.

Outlook

As 2019 began the US Federal Reserve performed an about turn on its expectations for short term interest rates, reversing its proposed increases in 2019, to expected cuts. This provided considerable cheer to the stock market which rose strongly in the first quarter. During the period under review the US entered its longest period of economic expansion – 121 months of GDP growth, eclipsing the 120 months from 1991 to 2001.

The length of this economic expansion coupled with an inverted interest rate yield curve in which short rates are higher than longer term rates, suggests at least a material slowdown or possible recession lie ahead. Presumably this is what the Federal Reserve is now weighing more highly in its policy outlook, along with lingering global trade issues, and some festering geopolitical concerns.

Stock market investors need to balance the still healthy corporate sector with these time honoured signals for caution. The Board is hopeful that the new investment approach of selecting a more concentrated portfolio of first rate value and growth companies will be resilient in the developing market environment, while having the potential for attractive returns over the medium term.

Dr Kevin Carter Chair 14th August 2019

Investment Review

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I

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Timothy Parton

Jonathan Simon

Market Review

Having taken on the management of the Company's large-cap portfolio on 1st June 2019, the half-year to 30th June 2019 presents our first opportunity to describe performance and our approach to portfolio management to shareholders.

The S&P 500 Index had a strong but volatile first half of the year, posting an 18.4% return after an initial rise, a fall in May, and a rebound over the month of June. All sectors of the Index delivered positive returns, with the information technology and real estate sectors leading the charge, increasing 27.0% and 23.2%, respectively. On the other hand, health care and energy were the laggards, posting returns of 9.6% and 10.8%.

Over the course of 2018 the price earnings (P/E) ratio on the S&P 500 had fallen from over 18x at the year's outset to 14x by the year end reflecting a considerable amount of risk and uncertainty being priced into the market. January's recovery, therefore, suggested investors were taking more account of the still relatively positive economic and earnings backdrop. Volatility escalated in May in response to increased tensions surrounding tariffs between the US and China and proposed US tariffs on Mexico. Investors looked to reduce risks in their portfolios given these new developments in the trade narrative and signs of slower economic growth globally, despite the fact that the domestic US earnings backdrop remained positive. As we moved to the end of the period under review, the market rebounded and achieved new market highs in June, fuelled by expectations of a more dovish outlook from the Fed alongside increased hopes of a trade deal between the US and China at the G20 summit.

Large-cap stocks as represented by the S&P 500 Index outperformed the small-cap Russell 2000 Index, returning 18.5% and 17.0%, respectively. Both growth and value stocks rose in the first half of the year as well, with value underperforming relative to growth as demonstrated by rises of 16.1% in the Russell 3000 Value Index and 21.4% in the Russell 3000 Growth Index. The construction of the large-cap portfolio allocates between value and growth stocks, with the allocation allowed to vary between 60:40 and 40:60. At the period end, value stocks comprised some 53% of the large-cap portfolio and growth stocks comprised the remaining 47%.

Performance

The Company's net asset value rose by 15.3% in total return terms over the first six months of 2019. The return was below the benchmark, the S&P 500, which rose 18.4% in sterling terms. The large-cap portion of the Company underperformed, while the small-cap portfolio generated a positive contribution to performance. The allocation of the Company's portfolio to the small-cap portfolio was increased at the beginning of the period to approximately 2.7%, with a further transfer in June bringing our closing allocation to small-cap equities up to 4.0%.

Given the market concerns at this stage in the cycle, the Company did not deploy gearing during the period. With the rising market environment in the first six months of 2019, this decision saw us forego the opportunity to earn higher returns. In May, the large-cap component of the Company transitioned to our higher conviction approach combining the best ideas from the value and growth investment teams.

Looking at relative performance, our stock selection proved challenging during the period with our stock selection in the information technology and energy sectors generating the strongest headwinds to relative performance.

Within the information technology sector, our lack of exposure to MasterCard for some of the period under review featured among the largest detractors. The company's shares rallied during the period after they reported quarterly results that were better than expected and marked by continued resilient underlying volume growth. Given the long term shift from cash to cards and digital payments, high incremental margins, and the long term opportunity in business (B2B) payments, we have now initiated a position in this stock, finishing the period with an overweight allocation.

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With regards to the energy sector, our exposure to Conoco Phillips and Marathon Petroleum also detracted from performance during the period. Conoco Phillips' share price traded lower and as we expect an increase in capital expenditure after 2020 to reduce the free cash flow, which might result in lower growth, we sold out of our position in the company. As for Marathon Petroleum, the stock fell due to real and perceived problems in integrating the Andeavor business it acquired in 2018. However, we continue to hold the stock, reflecting our positive view on the company's large-scale, complex refining and logistics systems.

At the individual stock level, our overweight in the consumer staples name Walgreens Boots Alliance (Walgreens) was the largest detractor. Facing pressures on both its retail and medical reimbursement businesses, the company missed consensus estimates. While pressures associated with the changing landscape in both of these market segments are likely to persist, and management has been caught somewhat off-guard, we do not see much downside from here. Despite the controversy in the

PERFORMANCE ATTRIBUTION

FOR THE SIX MONTHS ENDED 30TH JUNE 2019

	%	%
Contributions to total returns
Net asset value total return (in sterling terms)APM Benchmark total return (in sterling terms) Excess return		15.3
		18.4
		–3.1
Contributions to total returns
Large-cap portfolio		–2.9
Allocation effect	–0.1
Selection effect	–2.8
Small-cap portfolio		0.2
Allocation effect	0.2
Selection effect	—
Gearing		–0.3
Share issuance/buyback		0.1
Management fee/expenses		–0.2
Total		–3.1

Source: JPMAM and Morningstar. All figures are on a total return basis.

Performance attribution analyses how the Company achieved its recorded performance relative to its benchmark index.

APM Alternative Performance Measure ('APM').

A glossary of terms and APMs is provided on pages 26 and 27.

marketplace, we think a slimmed down version of Walgreens consisting of pharmacy, health, beauty and wellness, and some convenience can work.

In contrast, our stock selection in the financials and consumer discretionary sectors contributed positively. Within financials, our overweight position in AIG was the largest contributor as it reported earnings and revenue above analysts' expectations. The company posted its first underwriting profit since the financial crisis and expects an underwriting profit for the full year 2019. Continued expense discipline and reinsurance activity also contributed to positive results. We have increased confidence in AIG's management team, who should drive insurance margin improvements through better risk selection and aggregation.

Within consumer discretionary, our position in Chipotle Mexican Grill proved beneficial. The company reported strong quarterly earnings reflecting higher comparable sales and better-than-expected margins. We sold the position following this good news as we believe any future incremental margin improvement would be difficult to achieve.

Despite the weakened contribution from our holdings in information technology, the top contributor to the portfolio's performance at the security level was our overweight position in Microsoft. The company reported solid earnings, raised future earnings guidance and appears to be firing on all cylinders. Importantly, the company has a steady subscription-based revenue stream, a diversified product mix, and a strong competitive position in cloud computing through its Azure business. In addition to a healthy dividend, we feel confident in Microsoft's management team, which should deliver sustained growth and margin expansion going forward.

With regards to portfolio positioning at the period end, the Company is most overweight in the financials, materials and real estate sectors. Within materials, we have found a lot of names with more defensive characteristics such as Ball in the packaging sector. The Company's biggest underweights are in the consumer staples, health care and communication services sectors, where a combination of challenging business prospects and relatively high valuations give rise to fewer opportunities.

Market Outlook

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We continue to focus on the fundamentals of the economy and of company earnings. Our analysts' estimate for S&P 500 earnings currently projects 3% growth for 2019 and 10% growth for 2020. While subject to revision, this forecast reflects our expectations for modest expansion in the underlying economy and includes our best analysis of earnings expectations for this year. However developments in global trade will remain key to investor sentiment and so will likely continue to contribute to market uncertainty.

While continued earnings growth should provide support to the equity market, we are monitoring the incremental risks that could represent future headwinds for U.S. stocks. In particular, we continue to watch closely the state of trade relations, movements in global economic growth, and the implications of Fed policy, all of which have the potential to heighten volatility.

Timothy Parton Jonathan Simon

F

Investment Managers 14th August 2019

TEN LARGEST EQUITY INVESTMENTS

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		30th June 2019 31st December 2018 Valuation Valuation
Company	Sector	£'000	%1	£'000	%1
Microsoft	Information Technology	69,569	6.9	46,994	5.2
Amazon.com2	Consumer Discretionary	49,000	4.8	4,958	0.5
UnitedHealth	Health Care	39,158	3.9	23,457	2.6
Mastercard3	Information Technology	38,420	3.8	—	—
Capital One Financial2	Financials	36,805	3.6	8,863	1.0
Lowe's2	Consumer Discretionary	36,129	3.6	17,364	1.9
Alphabet2	Communication Services	33,620	3.3	15,601	1.7
Delta Air Lines2	Industrials	32,701	3.2	12,455	1.4
Kinder Morgan3	Energy	32,658	3.2	—	—
AutoZone3	Consumer Discretionary	32,334	3.2	—	—
Total		400,394	39.5

P

¹ Based on total investments of £1,015.3m (2018: £910.4m).

² Not included in the ten largest equity investments at 31st December 2018.

³ Not included in the total investments at 31st December 2018.

At 31st December 2018 the value of the ten largest equity investments amounted to £281.1 million representing 30.9% of total investments.

LIST OF INVESTMENTS AT 30TH JUNE 2019

Valuation

Company	£'000

LARGE COMPANIES

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These are generally defined as companies which have a market capitalisation of more than \$3 billion.

Microsoft	69,569
Amazon.com	49,000
UnitedHealth	39,158
Mastercard	38,420
Capital One Financial	36,805
Lowe's	36,129
Alphabet	33,620
Delta Air Lines	32,701
Kinder Morgan	32,658
AutoZone	32,334
Federal Realty Investment Trust	31,739
Apple	31,560
Pfizer	30,565
Martin Marietta Materials	30,245
American International	28,475
Public Storage	27,894
Xcel Energy	26,979
Marathon Petroleum	24,227
Waste Connections	23,614
Bank of America	23,471
Packaging of America	20,621
Ball	19,547
T Rowe Price	19,402
Charles Schwab	19,071
S&P Global	19,067
salesforce.com	18,466
ServiceNow	18,017
Take-Two Interactive Software	17,609
Intuitive Surgical	17,506
Kohl's	16,370
Walgreens Boots Alliance	16,358
Stanley Black & Decker	15,875
DISH Network	14,497
PayPal	14,450
Spotify Technology	13,977

Company	Valuation £'000
QUALCOMM	10,277
Parker-Hannifin	10,202
Concho Resources	9,942
Vertex Pharmaceuticals	8,095
DexCom	7,529
	986,041

SMALL COMPANIES

These are generally defined as companies which, at the date of investment, have a market capitalisation of less than \$3 billion. The investments within the Small Companies portfolio are listed separately as they are managed as a discrete portfolio.

Performance Food	536
Envestnet	525
National Vision	478
Teladoc Health	472
John Bean Technologies	472
Generac	469
Inphi	448
MKS Instruments	429
Bright Horizons Family Solutions	420
Entegris	407
MSA Safety	404
Boyd Gaming	400
Monolithic Power Systems	399
Amedisys	394
Insulet	382
Wolverine World Wide	381
Pool	376
Simpson Manufacturing	374
Advanced Drainage Systems	369
Wix.com	366
Trex Co	364
Horizon Therapeutics	360
ITT	356
Zscaler	353
Proofpoint	352
Evercore	350

Company	Valuation £'000
Saia	345
New York Times	341
Semtech	335
ManTech International	332
Hexcel	328
iRhythm Technologies	324
Halozyme Therapeutics	321
Ollie's Bargain Outlet	319
Coherus Biosciences	316
Lithia Motors	314
Anaplan	312
FibroGen	311
Ciena	306
Smartsheet	303
Array BioPharma	303
SiteOne Landscape Supply	295
Rush Enterprises	294
Hudson	292
Freshpet	290
Planet Fitness	289
Applied Industrial Technologies	287
Nevro	282
Pluralsight	277
Zendesk	277
Texas Roadhouse	273
Graco	271
World Wrestling Entertainment	267
Tricida	265
Winnebago Industries	265
Coupa Software	254
Biohaven Pharmaceutical	248
Farfetch	246
Fox Factory	245
Chart Industries	245
Oshkosh	243
SailPoint Technologies	241
Red Rock Resorts	229
Littelfuse	228
HubSpot	221

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Company	Valuation £'000
H&E Equipment Services	219
REGENXBIO	217
First Financial Bankshares	214
CyberArk Software	210
Twist Bioscience	210
Ferro	207
G1 Therapeutics	198
MongoDB	197
Elastic	194
Signature Bank	194
Intercept Pharmaceuticals	193
Adverum Biotechnologies	191
Acadia Healthcare	182
CubeSmart	167
Sage Therapeutics	165
Floor & Decor	159
Homology Medicines	156
RingCentral	152
TRI Pointe	149
Pagerduty	148

Company	Valuation £'000
Kirby	144
Primo Water	144
Webster Financial	140
Heron Therapeutics	138
RE	137
Glu Mobile	133
American Eagle Outfitters	131
ACADIA Pharmaceuticals	130
Atara Biotherapeutics	130
Revance Therapeutics	128
Etsy	128
LivaNova	117
Highwoods Properties	117
Axos Financial	113
TherapeuticsMD	113
GrubHub	113
New Relic	112
Evolent Health	111
Grocery Outlet	111
Avrobio	106

Company	Valuation £'000
Sciplay	102
Trade Desk	102
Shockwave Medical	95
PennantPark Investment	88
Global Blood Therapeutics	83
Centennial Resource Development	81
Adaptive Biotechnologies	79
Personalis	78
National Health Investors	73
Optinose	71
RealReal	71
Rubius Therapeutics	64
Portola Pharmaceuticals	62
Bridgebio Pharma	58
EastGroup Properties	55
Spark Therapeutics	44
Terreno Realty	43
Bellicum Pharmaceuticals	26
	29,263
TOTAL INVESTMENTS	1,015,304

Financial Statements

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FOR THE SIX MONTHS ENDED 30TH JUNE 2019

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	(Unaudited) Six months ended 30th June 2019		(Unaudited) Six months ended 30th June 2018		(Audited) Year ended 31st December 2018
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Gains/(losses) on investments held at fair value through
profit or loss	—	130,077	130,077	—	33,533	33,533	—	(5,050)	(5,050)
Net foreign currency losses Income from investments	— 11,458	(162) —	(162) 11,458	— 10,020	(2,568) —	(2,568) 10,020	— 21,184	(2,939) —	(2,939) 21,184
Interest receivable	142	—	142	156	—	156	452	—	452
Gross return/(loss) Management fee Other administrative expenses	11,600 (230) (328)	129,915 (919) —	141,515 (1,149) (328)	10,176 (304) (299)	30,965 (1,216) —	41,141 (1,520) (299)	21,636 (638) (637)	(7,989) (2,553) —	13,647 (3,191) (637)
Net return/(loss) on ordinary activities before finance costs and taxation Finance costs	11,042 (9)	128,996 (36)	140,038 (45)	9,573 (475)	29,749 (1,900)	39,322 (2,375)	20,361 (649)	(10,542) (2,593)	9,819 (3,242)
Net return/(loss) on ordinary activities before taxation Taxation	11,033 (1,630)	128,960 —	139,993 (1,630)	9,098 (1,062)	27,849 —	36,947 (1,062)	19,712 (2,462)	(13,135) —	6,577 (2,462)
Net return/(loss) on ordinary activities after taxation	9,403	128,960	138,363	8,036	27,849	35,885	17,250	(13,135)	4,115
Return/(loss) per share (note 3)	4.34p	59.56p	63.90p	3.54p	12.28p	15.82p	7.71p	(5.87)p	1.84p

The interim dividend declared in respect of the six months ended 30th June 2019 amounts to 2.5p (2018: 2.5p) per share, costing £5,361,000 (2018: £5,536,000).

All revenue and capital items in the above statement derive from continuing operations. The return per share represents the profit per share for the period and also the total comprehensive income per share.

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.

F

FOR THE SIX MONTHS ENDED 30TH JUNE 2019

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	Called up		Capital
	share	Share	redemption	Capital	Revenue
	capital	premium	reserve	reserves1	reserve1	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Six months ended 30th June 2019 (Unaudited)
At 31st December 2018	14,082	151,850	8,151	715,376	29,717	919,176
Repurchase of shares into Treasury	—	—	—	(17,740)	—	(17,740)
Net return on ordinary activities	—	—	—	128,960	9,403	138,363
Dividends paid in the period (note 4)	—	—	—	—	(8,657)	(8,657)
At 30th June 2019	14,082	151,850	8,151	826,596	30,463	1,031,142
Six months ended 30th June 2018 (Unaudited)
At 31st December 2017	14,082	151,850	8,151	781,018	25,329	980,430
Repurchase of shares into Treasury	—	—	—	(31,694)	—	(31,694)
Net return on ordinary activities	—	—	—	27,849	8,036	35,885
Dividends paid in the period (note 4)	—	—	—	—	(7,326)	(7,326)
At 30th June 2018	14,082	151,850	8,151	777,173	26,039	977,295
Year ended 31st December 2018 (Audited)
At 31st December 2017	14,082	151,850	8,151	781,018	25,329	980,430
Repurchase of shares into Treasury	—	—	—	(52,507)	—	(52,507)
Net (loss)/return on ordinary activities	—	—	—	(13,135)	17,250	4,115
Dividends paid in the year (note 4)	—	—	—	—	(12,862)	(12,862)
At 31st December 2018	14,082	151,850	8,151	715,376	29,717	919,176

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

AT 30TH JUNE 2019

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	(Unaudited) 30th June 2019 £'000	(Unaudited) 30th June 2018 £'000	(Audited) 31st December 2018 £'000
Fixed assets
Investments held at fair value through profit or loss	1,015,304	1,027,531	910,438
Current assets
Derivative financial assets	—	3	—
Debtors	5,974	716	1,334
Cash and cash equivalents	18,209	8,640	7,919
	24,183	9,359	9,253
Current liabilities
Creditors: Amounts falling due within one year	(8,345)	(40,659)	(515)
Net current assets/(liabilities)	15,838	(31,300)	8,738
Total assets less current liabilities	1,031,142	996,231	919,176
Creditors: Amounts falling due after more than one year	—	(18,936)	—
Net assets	1,031,142	977,295	919,176
Capital and reserves
Called up share capital	14,082	14,082	14,082
Share premium	151,850	151,850	151,850
Capital redemption reserve	8,151	8,151	8,151
Capital reserves	826,596	777,173	715,376
Revenue reserve	30,463	26,039	29,717
Shareholders' funds	1,031,142	977,295	919,176
Net asset value per share (note 5)	480.8p	438.0p	420.7p

F

FOR THE SIX MONTHS ENDED 30TH JUNE 2019

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	(Unaudited)	(Unaudited)	(Audited)
	30th June 2019 £'000	30th June 2018 £'000	31st December 2018 £'000
Net cash outflow from operations before dividends
and interest (note 6)	(1,042)	(2,165)	(2,158)
Dividends received	10,334	9,063	18,160
Interest received	91	139	470
Overseas tax recovered	9	131	347
Interest paid	(30)	(2,567)	(3,479)
Net cash inflow from operating activities	9,362	4,601	13,340
Purchases of investments	(803,459)	(180,873)	(391,851)
Sales of investments	830,770	257,491	546,604
Settlement of forward currency contracts	(42)	466	21
Net cash inflow from investing activities	27,269	77,084	154,774
Dividends paid	(8,657)	(7,326)	(12,862)
Repayment of bank loans	—	—	(58,914)
Repurchase of shares into Treasury	(17,684)	(29,399)	(52,107)
Repayment of debenture	—	(50,000)	(50,000)
Net cash outflow from financing activities	(26,341)	(86,725)	(173,883)
Increase/(decrease) in cash and cash equivalents	10,290	(5,040)	(5,769)
Cash and cash equivalents at start of period	7,919	13,689	13,689
Exchange movements	—	(9)	(1)
Cash and cash equivalents at end of period	18,209	8,640	7,919
Increase/(decrease) in cash and cash equivalents	10,290	(5,040)	(5,769)
Cash and cash equivalents consist of:
Cash and short term deposits	232	16	53
Cash held in JPMorgan US Dollar Liquidity Fund	17,977	8,624	7,866
Total	18,209	8,640	7,919

FOR THE SIX MONTHS ENDED 30TH JUNE 2019

1. Financial statements

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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 December 2018 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 auditors which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.

2. Accounting policies

The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' of the United Kingdom Generally Accepted Accounting Practice ('UK GAAP') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the revised 'SORP') issued by the Association of Investment Companies in November 2014 and updated in February 2018.

FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting Council ('FRC') in March 2015 has been applied in preparing this condensed set of financial statements for the six months ended 30th June 2019.

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 December 2018.

3. Return per share

	(Unaudited) Six months ended 30th June 2019 £'000	(Unaudited) Six months ended 30th June 2018 £'000	(Audited) Year ended 31st December 2018 £'000
Return per share is based on the following:
Revenue return	9,403	8,036	17,250
Capital return/(loss)	128,960	27,849	(13,135)
Total return	138,363	35,885	4,115
Weighted average number of shares in issue	216,521,491	226,737,244	223,635,390
Revenue return per share	4.34p	3.54p	7.71p
Capital return/(loss) per share	59.56p	12.28p	(5.87)p
Total return per share	63.90p	15.82p	1.84p

F

4. Dividends paid

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	(Unaudited) Six months ended 30th June 2019 £'000	(Unaudited) Six months ended 30th June 2018 £'000	(Audited) Year ended 31st December 2018 £'000
Final dividend in respect of the year ended 31st December 2018 of 4.0p (2017: 3.25p) Interim dividend paid in respect of the six months ended 30th June 2018 of 2.5p	8,657 —	7,326 —	7,326 5,536
Total dividends paid in the period/year	8,657	7,326	12,862

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

5. Net asset value per share

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended	Six months ended	Year ended
	30th June 2019	30th June 2018	31st December 2018
Net assets (£'000)	1,031,142	977,295	919,176
Number of shares in issue	214,458,436	223,125,492	218,480,648
Net asset value per share	480.8p	438.0p	420.7p

6. Reconciliation of net return on ordinary activities before finance costs and taxation to net cash outflow from operations before dividends and interest

	(Unaudited) Six months ended 30th June 2019 £'000	(Unaudited) Six months ended 30th June 2018 £'000	(Audited) Year ended 31st December 2018 £'000
Net return on ordinary activities before finance costs
and taxation	140,038	39,322	9,819
Less capital (return)/loss on ordinary activities before
finance costs and taxation	(128,996)	(29,749)	10,542
Decrease/(increase) in accrued income and other debtors	672	215	(404)
Increase/(decrease) in accrued expenses	340	(28)	17
Management fee charged to capital	(919)	(1,216)	(2,553)
Overseas withholding tax	(1,632)	(1,203)	(2,820)
Dividends received	(10,334)	(9,063)	(18,160)
Interest received	(91)	(139)	(470)
Realised (losses)/gains on foreign currency transactions	(29)	(306)	505
Realised (losses)/gains on liquidity fund	(91)	2	1,366
Net cash outflow from operations before dividends
and interest	(1,042)	(2,165)	(2,158)

7. Fair valuation of financial instruments

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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 30th June 2019		Six months ended 30th June 2018		Year ended
					31st December 2018
	Assets	Liabilities	Assets	Liabilities	Assets	Liabilities
	£'000	£'000	£'000	£'000	£'000	£'000
Level 1	1,015,304	—	1,027,531	—	910,438	—
Level 21	—	—	3	—	—	—
Total value of investments	1,015,304	—	1,027,534	—	910,438	—

1 Consisting of forward foreign currency contracts.

Interim Management Report

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

Principal Risks and Uncertainties

The principal risks and uncertainties faced by the Company remain unchanged and fall into the following broad categories: investment and strategy; market; accounting, legal and regulatory; corporate governance and shareholder relations; operational; financial; political and economic. Information on each of these areas is given in the Business Review within the Annual Report and Accounts for the year ended 31st December 2018.

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

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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, 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 operation existence for at least twelve months from the date of the approval of this half yearly financial report. For these reasons, they consider there is reasonable evidence to continue to adopt the going concern basis in preparing the accounts.

Directors' Responsibilities

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

• (i) the condensed set of financial statements contained within the half 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 2019 as required by the UK Listing Authority Disclosure and Transparency Rules 4.2.4R; and
• (ii) the interim management report includes a fair review of the information required by 4.2.7R and 4.2.8R of the UK Listing Authority Disclosure and Transparency Rules.

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

• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business;

and the Directors confirm that they have done so.

For and on behalf of the Board Dr Kevin Carter Chair 14th August 2019

Shareholder Information

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Return to Shareholders (APM)

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Total return to shareholders, 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.

Total return calculation	Six months ended
	Page	30th June 2019
Opening share price (p)	4	399.0	(a)
Closing share price (p)	4	457.5	(b)
Total dividend adjustment factor1		1.009091	(c)
Adjusted closing share price (d = b x c)		461.7	(d)
Total return to shareholders (e = d / a – 1)		15.7%	(e)

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 price quoted at the ex-dividend date.

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 were reinvested, into the shares of the Company at the NAV per share at the time the shares were quoted ex-dividend.

	Six months ended
Total return calculation	Page	30th June 2019
Opening cum-income NAV per share (p)	4	420.7	(a)
Closing cum-income NAV per share (p)	4	480.8	(b)
Total dividend adjustment factor2		1.008623	(c)
Adjusted closing share price (d = b x c)		484.9	(d)
Total return on net assets (e = d / a – 1)		15.3%	(e)

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 NAV at the ex-dividend date.

Benchmark Return

Total return on the benchmark, on a closing-market value to closing-market value basis, assuming that all dividends received were reinvested, without transaction costs, 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 'track' this index and consequently, there may be some divergence between the Company's performance and that of the benchmark.

Gearing/(Net Cash) (APM)

Gearing represents the excess amount above shareholder's funds of total investments, expressed as a percentage of the shareholders' funds. Previously gearing represented the excess amount above shareholders' funds of total assets expressed as a percentage of shareholders' funds. Total assets included total investments and net current assets/liabilities less cash and cash equivalents and excluding bank loans of less than one year. If the amount calculated is negative, this is shown as a 'net cash' position.

Gearing calculation	Page	£'000	30th June 2019 31st December 2018 £'000
Investments held at fair value through profit or loss	18	1,015,304	910,438	(a)
Net assets	18	1,031,142	919,176	(b)
Net cash (c = a / b – 1)	4	(1.5)%		(1.0)% (c)

Ongoing Charges (APM)

The ongoing charges represent the Company's management fee and all other operating expenses excluding finance costs payable, expressed as a percentage of the average of the daily cum-income net assets during the year and is calculated in accordance with guidance issued by the Association of Investment Companies.

The figure as at 30th June 2019 is an estimated annualised figure based on the numbers for the six months ended 30th June 2019.

Ongoing charges calculation	Page	30th June 2019 £'000	31st December 2018 £'000
Management Fee	16	1,1491	3,191
Other administrative expenses	16	656	637
Total management fee and other administrative expenses		1,805	3,828	(a)
Average daily cum-income net assets		993,404	995,024	(b)
Ongoing charges (c = a / b)	4	0.18%	0.38%	(c)

1 With effect from 1st June 2019, for a period of nine months, the management fee is waived. Therefore, the management fee figure used in the calculation reflects the five months paid to 31st May 2019.

Share Price Discount/Premium to Net Asset Value ('NAV') per Share (APM)

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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, meaning there are more sellers than buyers.

The discount is shown as a percentage of the NAV per share. The opposite of a discount is a premium. It is more common for an investment trusts' shares to trade at a discount than at a premium (see page 4).

J.P. Morgan investment trusts are eligible investments within a stocks & shares individual savings account (ISA) and Junior ISA.

For the 2019/20 tax year, from 6th April 2019 and ending 5th April 2020, the annual ISA allowance is £20,000 and Junior ISA allowance is £4,368.

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

1. Via a third party provider

Third party providers include:

AJ Bell Alliance Trust Savings Barclays Smart Investor Charles Stanley Direct FundsNetwork

American_pp25-28 13/08/2019 12:05 Page 28

Hargreaves Lansdown Interactive Investor Selftrade The Share Centre

Please note this list is not exhaustive and the availability of individual trusts may vary depending on the provider. These websites are third party sites and J.P. Morgan Asset Management does not endorse or recommend any. Please observe each site's privacy and cookie policies as well as their platform charges structure.

2. Through a professional adviser

Professional advisers are usually able to access the products of all the companies in the market and can help you find an investment that suits your individual circumstances. An adviser will let you know the fee for their service before you go ahead. You can find an adviser at unbiased.co.uk

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

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

Information for J.P. Morgan investment account and stocks & shares ISA account holders

On 8th April 2019, J.P. Morgan Asset Management informed holders of J.P. Morgan investment accounts and stocks & shares ISA savings products that it had decided to cease managing these accounts. Investors are able to remain invested in J.P. Morgan managed investment trusts by transferring to another service provider.

Information regarding the transfer arrangements has been provided, detailing the options to; transfer to an alternative third party provider, re-register the investment into certificated form or sell the investment. Where no alternative instruction is received the account will be transferred later in the year, in line with the correspondence sent by J.P. Morgan on 8th April 2019.

For full details of all the options available to investors, please refer to correspondence sent by J.P. Morgan on 8th April 2019, contact your financial adviser or contact J.P. Morgan's Client Administration Centre on 0800 20 40 20/+44 (0) 1268 44 44 70.

Be ScamSmart

Investment scams are designed to look like genuine investments

Spot 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

Avoid investment fraud 1 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.

contacted by fraudsters. Remember: if it sounds too good to be true, it probably is!

Report a Scam

If you suspect that you have been approached by fraudsters please tell the FCA using the reporting form at www.fca.org.uk/consumers/reportscam-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

FINANCIAL CALENDAR

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31st December
March
30th June
August
May/October
May

History

The Company has its origins in the Alabama, New Orleans, Texas and Pacific Junction Railways Company Limited which was formed in 1881 to acquire interests in, and to undertake the completion of, three American railroads – the Vicksburg and Meridian, the Vicksburg, Shreveport and Pacific and the New Orleans and North Eastern. In 1917 the Company was reorganised, a proportion of the railroad interests were sold, and the investment powers were widened enabling its assets to be invested in several countries including the United Kingdom. To reflect the new objectives the name was changed to The Sterling Trust. The Company's investment policy reverted to North American securities in 1982 when the name was changed to The Fleming American Investment Trust plc. The name was changed to JPMorgan Fleming American Investment Trust plc in April 2002 and to its present form in 2006. JPMorgan, and its predecessor company, has been the Company's manager and secretary since 1966.

Directors

Dr Kevin Carter (Chair) Simon Bragg (Audit Committee Chair) Sir Alan Collins (Risk Committee Chair and Senior Independent Director) Nadia Manzoor Robert Talbut

Company Numbers

Company registration number: 15543 Country of registration: England and Wales London Stock Exchange number: 08456505 ISIN: GB00BKZGVH64 SEDOL Code: BKZGVH6 Bloomberg code: JAM LN LEI: 549300QNAI4XRPEB4G65

Market Information

The Company's shares are listed on the London Stock Exchange. The market price is shown daily in the Financial Times, The Times, The Daily Telegraph, The Scotsman and on the J.P. Morgan internet site at www.jpmamerican.co.uk, where the share price is updated every fifteen minutes during trading hours.

Website

www.jpmamerican.co.uk

Share Transactions

The Company's shares may be dealt in directly through a stockbroker or professional adviser acting on an investor's behalf.

Manager and Company Secretary

JPMorgan Funds Limited

Company's Registered Office

60 Victoria Embankment London EC4Y 0JP Telephone number: 020 7742 4000 For company secretarial and administrative matters, please contact Alison Vincent.

Depositary

The Bank of New York Mellon (International) Limited 1 Canada Square London E14 5AL

Custodian

JPMorgan Chase Bank, N.A. 25 Bank Street Canary Wharf London E14 5JP

Registrars

Equiniti Limited Reference 1077 Aspect House Spencer Road West Sussex BN99 6DA Telephone number: 0371 384 2316

Lines open 8.30 a.m. to 5.30 p.m. Monday to Friday. Calls to the helpline will cost no more than a national rate call to a 01 or 02 number. Callers from overseas should dial +44 121 415 0225

Notifications of changes of address and enquiries regarding share certificates or dividend cheques should be made in writing to the Registrar quoting reference 1077.

Registered shareholders can obtain further details on their holdings on the internet by visiting www.shareview.co.uk

Independent Auditors

Deloitte LLP Statutory Auditor 2 New Street Square London EC4A 3ZB

Brokers

Winterflood Securities Limited The Atrium Building Cannon Bridge 25 Dowgate Hill London EC4R 2GA

Savings Product Administrators

For queries on the J.P. Morgan Investment Account and J.P. Morgan ISA, see contact details on the back cover of this report.

A member of the AIC

www.jpmamerican.co.uk

American 4pp cover.qxp 13/08/2019 12:02 Page BC2

CONTACT J.P. MORGAN

Freephone 0800 20 40 20 or +44 (0) 1268 444470. Telephone lines are open Monday to Friday, 9.00am to 5.30pm.

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