LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMorgan US Smaller Companies Investment Trust plc

Half Year Report & FINANCIAL STATEMENTS

for the six months ended 30th June 2023

Legal Entity Identifier: 549300MDD7SOXDMBN667

Information disclosed in accordance with the DTR 4.2.2

The Directors of JPMorgan US Smaller Companies Investment Trust plc announce the Company's results for the six months ended 30 June 2023.

CHAIR'S STATEMENT

Performance

The Company's performance at the beginning of the reporting period for the six months to 30th June 2023 was hampered by headwinds from 2022, including high interest rates and high inflation. However, January 2023 saw a deceleration in inflation and the re-opening of China which aided growth sentiment. The Federal Reserve raised rates by 25bps twice during the reporting period. However, with the continuation of the regional bank crisis and the rising interest rate environment, the US Equity market remained volatile.

The Company's return on net assets for the reporting period was +0.4%, underperforming the Company's benchmark, the Russell 2000 index, which rose by +2.1%. The share price fell by -3.2%, resulting in a widening of the Company's discount.

A fuller explanation of the performance is set out below in the Investment Manager's Report.

Discount to Net Asset Value

During the six month period to 30th June 2023, the Company's shares traded at a discount, averaging a discount of 9.1% over the six months. The relationship between our share price and the net asset value (NAV) is monitored on a daily basis by the Board and our professional advisers. To help with the management of the discount we have in place the authority to repurchase up to 14.99% of the Company's issued share capital. With the widening of the discount, the Company repurchased 187,090 shares into Treasury at an average discount of 10.3% during the review period. The Company has purchased an additional 50,000 shares into Treasury since the period end and at the time of writing, the Company's issued share capital consists of 65,506,265, including 997,733 shares in Treasury.

Board Succession Planning

All of the Directors were re-appointed at the Annual General Meeting (AGM) in April this year. The Board consists of five non-executive directors with a range of tenures from one year to eight years.

The Board has set in place a well-structured succession plan. In 2024 I shall have been on the Board for nine years and will therefore be retiring at the next AGM. The Board has agreed unanimously that Dominic Neary will take over from me as Chairman following the AGM in 2024. In addition, it has been agreed by the Directors that the Board will be reduced to four Directors following my retirement; we believe that this is an appropriate number given the size of the Company, and that the Board will continue to offer the correct balance of skills and diversity of membership.

Gearing

The Investment Manager has been given the flexibility by the Board to manage gearing tactically and remain invested within a maximum gearing limit set by the Board of 15% (±2.5% if as a result of market movement). The Company closed the six month period with a gearing level of 6.1% having averaged approximately 6.5% throughout the reporting period.

Having renewed the Company's $30 million gearing facility (with an accordion facility of $10 million) in October 2021 for two years, the Company continued to utilise its revolving credit facility to maintain a meaningful but modest level of gearing. $30 million is currently drawn down on the facility. As this facility expires in October 2023, the Board is currently considering its renewal.

Task Force on Climate-related Financial Disclosures (TCFD)

The Investment Manager published its first UK TCFD Report for the Company in respect of the year ended 31st December 2022 on 30th June 2023. The report discloses the portfolio's climate-related risks and opportunities according to the FCA Environmental, Social and Governance Sourcebook and the TCFD Recommendations. The report is available on the Company's website: https://am.jpmorgan.com/content/dam/jpm-am-aem/emea/regional/en/regulatory/esg-information/jpmorgan-us-smaller-companies-investment-trust-plc-tcfd-report.pdf

This is the first report under the new guidelines and disclosure requirements and the Board will continue to monitor as these reports evolve.

Outlook

The Company's quality portfolio continues to offer an attractive valuation with good earnings growth. However, the Company's NAV and share price performance during the period was negatively impacted by small cap stocks underperforming large cap stocks, and with higher interest rates and continued recession fears, it is possible that this trend will continue in the near term. Despite this, the Board and Portfolio Managers remain optimistic for the longer term outlook of the Company.

David Ross

Chair                                                                                                                                 22nd August 2023

INVESTMENT MANAGER'S REPORT

Market Review

The US equity markets have had a solid year so far despite economic headwinds. In the first six months of 2023, the S&P 500 was up by 17.0% (in US dollar terms), supported by resilient earnings and hopes for a soft landing as inflation cooled and the Fed slowed interest rate hikes.

The year 2023 began with an exaggerated January effect, followed by a slight pullback in February, then reacceleration in March despite the banking troubles. Small caps saw more muted gains as fears of tightening lending standards impacted smaller names relative to mega cap stocks. The market rocketed higher in the second quarter, driven by excitement around artificial intelligence, which benefited mega-cap technology stocks, in particular. The much-discussed narrowness in the market also occurred within small caps.

Large cap stocks as represented by the S&P 500 Index, returned +17.0% (in US dollar terms), outperforming the small cap Russell 2000 Index, which returned +8.0%. Overall, value underperformed growth as the Russell 3000 Value Index returned +5.0%, while the Russell 3000 Growth Index returned +28.0%.

Performance

The Company's net asset value total return was +0.4% in the first half of 2023. While positive, this failed to keep pace with the +2.1% total return of its benchmark, the Russell 2000 Index in sterling terms. Stock selection was the primary driver of underperformance, with the consumer discretionary and health care sectors being the largest detractors.

Our sector allocation in industrials and energy contributed to performance.

Within industrials, our overweight position in Simpson Manufacturing and our position in Diversey for a part of the period were the top contributors. Simpson Manufacturing is a market leader in the wood connectors building product space. Shares rallied after the company reported strong quarterly results despite softer volumes. The company benefitted from resilient margins driven by strong cost management and lower raw material costs. We continue to like the stock given its attractive valuation, solid free cash flow generation and a tenured management team. Diversey, a provider of hygiene, infection prevention and cleaning solutions, performed well following the announcement that the company would be acquired by Solenis, a water treatment company owned by private equity firm Platinum Equity for an enterprise value of USD 4.6 billion.

At the security level, our exposure to Bright Horizons Family Solutions, within consumer discretionary proved beneficial. Bright Horizons Family Solutions is a provider of childcare and education services. Shares rose due to stronger-than-expected first quarter earnings driven by improved utilisation and enrolment levels, which was partially driven by improved labour availability. We continue to like the fundamentals of the business and believe its valuation remains reasonable, leaving us comfortable with our position.

On the other hand, our stock selection was the primary driver of underperformance, with the health care and consumer discretionary sectors being the largest detractors. Within health care, our overweight position in ModivCare was the largest detractor from performance. ModivCare is a provider of non-emergency medical transportation and non-medical home care services, primarily serving Medicaid enrollees. Shares declined due to concerns over Medicaid eligibility redeterminations and the potential for margin caps in the personal care segment. Additionally, the timing of receivables collections pressured cash flows. While disappointing, we believe the risks are well-understood by the market and are reflected in the current valuation, and we remain comfortable with our position in the stock.

At the security level, our position in Western Alliance for a part of the period, and being overweight in ServisFirst Bancshares within the financials sector were among the top detractors. Western Alliance is a regional bank serving the Southwestern US. Shares slumped in the wake of the Silicon Valley Bank and Signature Bank collapses, as investors aggressively sold growthier banks over fears around deposit retention. While Western Alliance had a strong liquidity position, we eliminated our position in the company given deposit uncertainty in the midst of what appeared to be a run on the bank as the crisis was unfolding. ServisFirst is an Alabama based regional bank that predominantly focuses on commercial and industrial lending in the southeast US. Shares fell after the company reported mixed quarterly results. The bank witnessed higher than expected levels of deposits shifting to interest bearing accounts in 1Q, thereby resulting in net interest margin compression. We remain comfortable with our position, given the company's strong fundamentals and solid deposits.

Portfolio Positioning

With regard to our portfolio positioning, we continue to focus on finding companies with durable franchises, good management teams and stable earnings that trade at a discount to intrinsic value. We continue to believe that smaller companies are worth investing in for long term investors as they include innovative companies that serve market niches and thereby can be a way to get in early on innovation.

Our trading activity in the period reflects caution given uncertainty surrounding the regional bank crisis, as well as opportunistic additions to high quality, competitively advantaged businesses that were undervalued. We trimmed outperformers within the industrials and consumer discretionary sectors, and lower conviction names across all sectors to raise cash and redeploy proceeds to better ideas. We also had mergers and acquisitions induced reductions. Within financials, we trimmed outperforming non-bank names and modestly added to banks as valuations reflect the sector headwinds, though we remain under-weight banks. Our largest absolute and relative weight remains in industrials, followed by utilities.

On the other hand, our largest underweights remain in the energy and health care sectors. While we have struggled to find high quality assets within most segments of the energy sector, we have found some interesting opportunities within the alternative energy and midstream areas.

Market Outlook

We remain constructive on the case for small caps in the intermediate and long term. While multiple signs such as persistent inflation, stretched labour markets, a stubbornly hawkish Fed and tightening bank lending standards point to reasons for caution, none of these concerns are new. Valuation versus large caps continues to look favourable, especially with such a thin slice of the mega cap technology names driving the overall market. We are cognisant that the earnings picture for small caps is not poised for an immediate rebound and recent earnings revisions have been negative. However, the stocks will react positively before earnings hit bottom and our natural leaning towards high quality companies should provide downside protection in the interim. We expect that macro factors will continue to dominate investor focus in the short term but we believe our process can outperform over the cycle.

While the economy teeters on the edge of recession, we remain balanced and continue to monitor incremental risks that could represent headwinds for U.S. equities. Through the volatility, we continue to focus on high conviction stocks and take advantage of market dislocations for compelling stock selection opportunities.

For and on behalf of the

Investment Manager

Don San Jose

Jon Brachle

Dan Percella

Portfolio Managers                                                                                                                     22nd August 2023

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: underperformance; market and economic; discount control; shareholder demand; lost of investment team or portfolio manager; outsourcing; cyber crime; statutory and regulatory compliance; and climate change. In addition, the following were identified as emerging risks: political and economic; global pandemics; market risk; and ongoing shareholder demand. 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 2022.

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, the inflationary environment 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 2023 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

David Ross

Chair                                                                                                                                           22nd August 2023

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30th June 2023

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.

The net return/(loss) on ordinary activities after taxation represents the profit/(loss) for the period/year and also the total

comprehensive income.

CONDENSED STATEMENT OF CHANGES IN EQUITY

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

CONDENSED STATEMENT OF FINANCIAL POSITION

At 30th June 2023

CONDENSED STATEMENT OF CASH FLOWS

For the six months ended 30th June 2023

¹ The presentation of the Cash Flow Statement, as permitted under FRS 102, has been changed so as to present the reconciliation of 'net return/(loss) before finance costs and taxation' to 'net cash inflow from operating activities' on the face of the Cash Flow Statement. Previously, this was shown by way of note. Other than consequential changes in presentation of the certain cash flow items, there is no change to the cash flows as presented in previous periods.

Reconciliation of net debt

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the six months ended 30th June 2023

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 2022 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

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 July 2022.

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 2023.

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 2022.

3.  Return/(loss) per share

4.  Dividends paid

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 2023 (2022: nil).

5. Net asset value per share

6.     Fair valuation of instruments

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

JPMORGAN FUNDS LIMITED

22nd August 2023

For further information, please contact:

Lucy Dina

For and on behalf of

JPMorgan Funds Limited

020 7742 4000

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

ENDS

A copy of the 2023 Half Year Report will shortly be submitted to the FCA's National Storage Mechanism and will be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The 2023 Half Year Report will 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.