JPMorgan European Discovery Trust Regulatory News (JEDT)

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN EUROPEAN DISCOVERY TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED 31st MARCH 2026

Legal Entity Identifier: 54930049CEWDI46Y3U28

Information disclosed in accordance with the DTR 4.1.3

Highlights:

· Net Asset Value (NAV) total return of +23.2% compared with +17.5% for the MSCI Europe (ex UK) Small Cap Net Total Return Index in sterling terms (the "Benchmark"). Share price total return of +21.0%.

· For three years cumulative ended 31st March 2026, NAV total return of +35.3% compared with +26.1% for the Benchmark. Share price total return of +46.2%.

· For five years cumulative ended 31st March 2026, NAV total return of +30.5% compared with +26.7% for the Benchmark. Share price total return of +38.2%.

· For ten years cumulative ended 31st March 2026, NAV total return of +139.6% compared with +138.7% for the Benchmark. Share price total return of +149.9%.

· The Company generated a record revenue return for the year of 18.18p per share as at 31st March 2026 compared with 12.36p as at 31st March 2025 (+47.1%). Dividend per share 16.0p (2025: 13.0p).

· During the year, the Company repurchased 19,458,212 shares. A further 1,474,156 shares have been re-purchased since the period end.

The Chairman of JEDT, Marc van Gelder, commented:

"While the Board welcomes the strong performance over the past year, we continue to focus on long-term outcomes for shareholders. I am pleased to report that this year's outperformance enhanced the Company's already robust long-term performance track record. The Company has now made absolute gains and outperformed the benchmark over the three-, five-and ten-year periods ended 31st March 2026."

"The Board is confident that the portfolio is well-positioned to continue providing shareholders with attractive returns and outperformance as European smaller companies continue their long overdue rebound."

Portfolio Managers, Jon Ingram, Jack Featherby, Jules Bloch, commented:

"We remain highly optimistic about the prospects for European small caps. We believe the asset class is overdue a resurgence as Europe enters a new phase of investment and growth. Smaller cap companies are uniquely positioned to benefit from the major investment themes playing out in European markets, as a result of their strong domestic focus and agility in adapting to changing market conditions."

CHAIR'S STATEMENT

Dear Shareholder,

I am pleased to present the Annual Report for the year ended 31st March 2026 and to report that our Company:

• outperformed its benchmark over the year, delivering a total return on net assets of +23.2% compared with +17.5% from the MSCI Europe (ex UK) Small Cap Net Total Return Index in sterling terms;

• on an annualised net asset value (NAV) basis, has outperformed the benchmark over the three- and five-year periods ended 31st March 2026, and matched the benchmark over the ten-year period; and

• generated a record revenue return for the year of 18.18p per share compared with 12.36p per share in the prior year - an increase of 47.1%.

Investment Performance

The investment environment over the past year was positive for European equities, despite periods of significant volatility fuelled in large part by the US's erratic approach to tariffs and more recently, the US-Iran conflict in the Middle East. The main driver of European market gains was Germany's very significant fiscal stimulus package, which included plans to boost defence spending in response to concerns about the US's commitment to NATO. Other European allies followed the lead by committing to multi-year increases in military spending. European smaller cap stocks outperformed, as their domestic focus meant they benefited most from higher government spending and infrastructure investment.

Our Company outperformed its benchmark over the year, delivering a total return on net assets of +23.2% and total return on share price of +21.0%, compared with +17.5% from the MSCI Europe (ex UK) Small Cap Net Total Return Index in sterling terms. As well as performing competitively against its peers over the same period.

While the Board welcomes the strong performance over the past year, we continue to focus on long-term outcomes for shareholders. I am pleased to report that this year's outperformance enhanced the Company's already robust long-term performance track record. The Company has now made absolute gains and outperformed the benchmark over the three-, five-and ten-year periods ended 31st March 2026. While also delivering performance broadly in line with the benchmark over ten years on a NAV basis.

It is most pleasing to see that the enhancements made by the Manager, in conjunction with the Board, over the last 18-24 months has resulted in significantly improving performance over that period.

Gearing

Gearing can be a differentiator for an investment trust. The Board believes that it can enhance long-term shareholder returns when applied prudently and within appropriate risk parameters. The Board sets the overall strategic gearing policy and guidelines which it reviews regularly.

Until March 2026, the Company's gearing strategy was financed via a fixed two-year €125 million revolving credit facility with Scotiabank. Following the maturity of this facility, the Board decided not to renew it as it initiated the use of Contracts for Difference (CFDs) as an alternative source of gearing.

CFDs are financial derivatives which provide exposure to share price movements without requiring ownership of the underlying shares. This offers greater flexibility and cost efficiency than traditional loan facilities, as well as offers the Portfolio Managers operational advantages. The Board continues to closely monitor both the use of CFDs and management of the exposures.

During the year, gearing ranged between 1.1% and 8.0%. At the end of the financial year gearing stood at 4.0%.

Revenue and Dividends

The Company generated a record revenue return for the year of 18.18p per share compared with 12.36p per share in the prior year - an increase of 47.1%.

The Company's investment objective remains focused on maximising capital growth. This means that the Portfolio Managers are unconstrained to deliver income in any individual financial year. However, the Company's dividend policy is to distribute to its shareholders substantially all available revenue each year to fulfil the distribution requirement of section 1158 of the Corporation Tax Act 2010 to maintain its investment trust status.

An interim dividend of 3.0 pence per share was paid on 5th February 2026. In light of the revenue generated during the financial year and the Company's revenue reserves and subject to shareholder approval at the upcoming Annual General Meeting (AGM), the Directors have declared a final dividend of 13.0 pence per share. This will result in the total dividend for the year to 16.0 pence, compared to a total dividend of 13.0 pence for the previous year.

The final dividend will be paid on 3rd August 2026 to shareholders on the register at the close of business on 3rd July 2026. The ex-dividend date will be 2nd July 2026. Following this dividend payment, the Company's revenue reserves will total £14.9 million, compared to £12.3 million at 31st March 2025.

Discount Management and Share Repurchases

The Board monitors the level of the discount carefully. When appropriate, it uses the ability to repurchase shares to minimise the short-term volatility and the absolute level of the discount. During the financial year the Company repurchased 19,458,212 shares. A further 1,474,156 shares have been re-purchased since the period end. As at 17th June 2026, the discount was 8.3%.

The Company's share price discount relative to net asset value widened during the Company's financial year from 7.3% as at end March 2025 to 9.0% at end March 2026. The average discount over the period was 7.5%. This widening is broadly consistent with the wider trends across the investment trust sector which has been negatively impacted by the heightened geopolitical uncertainty.

As the Company's share buyback facility is an important tool in the management of discount volatility, my fellow Directors and I recommend that shareholders approve the renewal of the authority to repurchase up to 14.99% of the Company's shares at the Company's forthcoming AGM. The Board is also, once again, seeking shareholder approval to issue shares at a premium to NAV and to disapply pre-emption rights on any such issues. As with buying shares at a discount, issuing new shares at a premium to NAV enhances returns to existing shareholders and improves market liquidity.

The Manager

The Board, through its Management Engagement Committee, reviews JPMF's performance as the Company's Manager on an ongoing basis. In light of the Manager's investment performance track record and the depth and quality of resources it provides to the Company and its shareholders, the Board is satisfied that JPMF's continued appointment remains in shareholders' best interests.

The Board

Having served on the Board for just over nine years, including seven years as Chairman, as mentioned in my statement last year, I will retire at the conclusion of the AGM in July 2026.

I am pleased to confirm that James Will will succeed me as Chair of the Board, and as Chair of both the Nomination Committee and the Management and Engagement Committee. James has served as a Director of the Company since July 2024. He is a lawyer and a seasoned non-executive director in the investment trust sector. He has been a consistently thoughtful and a constructive contributor to the Board. I am confident he will provide sound leadership to the Company in the years ahead.

During the year, the Board also completed the search for a new Non-executive Director. I am delighted to report that the process concluded with the appointment of Michiel Jaski with effect from 9th February 2026. Mr. Jaski brings a wealth of experience from his career in executive and non-executive roles across leading European businesses. His professional experience is summarised on page 48 of the Annual Report.

Environmental, Social and Governance ('ESG')

The Board shares the Investment Manager's view of the significance of financially material environmental, social and governance ('ESG') factors when making long term investment decisions. The Portfolio Managers regularly discuss financially material ESG issues with the management teams of potential and current investee companies. Further information on the Investment Manager's ESG process and engagement is set out in the ESG Report on pages 33 to 35 in the Annual Report.

Shareholder Engagement

The Board values regular engagement with shareholders and appreciates the insights gained through these discussions. They are most helpful in assisting it with the management of the Company.

Over the course of the year, we engaged with a number of our largest shareholders to understand their thoughts and views and thank shareholders for their support. We remain committed to continued engagement over the coming year - in particular, Board members welcome meetings as and when opportunities arise for such dialogue.

It is the Board's view that widening the Company's shareholder base and increasing demand for its shares by other means serve the interests of existing shareholders, by increasing liquidity and supporting the share price. To this end, as previously reported, a sub-committee of the Board works closely with the Manager's sales and marketing teams to communicate the appeal of the European small and mid-cap sector to raise the Company's profile and to attract more retail investors.

Annual General Meeting

The Company's Annual General Meeting will be held on Tuesday, 21st July 2026 at 12.30 p.m. at 60 Victoria Embankment, London EC4Y 0JP.

The Portfolio Managers will make a presentation to shareholders, reviewing the past year and commenting on the outlook for the current year. The meeting will be followed by lunch to provide shareholders the opportunity to meet the Directors and the Manager's representatives. My fellow Directors and I look forward to seeing as many shareholders as possible at the AGM.

For shareholders wishing to follow the AGM proceedings but choosing not to attend in person, we will be able to welcome you through our conferencing software. Details on how to register, together with access details, will shortly be available on the Company's website: www.jpmorganeuropeandiscovery.co.uk, or by contacting the Company Secretary at jpmam.investment.trusts@jpmorgan.com.

As is normal practice, all voting on the resolutions will be conducted by a poll. Your Board encourages all shareholders to support the resolutions proposed. Please note that shareholders viewing the meeting via conferencing software will not be able to vote on the poll and we therefore encourage all shareholders, and particularly those who cannot attend in person, to exercise their votes in advance of the meeting by completing and submitting their proxy. Proxy votes can be lodged in advance of the AGM either by post or electronically; detailed instructions are included in the Notes to the Notice of AGM on pages 104 to 106 of the Annual Report.

If you have any detailed or technical questions, it would be helpful if you could raise them in advance with the Company Secretary at the above-mentioned email address.

If there are any changes to the arrangements for the AGM, the Company will update shareholders through the Company's website and, if appropriate, through an announcement on the London Stock Exchange.

Stay Informed

The Company delivers email updates with regular news and views, as well as the latest performance. If you have not already signed up to receive these communications and you wish to do so, you can opt in via tinyurl.com/JEDT-Sign-Up or by scanning the QR code on page 13 of the Annual Report.

Outlook

The Board remains optimistic about the continued positive outlook for European smaller cap companies, and as a result for the Company.

The sector is experiencing an overdue resurgence from increased fiscal investment across Europe, particularly in Germany, together with expectations of higher infrastructure and defence spending. We welcome the Portfolio Managers' ongoing efforts to maximise the Company's exposure to these themes, as well as to energy sector companies in the vanguard of the transition to electrification and renewable energy - a trend gaining momentum in response to recent events in the Middle East.

The combination of these developments has the potential to drive further significant re-rating of European smaller caps over 2026 and well beyond. Especially, as valuations in this part of the market remains very attractive in absolute terms and relative to European large caps, the US and other global markets. As I noted in the Half-Year report, international investors are showing increased interest in European equities, including via M&A activity, and this investment trend is set to continue with European smaller companies as the sweet spot.

Ongoing performance has also confirmed the merits of the recent process enhancements made by the Portfolio Managers, along with their focus on high-quality companies with strong market positions, resilient business models and attractive long-term growth prospects. This has reinforced the Board's confidence that the portfolio is very well-positioned to continue providing shareholders with attractive returns and outperformance as European smaller companies continue their long overdue rebound.

Finally, it has been a great pleasure to have been a Director of the company for almost ten years. I have enjoyed working with my Board colleagues past and present and J.P. Morgan, our Manager - I would like to thank them all for their support. As I move on, I feel assured that I leave the Company in a good place - following a period of consistently good performance and with a very positive outlook. Just as importantly, leaving the Company with a Portfolio Management team and a Board that is capable of steering the course in the best interests of our shareholders during whatever follows.

Marc van Gelder

Chair of the Board 18th June 2026

INVESTMENT MANAGER'S REPORT

Review

The financial year ended 31st March 2026 stood in stark contrast to the relative calm of the prior year. 2024-25 was characterised by steady declines in inflation, easing policy rates, and a comparatively calm backdrop for European equity markets. In contrast, the past twelve months have been shaped by pronounced volatility, driven by global trade policy shifts and geopolitical tensions. Nonetheless, European stocks still registered significant gains over the period.

The financial year began with President Trump's 'Liberation Day' tariff announcements, which marked a dramatic escalation in the United States punitive approach to trade policy and triggered a cycle of retaliatory measures from major trading partners. The unpredictability of the United States' approach - frequent tariff announcements, suspensions and renegotiations - created persistent uncertainty for global businesses and investors. This volatility was compounded by ongoing negotiations with China, the EU, and Japan, together with the prospect of additional tariffs in strategically important sectors such as semiconductors and commodities.

For the Company however, one of the most important developments during the year was the substantial fiscal stimulus package announced by Germany. The new government's commitment to increased public investment - particularly in infrastructure, defence, and industrial support - provided a powerful tailwind for European markets. This stimulus not only bolstered domestic economic activity, but also supported sectors such as construction, engineering and specialty chemicals. The measures also contributed to a broader recovery in European small caps, which are more domestically oriented and thus better positioned to benefit from such targeted government spending. Companies exposed to defence spending also prospered as the US administration's criticism of NATO, combined with Russia's territorial ambitions on Europe's eastern border, have prompted European governments to significantly increase military spending.

The growing influence of artificial intelligence ('AI') remained a central theme due in part to its significant capex requirements, which created sectoral dispersion between 'AI winners' and 'AI losers'. The software sector experienced notable volatility, with companies exposed to AI-driven efficiency gains and domestic stimulus performing strongly. While those vulnerable to disruption by AI came under pressure. The AI revolution is increasingly viewed as a once-in-a-generation phenomenon with the potential to boost productivity, competitiveness and economic growth in Europe.

Geopolitical risks intensified over the year, most notably in the Middle East, where the US-Iran conflict led to the closure of the Strait of Hormuz resulting in significant disruptions to global energy supply. These events contributed to inflationary pressures and heightened market risk from energy prices and input costs rising sharply.

Portfolio Performance

Despite uncertainty surrounding US trade policy and geopolitical developments in the Middle East, the investment environment remained supportive for the high-quality European smaller-cap companies that are the focus of our strategy.

Over the 12-month period ended 31st March 2026, the Company returned +23.2% on a total return NAV basis and +21.0% in share price terms, outperforming its benchmark, the MSCI Europe (ex UK) Small Cap Net Total Return Index in sterling terms, which rose by +17.5% over the same period.

The Company has also delivered positive absolute returns in both NAV and share price terms over the three-, five- and 10-year periods ended 31st March 2026, outperforming the benchmark over three and five years. Over the 10-year period, the Company generated annualised total returns of +9.1% on an NAV basis, in line with the benchmark. Annualised share price returns averaged +9.6% over the same period.

Performance attribution

Year ended 31st March 2026

Source: Morningstar/J.P. Morgan.

All figures are on a total return basis.

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

A Alternative Performance Measure ('APM').

A glossary of terms and APMs is provided on pages 107 and 108 of the Annual Report.

Sector contribution

Table 1: Sector performance - Top 3 and Bottom 3 sectors contributing to performance.

Note: All numbers are preliminary. Source: J.P. Morgan Asset Management.

Over the past year, the Company's overweight positioning in the Industrials, Financials, and Energy sectors were the key drivers of outperformance at the sector level, reflecting both macroeconomic tailwinds and stock-specific catalysts.

Industrials

The Industrials sector was the standout contributor, supported by several distinct themes. Increased fiscal stimulus and public infrastructure spending lifted demand for industrial services across Europe. Bilfinger, a German engineering and construction company, was one of several portfolio holdings profiting from these policy initiatives. In addition, Bilfinger's management-led efficiency gains resulted in solid margin expansion and cash flow conversion improvements, leading to a significant stock rerating. Elsewhere, rising European defence spending boosted names such as Kitron, a Norwegian company which specialises in electronic manufacturing services. Its order backlog reached record highs, due to a surge in large contracts.

Financials

Financials also performed well, underpinned by resilient economic activity, improving consumer confidence and supportive monetary policy. Portfolio holdings which benefitted in this environment included:

• Storebrand, a leading Nordic life insurer and asset manager, delivered strong results over the period, driven by robust growth in its non-life and health insurance businesses and solid performance in its asset management business. Notably, Storebrand is evolving towards a more capital-light business model, which is freeing up capital for shareholder distribution, thus enhancing investor returns;

• Vienna Insurance, one of the largest insurance groups in Central and Eastern Europe. The release of a strategic plan for 2028 led to significant upgrades to the company's earnings estimates. In addition, its acquisition of Nürnberger, a sizable German insurance company, expanded its footprint and diversified its revenue streams. While solid growth in its Austrian non-life and health businesses, as well as in the motor and property segments in the Czech Republic further bolstered results; and

• Banco Comercial Portugues, a leading European retail bank. Continued strong operational momentum is underpinning mid-term targets and net interest income stability. The bank's exposure to stable domestic markets and its ability to navigate tariff and trade uncertainty insulated it from broader macro volatility.

Energy

The Energy sector was another major contributor to returns, supported by both structural and geopolitical factors which fuelled ongoing investment growth in both traditional and emerging energy markets. Saipem, a leader in engineering services for the energy sector, was one notable winner from these developments. This Italian company saw improved order intake momentum, thanks in part to the anticipated resumption of the long-paused Mozambique LNG project. The company's strong execution and ability to secure new contracts in both the oil and gas and renewable energy markets supported earnings growth. While geopolitical tensions and supply disruptions in the Middle East further elevated demand for energy infrastructure and services.

Technology

Technology was the Company's largest detractor at the sector level over the review period. Primarily due to our holdings in software and IT services names such as Innoscripta and Reply, which faced headwinds from sector-wide volatility and underperformance among 'AI losers'. Scout24, a leading European digital property platform, also detracted due to concerns about the potential impact of AI on real estate platforms.

Stock contribution

Table 2: Stock performance - Top 3 and Bottom 3 stocks contributing to performance

Note: All numbers are preliminary. Source: J.P. Morgan Asset Management.

Contributors to performance

• Koninklijke Heijmans, a Dutch construction and project development company, was the largest contributor to performance at the stock level. In addition to benefiting from increased infrastructure spending and fiscal stimulus, Heijmans was further supported by robust demand for housing in its home market, where its strategic positioning enabled it to capture growth opportunities and outperform peers. As a result, the company delivered strong full-year results, with EBITDA margin meeting its 2027 target two years early. A robust, high-quality order book reinforced the positive outlook into FY2026.

• Tecnicas Reunidas, a Spanish engineering and construction company with a focus on oil, gas, and power generation, was another standout performer. It is positioning itself as a direct beneficiary of rising government spending and energy sector growth. An increase in services contracts supported earnings and led to upgraded guidance. Furthermore, the company's strategic plan update surprised on the upside, highlighting a large project pipeline and an expected acceleration in project delivery, especially in the area of power generation.

• Kitron, a Scandinavian electronics manufacturing services company, was also among the year's top contributors. Its exposure to strong demand from defence and data centre customers, combined with its ability to adapt to evolving technology trends, enabled it to deliver sustained growth and margin improvement throughout the year. The company released robust Q4 results, including an upgraded outlook for FY2026 and completed a sizable acquisition that further strengthened its market position.

Detractors from Performance

• Aixtron a leading provider of thin-film deposition equipment to the semiconductor industry based in Germany. Our underweight in the company detracted from returns. The company benefited from strong demand for advanced manufacturing solutions and early signs of recovery in automotive and industrial end-markets. However our underweight meant we missed capturing larger gains from Aixtron's positive momentum. This amplified the negative performance impact from our sectoral exposure to software and IT services mentioned above.

• Millicom a telecommunications and media company focused on emerging markets headquartered in Luxembourg. Our underweight position in Millicom also detracted. As the company delivered strong results over the period, supported by resilient demand for connectivity and digital services, as well as operational improvements and expansion in key markets.

• Innoscripta a German software company offering platforms to manage R&D expenditures and projects. Our overweight position detracted from performance, despite the company delivering good results over the period. Innoscripta was caught up in the broader de-rating of the software sector, as concerns about the disruptive impact of AI weighed on valuations across the industry. This sector-wide shift overshadowed the company's operational achievements.

Portfolio positioning

Chart 1: Portfolio sector positioning - can be found on page 18 of the Annual Report

Throughout the financial year, we maintained a disciplined and forward-looking approach to portfolio construction. Strategically allocating capital to sectors where we saw the strongest opportunities for growth and resilience.

Our sector positioning is designed to align the portfolio with structural growth drivers and macroeconomic tailwinds, while maintaining prudent risk controls. By being overweight in sectors such as Industrials and Energy, we aim to capture the benefits of government investment, technological innovation and evolving consumer trends. At the same time, our underweight positions in more defensive or challenged sectors, allows us to avoid areas where we see limited upside or heightened risks.

Consumer Discretionary

Our most significant overweight position is in the consumer discretionary sector. This positioning reflects our focus on businesses that are well-placed to gain from improving consumer confidence and spending trends. Within this sector, the portfolio features core investments in two Italian names, both of which exemplify our focus on quality, market leadership, and structural growth:

• Lottomatica, Italy's leading gaming company, has delivered robust performance as a result of its increasing online market penetration and ability to capture market share from less efficient regional competitors. We also like its strong brand, scalable digital platform and resilient demand profile; and

• De'Longhi, a global leader in small domestic appliances with a particular focus on coffee and cooking. We are impressed by its proven ability to innovate, its strong distribution network and its exposure to rising consumer demand for premium coffee machines.

Industrials

This is by far our largest outright sectoral allocation and our second largest active position. This reflects our confidence in companies poised to benefit from increased infrastructure investment, fiscal stimulus - particularly in Germany - and robust demand for engineering and manufacturing services. Within this sector, our portfolio includes investments in companies that exemplify our strategy of targeting market leaders with exposure to structural growth themes and resilient demand.

• Nordex, a leading German manufacturer of onshore wind turbines. We hold it for its strong order intake, record-level backlog, and its pivotal role in Europe's transition to renewable energy, supported by policy momentum and heightened demand for clean power solutions;

• Accelleron, a Swiss-based market leader in high-powered turbochargers. The company has impressed us with its ability to capitalise on stricter climate regulations and the growing need for efficient marine and industrial solutions. The company's refurbishment business stands to gain from new international standards and its exposure to data centres and backup power; and

• Danieli, one of the largest suppliers of equipment to the steel industry based in Italy. It is owned for its robust order momentum, diversified global client base and its capacity to deliver innovative solutions in a sector undergoing modernisation and expansion.

Energy

Our overweight position in this sector is to capture opportunities arising from geopolitical shifts, supply disruptions and ongoing investment in global energy infrastructure. The holdings reflect our conviction in the energy sector's evolving opportunities and our focus on companies with strong execution and a technological edge.

• Tecnicas Reunidas, mentioned as a recent top performer above. It is held for its robust project pipeline, upgraded guidance, and ability to capitalise on increased investment in the power sector;

• SBM Offshore, a global supplier of floating production platforms for the oil and gas industry. It is included for its strong contract momentum, resilient earnings profile and strategic positioning which should allow it to capture long-term trends in offshore energy production and the transition to lower-carbon solutions; and

• Technip Energies, a leader in engineering and technology for the energy sector. The company is owned for its exposure to high-growth segments such as LNG and decarbonisation. As well as its innovative approach to project delivery and its ability to capture opportunities arising from the global shift towards cleaner, sustainable energy.

Other sectors and positioning

During the financial year, the portfolio's Information Technology exposure remained broadly in line with the benchmark as we await some clarity on the AI winner/AI loser debate within the sector. We also selectively added to those names we believe will benefit from the huge levels of AI investment already announced, and we have started to identify those companies currently perceived as AI losers, who are trading at bargain levels but should benefit over the longer term.

We maintained underweight positions in Utilities, Real Estate, and Communication Services, reflecting our cautious outlook on these sectors and our preference for allocating capital to areas with stronger growth prospects and structural tailwinds.

We do not hold any Utility companies due to their defensive nature, limited upside in a rising rate environment and lack of exposure to the structural growth themes driving our strategy. In Real Estate, subdued market activity, concerns around valuations and rising interest rates contributed to our limited exposure.

We also remained underweight to Communication Services, as the sector faces persistent competitive pressures, slow revenue growth and structural challenges in adapting to new technologies and changing consumer behaviours. Additionally, the emergence of advanced AI solutions poses a significant threat to conventional platform businesses within telecoms, as AI-driven automation and new communication models have the potential to disrupt established revenue streams and erode market share.

Overall, our current positioning remains pro-cyclical, with meaningful overweight allocations to sectors poised to gain from fiscal stimulus, infrastructure investment and improving consumer confidence - Consumer Discretionary, Industrials and Energy. While maintaining underweight exposure to defensive and structurally challenged areas such as Real Estate, Utilities, and Telecoms.

Outlook

Looking ahead, we remain highly optimistic about the prospects for European small caps. We believe the asset class is overdue a resurgence as Europe enters a new phase of investment and growth. Smaller cap companies are uniquely positioned to benefit from the major investment themes playing out in European markets, as a result of their strong domestic focus and agility in adapting to changing market conditions. Historically, these traits have ensured small caps have outperformed during periods of economic recovery and structural transformation. We believe the current environment - characterised by rising government investment, technological innovation and the ongoing transition to renewable energy - provides fertile ground for sustainable growth.

Importantly, valuations for European small caps remain highly attractive relative to their larger peers, offering compelling entry points for investors seeking both growth and value. Many small cap companies are trading at significant discounts despite robust balance sheets, healthy cash flows, and strong fundamentals. This valuation gap, combined with increasing interest from private equity and strategic investors, is likely to increase deal activity and result in additional market upside.

At the same time, geopolitical tensions and energy supply disruptions are likely to persist with the associated risks for energy prices and input costs. Consequently, central banks will face the challenge of balancing inflation concerns against the need to support growth. Against this backdrop, we are confident that our portfolio's focus on high-quality, innovative small cap companies means it is well positioned to capture the exciting developments underway in Europe. This should ensure that it continues to deliver compelling returns and outperformance for our shareholders in the years ahead.

Jules Bloch

Jack Featherby

Jon Ingram

Portfolio Managers 18th June 2026

PRINCIPAL AND EMERGING RISKS

The Directors confirm that they conduct a robust assessment of the principal and emerging risks facing the Company. It is with a focus on those risks that could materially adversely impact the Company's performance, share price, reputation or the viability of its business. The reviews are based on a risk matrix developed by the Audit & Risk Committee with the assistance of the Manager.

During the year, the Board discussed the risks and identified those that merit particular attention. At the current time these are - investment performance, discount control and the impact of geopolitical events. The Board also recognises risks arising from the evolving cybercrime threat environment and heightened attention around Artificial Intelligence ('AI').

The AIC Corporate Governance Code requires the Audit & Risk Committee to put in place procedures to identify emerging risks facing the Company. The Committee has conducted horizon scanning and other than the exacerbation of geopolitical events in the Middle East, it does not believe that there are any new emerging risks.

The risks together with how these are mitigated and managed, as far as practicable, are set out in the table below.

TRANSACTIONS WITH THE MANAGER

Details of the management contract are set out in the Directors' Report on page 50 of the Annual Report. The management fee payable to the Manager for the year was £4,033,000 (2025: £5,034,000), of which £nil (2025: £nil) was outstanding at the year end.

Included in administration expenses in note 6 on page 82 of the Annual Report are safe custody fees payable to JPMorgan Chase Bank N.A. amounting to £73,000 (2025: £91,000) excluding VAT of which £12,000 (2025: £12,000) was outstanding at the year end.

The Manager may carry out some of its dealing transactions through group subsidiaries. These transactions are carried out at arm's length. The commission payable to J.P. Morgan Securities plc for the year was £3,000 (2025: £3,000) of which £nil (2025: £nil) was outstanding at the year end.

Securities lending income amounting to £156,000 (2025: £461,000) were receivable by the Company during the year. JPMorgan Chase Bank N.A commissions in respect of such transactions amounted to £17,000 (2025: £51,000).

Handling charges (other capital charges) on dealing transactions amounting to £93,000 (2025: £39,000) were payable to JPMorgan Chase Bank N.A. during the year of which £14,000 (2025: £8,000) was outstanding at the year end.

At the year end, the Company held cash of £779,000 (2025: cash held of £662,000) with JPMorgan Chase Bank N.A. A net amount of interest of £7,000 (2025: £5,000) was receivable by the Company during the year from JPMorgan Chase Bank N.A of which £nil (2025: £nil) was outstanding at the year end.

The Company also invests in JPMorgan EUR Liquidity Fund, which is managed by JPMorgan Asset Management (Europe) S.à r.l. At the year end, this was valued at £8.3 million (2025: £23.0 million). Interest amounting to £628,000 was receivable (2025: £1,154,000) during the year of which £nil (2025: £nil) was outstanding at the year end.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and Accounts in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that, taken as a whole, the Annual Report and Accounts are fair, balanced and understandable, provide the information necessary for shareholders to assess the Company's position and performance, business model and strategy and that they give a true and fair view of the state of affairs of the Company and of the total return or loss of the Company for that period. 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 a 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.

The Directors are responsible for keeping proper accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The financial statements are published on the www.jpmeuropeandiscovery.co.uk website, which is maintained by the Company's Manager. The maintenance and integrity of the website maintained by the Manager is, so far as it relates to the Company, the responsibility of the Manager. The work carried out by the Auditors does not involve consideration of the maintenance and integrity of this website and, accordingly, the Auditors accept no responsibility for any changes that have occurred to the financial statements since they were initially presented on the website. The financial statements are prepared in accordance with UK legislation, which may differ from legislation in other jurisdictions.

Under applicable law and regulations the Directors are also responsible for preparing a Directors' Report, Strategic Report, Statement of Corporate Governance and Directors' Remuneration Report that comply with that law and those regulations.

Each Director, whose names and functions are listed on pages 48 and 49 in the Annual Report confirm that, to the best of their knowledge:

• the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and return or loss of the Company; and

• the Strategic Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

The Board confirms that it is satisfied that the Annual Report and Financial Statements taken as a whole are fair, balanced and understandable and provide the information necessary for shareholders to assess the strategy and business model of the Company.

For and on behalf of the Board

Marc van Gelder

Chair of the Board

18th June 2026

STATEMENT OF COMPREHENSIVE INCOME

A final dividend of 13.0p per share (2025: 10.0p per share) is proposed in respect of the year ended 31st March 2026, costing £12,014,000 (2025: £9,552,000). More details can be found in note 10(a) on page 84 of the Annual Report.

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

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 year and also Total Comprehensive Income.

STATEMENT OF CHANGES IN EQUITY

1 These reserves form the distributable reserves of the Company and may be used to fund distribution to shareholders via dividend payments or share buybacks.

2 During the year ended 31st March 2025, the Company undertook a Tender Offer providing shareholders with the opportunity to tender up to 15% of the issued share capital in the Company (excluding Shares held in Treasury). As a result, 21,160,028 shares were validly tendered pursuant to the Tender Offer.

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CASH FLOWS

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31st March 2026

1. Accounting policies

(a) Basis of accounting

The financial statements are 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 July 2022. In preparing these financial statements the Directors have considered the impact of climate change risk as a principal risk as set out on page 42 of the Annual Report, and have concluded that it does not have a material impact on the Company's investments. In line with FRS 102 investments are valued at fair value, which for the Company are quoted bid prices for investments in active markets at the 31st March 2026 and therefore reflect market participants view of climate change risk. All of the Company's operations are of a continuing nature.

During the year ended 31st March 2026, the Company entered into Contracts for Difference ('CFDs'). The new accounting policies have been included below.

Except for the addition of accounting policies in respect of CFDs as disclosed in notes 1(d) and 1(g), all other policies applied in these Financial Statements are consistent with those applied in the preceding year.

Going Concern

The financial statements have been prepared on a going concern basis. The Board has, in particular, considered the impact of market volatility arising from geopolitical risks, including the crisis in Ukraine, Russia and the Middle East, and does not believe the Company's going concern status is affected. They have considered the potential impact and the mitigation measures which key service providers including Managers, have in place to maintain operational resilience and believe the adverse impact of further pandemics has declined. The Directors have reviewed income and expense projections to 30th June 2027 and the liquidity of the investment portfolio in making their assessment. In addition, the Company conducted stress testing, the results of which can be found in the Long Term Viability statement on page 39 of the Annual Report. Further details of Directors' considerations regarding this are given in the Chair's Statement, Investment Managers' report, Going Concern Statement, Viability Statement and Principal Risks section of this Annual Report.

2. Dividends

(a) Dividends paid and declared

1 Based on prevailing number of ordinary shares as on the report date.

All dividends paid and declared in the period have been funded from the revenue reserve.

The final dividend proposed in respect of the year ended 31st March 2025 amounted to £9,552,000. However, the amount paid amounted to £9,541,000 due to ordinary shares repurchased after the balance sheet date but prior to the record date.

The final dividend has been proposed in respect of the year ended 31st March 2026 and is subject to approval at the forthcoming Annual General Meeting. In accordance with the accounting policy of the Company, this dividend will be reflected in the financial statements for the year ending 31st March 2027.

(b) Dividends for the purposes of Section 1158 of the Corporation Tax Act 2010 ('Section 1158')

The requirements of Section 1158 are considered on the basis of dividends declared in respect of the financial year, shown below.

The revenue available for distribution by way of dividend for the year is £17,446,000 (2025: £15,892,000). The revenue reserve after payment of the final dividend will amount to £14,887,000 (2025: £12,254,000).

3. Return per ordinary share

4. Net asset value per ordinary share

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

JPMORGAN FUNDS LIMITED

19th June 2026

For further information, please contact:

Sachu SajiFor and on behalf of

JPMorgan Funds Limited

Telephone: 0800 20 40 20 or or +44 1268 44 44 70

E-mail: jpmam.investment.trusts@jpmorgan.com

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