JMF.L Regulatory News (JMF)

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN MID CAP INVESTMENT TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED 30TH JUNE 2020

Legal Entity Identifier: 549300QED7IGEP4UFN49

Information disclosed in accordance with the DTR 4.1.3

CHAIRMAN'S STATEMENT

Investment Performance

Traditionally my year end statement would open with a review of the full 12 months to the end of the Company's financial year. However, it somehow feels futile to reminisce for too long about the first half of the year; which witnessed the Company's benchmark return +15.6% and the Company's net assets return +17.6% for the six months ended 31st December 2019 following a return to political stability in the UK and the expected and long overdue conclusion to the Brexit negotiations. Instead the Company's reporting period has been dominated by the events relating to the emergence of a global pandemic. As well as serious implications for people's health and healthcare services, coronavirus ('COVID-19') has had, and is continuing to have, a significant impact on businesses and economies throughout the globe. The result has been precipitous falls in stock markets around the world with the UK market suffering more than most. Despite the subsequent recovery of the UK's stock market, it will be some time before we know the full extent of the damage to the UK economy, which is now officially in recession.

The market volatility for the FTSE 250 Index that COVID-19 generated was remarkable, far exceeding the levels seen in the worst of the Global Financial Crisis and more than four times the levels prevailing in the year prior to the March 2020 sell-off. This proved a challenging backdrop for all equity investors and it was no different for your Company's Investment Managers. For the year to 30th June 2020, the Company's net asset ('NAV') total return was -14.0% and the share price total return was -15.0%. For the same period the return from the Company's benchmark, the FTSE 250 (excluding investment trusts) Index, was -13.3%. The Company's marginal underperformance against its benchmark does little to detract from the Company's long term performance record which remains strong over 5, 10 and 15 years. This longer term performance, which includes the effects of the recent sell-off, demonstrates that the construction of resilient portfolios of quality companies will provide attractive absolute and relative returns over the longer periods notwithstanding the sometimes high levels of volatility associated with equity investments.

The Board remains confident in the Investment Managers' ability to continue to provide outperformance over the longer term, notwithstanding the current challenging investment environment, with volatility likely to persist for some time until the resolution of the global pandemic is clearer.

I am pleased to report that since the year end the Company's NAV has increased by 6.7% as at 31st August 2020, compared to the benchmark index increase of 4.5% over the same period. The share price has risen by 4.7%, leading to a widening of the discount as sentiment remains negative towards the UK mid cap sector.

The Investment Managers' Report set out below reviews the market and provides more detail on performance.

The Case for Investing in UK Mid Cap Companies and JPMorgan Mid Cap

I would like to emphasise again the case to shareholders for investing in the UK mid cap investment universe. The table below details the returns generated by the FTSE 250 indices compared with the FTSE 100 Index and other major global equity indices over 5, 10, 15 and 20 years to 30th June 2020.

Source: Bloomberg. Returns are in sterling.

Given the strong correlation to the UK consumer, the FTSE 250 constituents have lagged their larger counterparts in the shorter term because of the impact of Brexit and the pandemic on consumer behaviour and these short term headwinds will have an effect on the returns over all the periods included in the table. However, this data demonstrates a strong investment case for allocating a proportion of personal portfolios to funds investing in the FTSE 250, given their outperformance relative to the FTSE 100 over longer periods of time. Indeed, looking beyond the five year numbers, the FTSE 250 Index has outperformed the FTSE 100 Index over 10, 15 and 20 years.

Putting this in a global context, it may come as a surprise to some to see that the 20 year returns from UK mid cap companies have kept pace, in sterling terms, with the returns generated by a number of global equity indices usually associated with regions or economies that have demonstrated faster economic growth than has been seen from the UK.

The reasons for this outperformance remain relevant today and include the growth characteristics of mid cap companies, the diversity of companies within the benchmark, merger and acquisition opportunities, and limited analyst coverage which offer your Investment Managers the opportunity to benefit from identifying investment opportunities through their own detailed analysis and diligent and expert research of which other market participants may not be aware.

JPMorgan Mid Cap Investment Trust continues to be one of the few closed ended companies which invests in the UK mid cap universe, and benefits from its size, its flexibility, and its relatively inexpensive debt structure. Around 50% of UK investment trusts have market capitalisations of less than £200 million and those under £100 million are coming under increasing pressure to merge or wind-up. It is the Board's firm belief that JPMorgan Mid Cap, with assets under management of over £250 million and a competitive ongoing charges ratio, offers a well established investment vehicle into an attractive area of the market for investors. The Company's size permits the Investment Managers to be far more nimble when adapting the portfolio than their counterparts who run far larger mandates. Furthermore, the Company's flexible debt structure allows the managers to increase and decrease gearing at short notice. It is also worth highlighting that at 11.5% at the year end and 14.8% at the time of writing, the Company's current discount offers an attractive entry point for investors.

COVID-19 and the Company's Key Service Providers

The Board is pleased to report that, since the on-set of the pandemic, the Manager and the Company's other service providers have been able to adjust their business models to accommodate the working from home requirements with limited disruption. The Board has received assurances that the Company's operations, to include the management of the portfolio and the maintenance of a strong controls environment, have continued as normal with no issues being identified.

Revenue and Dividends

Dividend payments by UK companies have been severely affected by COVID-19 with a large number of companies reducing, cancelling or suspending payments. This has affected the Company's revenue for the year which, after expenses and tax, has fallen by 43.8% to 19.7 pence per share. The Company has in the past built up substantial reserves which can be used to supplement or smooth dividends in excess of current revenue in challenging years. It is safe to say that 2020 is a challenging year and the Board therefore proposes to use some of the reserves this year to maintain the level of dividend payment.

We have previously expressed a desire to increase dividends in inflation adjusted terms over the medium term. In the light of a modest 0.6% UK inflation rate for the year ended June 2020 and the uncertainty regarding the trend of dividend payments from our investee companies, we felt it was prudent for this year to keep total dividends paid unchanged. The Board is therefore proposing a final dividend of 21.5 pence which, when added to the interim dividend paid in April of 8.0 pence, amounts to a total dividend payable of 29.5 pence (2019: 29.5 pence) for the full year, equivalent to a dividend yield of 3.3% based on the share price at the financial year end. The final dividend will be paid on 13th November 2020 to shareholders on the register at the close of business on 9th October 2020.

After the payment of the final dividend and the use of some reserves, the Company will have reserves of approximately 30.4 pence per share. The Board will keep the Company's income generation under close review. Although the near-term outlook for earnings is uncertain, analysts are expecting a recovery in dividend payments in 2021, with FTSE 250 companies expected to fare better than their FTSE 100 counterparts. The Company's reserves will be prudently utilised to support dividends, if necessary, as the recovery ensues. Shareholders are reminded that the Company's objective is to achieve capital growth, and accordingly the Investment Managers will not be adjusting their investment process to seek out income generation at the expense of capital growth.

Discount Management

As the COVID-19 pandemic took hold, the average discount in the UK investment trust universe increased from circa 2.0% at the end of January 2020 to circa. 8.6% by the end of June 2020. Although the Company's share price discount to NAV has marginally widened over 12 months, it fluctuated widely over the year ranging from a discount of 13.6% at its widest to a premium of 3.5%, averaging 7.4%. At the Company's half year point, the positive sentiment for the UK arising from an emphatic victory for the Conservative party helped narrow the Company's discount to just 1.7%. The 2020 sell-off saw this tightening reversed as demand for equity invested investment trusts abated and levels of secondary market liquidity fell.

The Board monitors the Company's premium/discount level and will seek, where deemed prudent, to address imbalances in the supply and demand of the Company's shares through share buybacks. The Company has repurchased 6,321 shares over the financial year for this purpose and has repurchased a further • shares since the end of the financial year. Any shares repurchased are held in Treasury for possible re-issue. Treasury shares and any new Ordinary shares will only be sold or issued respectively at a premium to net asset value.

Gearing and Borrowing Facilities

The Board sets the overall gearing guidelines and reviews these at each meeting; changes in these guidelines between meetings may be undertaken by the Investment Managers after consultation with the Board. The Board has determined that, while in normal circumstances the Company will remain geared, the absolute range was recently amended from 5% net cash to 25% geared to 10% net cash to 20% geared, since the Investment Managers felt that the absolute maximum gearing they would put in place would be 20%. At the end of the Company's financial year the Company was 5.6% geared.

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 £45 million, expiring in December 2020 and March 2024, with the option of further increasing the March 2024 facility by £20 million. It is the Board's intention to enter into negotiations to refinance the facility that expires in December 2020 in the near future.

Liquidity considerations

The Company's investment portfolio is constructed from a diverse group of 62 listed UK equities, with a broadly equal allocation between companies deriving their revenue and profits from domestic and international sources. Liquidity risk is not considered to be significant, as the Company's investments comprise mainly readily realisable securities. In the event it was required, the Manager's expectation is that the current portfolio could be liquidated to the extent of 56.8% within three trading days and over 90% within nine trading days, based on a conservative set of assumptions regarding the participation in average daily market turnover. This measure is reviewed regularly by the Manager.

Review of the Auditors

The Company's current audit firm, PricewaterhouseCoopers LLP ('PwC'), has audited the Company's financial statements since its year ended 30th June 2011. Mindful of the EU regulations in relation to the statutory audits of listed companies which require the Company to conduct a tender of the position of the Auditors by 2021, this process was undertaken by the Audit & Risk Committee in February 2020. The Committee reviewed tender submissions from three audit firms, to include the Company's incumbent auditors, and following detailed consideration, recommended to the Board that PwC be reappointed as auditors on the basis of the breadth of experience demonstrated of the investment funds sector, and the resources and strength of their audit team.

Board of Directors

I became a Director of the company in 2008 and Chairman in October 2016 and, as I indicated last year, I will retire at the conclusion of the forthcoming Annual General Meeting. I have thoroughly enjoyed serving on the Board of JPMorgan Mid Cap and it has been a privilege to be Chairman for the past four years. I would like to thank shareholders, my fellow Directors and the team at JPMorgan for their many years of support.

As I reported in my Half Year statement released in February, John Evans, who was appointed to the Board in June 2016, will succeed me as Chairman. Refreshing the Board has continued with the appointment of Hannah Philp as a Director on 1st March this year. Hannah has direct and relevant experience within the sector, particularly in the fields of marketing and communication, having been director of marketing at Witan Investment Trust, a FTSE 250 investment company, where she was responsible for the oversight of Witan's marketing and communications strategy, PR, website development, advertising, corporate sponsorship and digital campaigns. She also draws relevant experience from her time as an account director within the investor relations team at Edison Investment Research.

Directors conduct an assessment of their performance each year and this is followed up by a conversation with me as Chairman. The Chairman's performance is assessed by the Senior Independent Director after he has consulted with all of the other Directors. A report is made to the Nomination Committee which meets annually to evaluate the performance of the Board, its Committees and the individual Directors. Following the results of this year's evaluation process, all Directors, save for myself, will stand for reappointment at the Annual General Meeting.

Annual General Meeting and Shareholder Contact

This year's Annual General Meeting will be held on Thursday, 29th October 2020 at 2.30 p.m. at 60 Victoria Embankment, London EC4Y 0JP. Despite the easing of lockdown measures which were put in place due to COVID-19, some restrictions remain, and given ongoing uncertainty about the course of this pathogen and due to the ongoing public health concerns, the Board has reluctantly decided to proceed with this year's Annual General Meeting by limiting attendance in person to only Directors or their proxies and representatives from JPMorgan. With a quorum in place the formal business will be able to proceed.

The Board is aware that many shareholders look forward to hearing the views of the Investment Managers and perhaps particularly this year given the uncertainties that lie ahead for the UK economy and markets. Accordingly a presentation with the Investment Managers, which would have been delivered at the Annual General Meeting, will be available for shareholders to watch on the Company's website approximately two weeks in advance of the Annual General Meeting. Shareholders are invited to address any questions they have for the Investment Managers or the Board by writing to the Company Secretary at the address on page 77 of the Company's Annual Report & Financial Statements for the year ended 30th June 2020 ('2020 Annual Report') or via email to invtrusts.cosec@jpmorgan.com

Due to technical restrictions, voting at the Annual General Meeting will be conducted on a poll with participation being limited to those present in person. The Board strongly encourages all shareholders to submit their votes in advance of the meeting, so that these are registered and recorded at the Annual General Meeting. Proxy votes can be lodged in advance of the Annual General Meeting either by post or electronically by 27th October 2020: detailed instructions are included in the Notes of the Notice of Annual General Meeting and on the proxy form that accompanies it.

If there are any changes to the above Annual General Meeting arrangements, the Company will update shareholders through the Company's website and, as appropriate, through an announcement on the London Stock Exchange.

The Board would like to thank shareholders for their understanding and co-operation at this difficult time. We very much hope that you and your families are safe and well and look forward to meeting with you next year when we hope normality has returned.

Prospects

One of the lessons of the last year is the need to adopt a flexible approach to stock selection to reflect the rapidly changing economic circumstances. The Investment Managers have proved adept at changing the portfolio to protect investors from the negative consequences of these major shocks to the domestic and indeed global economy. This flexibility, which is a distinguishing feature of the JPMorgan Mid Cap Investment Trust and differentiates it from larger UK funds, is likely to be required over the coming year when Brexit implementation is finally put in place, a vaccine for the COVID-19 virus is hopefully found and delivered and the long-term employment consequences of the past year's events become a priority for government policies.

Some of the other lessons from the experiences of the last year are the importance of strong corporate balance sheets and the resilience of companies to external shocks. The Manager's investment process has always emphasised these qualities in their stock selections so we should be well placed to identify the winning stocks of the future.

The valuation of the UK market relative to other markets appears to be low suggesting that the risks to the UK economy are perceived to be higher than for other countries. This perception may well change if the UK economic recovery exceeds current, very low, expectations. A competitive currency, supportive fiscal and monetary policies and attempts to reduce regulatory hurdles all should help to improve these perceptions.

I referenced earlier in my statement the strong performance of the mid-cap sector relative to global markets. This history, the low current valuations and changes to the perceptions of the UK economy should all help to reward shareholders over the medium term.

Michael Hughes

Chairman

17th September 2020

INVESTMENT MANAGERS' REPORT

Performance & Market Background

In the Company's last Annual Report we described the year to June 2019 as a rollercoaster ride. This financial year puts that minor market turmoil into perspective. The first half of the year, to December 2019, was dominated in the UK by Brexit (again) and by the General Election. It was our belief that the decisive Conservative victory in December boded well for the UK economy and for finality on our departure from the European Union.

All of this rapidly became irrelevant as the coronavirus pandemic ('COVID-19') spread across the world, causing misery, death and global economic turmoil. February and March 2020 witnessed precipitous declines in global stockmarkets, but the rebound was swift, as is now customary for stockmarkets, very much pre-empting the cessation of the COVID-19 impact on the world. The peak to trough fall in the FTSE 100 during the first half of 2020 was 34.9%, while for the FTSE 250 ex Investment Trusts index it was 42.0%. For the financial year as a whole, our index fell -13.3%. The Company marginally underperformed this, producing a return on net assets of -14.0%. This was primarily due to gearing, which detracted 1.9% from performance in the year. The discount remained fairly static, year on year, leading to a share price return of -15.0 %.

Source: J.P. Morgan/Morningstar.

All figures are on a total return basis.

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

Portfolio

The key contributors to performance in the year were a number of our largest high conviction holdings. These included Games Workshop, Spirent, Dunelm, JD Sports, Future and Computacenter. We also benefitted from the take-overs in the first half, of Greene King and EI Group, two pub companies which we were grateful that we did not still own during lockdown. The main underperformers were those companies perceived by the market to be hard hit by COVID-19, namely Dart Group (the parent company of Jet2), Cineworld, Vistry (formerly Bovis Homes) and OneSavings Bank. We maintain our holdings in all of these, and have added to both Dart and Vistry after their share price declines.

The impact of COVID-19 on the portfolio was significant in February and March, as certain sectors such as travel and leisure and retail were dramatic underperformers. In response to the pandemic we made a number of changes to the portfolio. However, key to our approach was to maintain a balance within the portfolio. We aimed to own those companies that would not be too hard hit by the lockdown, or indeed might benefit from it, together with those that despite suffering a significant impact in the period we believed to be very oversold and hence very undervalued. We also analysed and held within the portfolio those companies we considered would not only survive, but come out the other side stronger and with better competitive environments. Examples of companies where we increased our position as prices fell include Future, Dunelm, Computacenter, Dart and two housebuilders, Vistry and Bellway. New additions to the portfolio, which should benefit from recent events, included Kingfisher and Travis Perkins, (exposed to the growth in DIY), Team 17, (video gaming), Boohoo (online clothing retail) and Centamin (a gold producer). We exited a number of holdings including Capital & Counties (London real estate), Premier Oil, SSP (exposed to train and plane travel) Go-Ahead and Trainline (both with rail exposure). The result of these changes, plus changes to the benchmark composition over the year, have led to the portfolio having significant underweight positions in financials (mainly real estate) and industrials, and large overweight allocations in both of the consumer and technology sectors (as detailed on page 16 of the 2020 Annual Report).

Market Outlook

The initial official estimate for the GDP decline in Q2 2020 is -20.4% (quarter on quarter). The UK is now in recession. This is no surprise, given the effective shutdown of much of the economy in the quarter, and in fact is a less severe decline than was initially forecast. In August, the Bank of England revised upwards its estimates for GDP growth for the year to -9.5% for 2020, followed by +9% in 2021. On this basis, by the end of 2021 the Bank forecasts that the economy will have recovered to pre-COVID-19 levels. The Bank also forecasts that at its worst, by the end of this year, unemployment will be 7.5%. This is substantially less than original estimates of over 10%, and this is a crucial issue for the outlook. There is clearly huge uncertainty over the length and depth of this recession and of future unemployment levels after the end of the Government's furlough scheme.

While markets have recovered significantly from the spring lows of this year, and indeed in the USA markets are above pre-COVID-19 levels, the UK stockmarket has been a laggard. When we look at prospective 2021 valuations, based upon downgraded expectations for growth post COVID-19, the FTSE 250 index is on a 14x price/earnings ratio. We believe these forecasts are sensibly and cautiously based, and do not contain expectations of a rapid 'V-shaped' recovery. While clearly highly volatile, equity markets have carried out their function during this unprecedented period. Companies have been able to raise equity to fund holes in their balance sheets. To date this has been done mainly via placings, but we expect more rights issues to follow.

Our focus over the next eighteen months is first on the trajectory of COVID-19, and how that will affect our companies and the broader economy. Second is the shape and length of the recession, and how that will impact the consumer. Third is Brexit, where our working assumption is that the UK will trade with Europe on WTO terms after the end of the transition period on 31st December 2020. There are so many unknowns at present, but one key point of clarity from the Government is that we are not going to pursue the austerity route imposed after the last recession. There has been a huge amount of Government support for the economy over the last several months, and we do not expect this approach to change. The opportunity set that we currently see, the Government support and current valuations have meant that gearing currently sits at 7.5%. Our role as managers of your company is to be adaptable to changing circumstances, but, as ever, to focus on the winners. These are the companies that will not only survive but thrive in the post COVID-19 world, adapting to fit the new climate, as their competition falters.

Georgina BrittainKaten Patel

Investment Managers

17th September 2020

Principal and Emerging Risks

The Directors confirm that they have carried out a robust assessment of the principal and emerging risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity. The risks identified and the ways in which they are managed or mitigated are summarised below.

With the assistance of JPMF, the Audit & Risk Committee has drawn up a risk matrix, which identifies the key risks to the Company. These are reviewed and noted by the Board. These key risks fall broadly into the following categories:

• Investment and strategy

An inappropriate investment strategy, for example stock selection or the level of gearing, may lead to under-performance against the Company's benchmark index and peer companies, resulting in the Company's shares trading on a wider discount. The Board manages these risks through its investment restrictions and guidelines which are monitored and reported monthly. JPMF provides the Directors with timely and accurate management information, including performance data, both absolute and relative against peers, and attribution analyses, revenue estimates and shareholder analyses. The Board monitors the implementation and results of the investment process with the Investment Managers, who attend all Board meetings, and reviews data which shows statistical measures of the Company's risk profile. The Investment Managers employ the Company's gearing tactically, within a strategic range set by the Board.

Investment performance could be adversely affected by the loss of one or more of the investment management team. To reduce the likelihood of such an event, the Manager ensures appropriate succession planning and adopts a team based approach as well as special efforts to retain key personnel. A change of corporate control could also negatively impact the Company. The Board holds regular meetings with senior representatives of JPMAM in order to obtain assurance that the Manager continues to demonstrate a high degree of commitment to its investment trusts business through the provision of significant resources.

Poor performance may lead to a widening of the discount. The Board monitors the Company's premium/discount level and will seek, where deemed prudent, to address imbalances in the supply and demand of the Company's shares through a programme of share buybacks.

The Board holds a separate meeting devoted to strategy each year.

• Financial

The Company is exposed to market risk, liquidity risk and credit risk. The principal financial risk facing the Company is market risk arising from uncertainty about the future prices of the Company's investments. It represents the potential loss the Company might suffer through holding investments that could fall in value either due to general market movements or stock specific events. The latter is mitigated through diversification of investments in the portfolio. The Board reviews the portfolio and its gearing on a regular basis and has set investment restrictions and guidelines for the Manager. JPMF reports its adherence to these limits once a month to the Board.

The terms on which the UK may withdraw from the European Union are not clear, and it is difficult to assess the implications for UK mid cap stocks until there is more clarity. This continuing uncertainty provides a difficult backdrop for companies to operate in, and NAV volatility is expected to remain a feature for the Company over the coming 12 months.

Financial risks faced by the Company are further disclosed in note 22 on pages 60 to 63 of the 2020 Annual Report.

• Accounting, legal and regulatory

In order to qualify as an investment trust, the Company must comply with Section 1158 of the Corporation Tax Act 2010 ('Section 1158'). Details of the Company's approval are given under 'Structure and Objective of the Company' above. Should the Company breach Section 1158, it may lose investment trust status and as a consequence capital gains within the Company's portfolio would be subject to Capital Gains Tax. The Section 1158 qualification criteria are continually monitored by JPMF and the results reported to the Board each month. The Company must also comply with the provisions of the Companies Act 2006 and, as its shares are listed on the London Stock Exchange, the UKLA Listing Rules. A breach of the Companies Act could result in the Company and/or the Directors being fined or the subject of criminal proceedings. A breach of the UKLA Listing Rules may result in the Company's shares being suspended from listing which in turn would breach Section 1158. The Board relies on the services of its Company Secretary, JPMF, and its professional advisers to ensure compliance with the Companies Act 2006 and the UKLA Listing Rules.

Changes to the regulatory, legislative or taxation framework within which the Company operates may adversely affect the Company, either directly or indirectly. The Board receives regular updates about such changes affecting the investment industry from the Company's Manager and advisors and also trade associations and seeks external advice where appropriate.

• Operational and cyber crime

Disruption to, or failure of, the Manager's accounting, dealing or payments systems or the custodian's, depositary's or registrar's records could prevent accurate reporting and monitoring of the Company's financial position. The Company has appointed The Bank of New York Mellon (International) Limited to act as its depositary, responsible for overseeing the operations of the custodian, JPMorgan Chase Bank N.A., and the Company's cash flows. Details of how the Board monitors the services provided by the Manager, its associates and any other third party suppliers and the key elements designed to provide effective internal control are included in the Risk Management and Internal Control section of the Corporate Governance report on pages 30 and 31 of the 2020 Annual Report. The threat of cyber attack, in all its guises on any of the Company's outsourced suppliers, is regarded as at least as important as more traditional physical threats to business continuity and security. The Company benefits directly or indirectly from all elements of JPMorgan's Cyber Security programme. The information technology controls around the physical security of JPMorgan's data centres, security of its networks and security of its trading applications are tested by independent auditors and reported to the Audit & Risk Committee every six months.

• Climate Change:

Climate change, which barely registered with investors a decade ago, has today become one of the most critical issues confronting asset managers and their investors. Investors can no longer ignore the impact that the world's changing climate will have on their portfolios, with the impact of climate change on returns now inevitable. Financial returns for long-term diversified investors should not be jeopardised given the investment opportunities created by the world's transition to a low-carbon economy. The Board is also considering the threat posed by the direct impact on climate change on the operations of the Manager and other major service providers. As extreme weather events become more common, the resiliency, business continuity planning and the location strategies of our services providers will come under greater scrutiny.

• Global Pandemics:

The recent emergence and spread of coronavirus (COVID-19) has raised the emerging risk of global pandemics, in whatever form a pandemic takes. COVID-19 poses a significant risk to the Company's portfolio. At the date of this report, the virus has contributed to significant volatility in trading recently. The global reach and disruption to markets of this pandemic is unprecedented, so we have no direct comparatives from history to learn from. However, seismic events and situations in the past have also been the catalyst for violent market contractions. Time after time, markets have recovered, albeit over varying and sometimes extended time periods, and so we do have an expectation that the portfolio's holdings will not suffer a material long-term impact and should recover once containment measures ease. Should the virus become more virulent than is currently the case, it may present risks to the operations of the Company, its Manager and other major service providers.

Should efforts to control a pandemic prove ineffectual or meet with substantial levels of public opposition, there is the risk of social disorder arising at a local, national or international level. Even limited or localised societal breakdown may threaten both the ability of the Company to operate, the ability of investors to transact in the Company's securities and ultimately the ability of the Company to pursue its investment objective and purpose.

Transactions with the Manager and related party transactions

Details of the management contract are set out in the Directors' Report on page 25 of the 2020 Annual Report. The management fee payable to the Manager for the year was £1,926,000 (2019: £1,879,000) of which £nil (2019: £nil) was outstanding at the year end.

During the year £8,000 (2019: £62,000), including VAT, was payable to the Manager for administration of savings scheme products, of which £nil (2019: £25,000) was outstanding at the year end.

Included in administration expenses in note 6 on page 53 of the 2020 Annual Report are safe custody fees amounting to £5,000 (2019: £5,000) payable to JPMorgan Chase, N.A. of which £1,000 (2019: £1,000) 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 JPMorgan Securities Limited for the year was £1,000 (2019: £nil) of which £nil (2019: £nil) was outstanding at the year end.

The Company also holds cash in the JPMorgan Sterling Liquidity Fund, which is managed by JPMorgan. At the year end this was valued at £5,563,000 (2019: £1,466,000). Interest amounting to £48,000 (2019: £58,000) was receivable during the year of which £nil (2019: £2,000) was outstanding at the year end.

Handling charges on dealing transactions amounting to £7,000 (2019: £6,000) were payable to JPMorgan Chase, N.A. during the year of which £1,000 (2019: £1,000) was outstanding at the year end.

At the year end, total cash of £410,000 (2019: £287,000) was held with JPMorgan Chase, N.A. A net amount of interest of £2,000 (2019: £nil) was receivable by the Company during the year from JPMorgan Chase, N.A. of which £nil (2019: £nil) was outstanding at the year end.

The Directors are related parties and full details of their remuneration and shareholdings can be found on pages 35 and 36 and in note 6 on page 53 of the 2020 Annual Report.

STATEMENT of directors' Responsibilities

The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). Under Company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing the financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• state whether applicable United Kingdom Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements;

• make judgements and accounting estimates that are reasonable and prudent; 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.

The Directors are responsible for keeping adequate 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 enable them to ensure that the financial statements and the Directors' Remuneration Report comply with the Companies Act 2006.

The Directors 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 Directors are responsible for the maintenance and integrity of the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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

Each of the Directors, whose names and functions are listed in the Directors' 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.

The Directors' 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 is fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

For and on behalf of the BoardMichael HughesChairman

17th September 2020

Statement of Comprehensive income

For the year ended 30th June 2020

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

The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies. Net return/(loss) after taxation represents the profit/(loss) for the year and also Total Comprehensive Income.

STATEMENT OF CHANGES IN EQUITY

For the year ended 30th June 2020

1 The revenue reserve is distributable. The amount of the revenue reserve that is distributable is not necessarily the full amount of the reserve as disclosed in these financial statements of £12,299,000 as at 30th June 2020. This reserve may be used to fund distributions to investors.

statement of FINANCIAL POSITION

At 30th June 2020

statement of CASH FLOWS

For the year ended 30th June 2020

Reconciliation of net debt

Notes to the financial statements

For the year ended 30th June 2020

1. Accounting policies

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 FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' 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 October 2019.

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

The financial statements have been prepared on a going concern basis. The disclosures on going concern on page 32 of the Audit & Risk Committee Report within the 2020 Annual Report form part of these financial statements.

The policies applied in these financial statements are consistent with those applied in the preceding year.

2. Return/(loss) per share

3. Dividends

Dividends paid and proposed

All dividends paid and proposed in the year have been funded from the revenue reserve.

The Final dividend proposed in respect of the year ended 30th June 2019 amounted to £5,099,000. However the actual payment amounted to £5,098,000 due to share repurchases after the balance sheet date but prior to the share register record date.

The dividend proposed in respect of the year ended 30th June 2020 is subject to shareholder 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 30th June 2021.

4. Net asset value per share

5. Status of results announcement

2019 Financial Information

The figures and financial information for 2019 are extracted from the Annual Report and Accounts for the year ended 30th June 2019 and do not constitute the statutory accounts for the year. The Annual Report and Accounts include the Report of the Independent Auditors which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The Annual Report and Accounts will be delivered to the Register of Companies in due course.

2020 Financial Information

The figures and financial information for 2020 are extracted from the published Annual Report and Accounts for the year ended 30th June 2020 and do not constitute the statutory accounts for that year. The Annual Report and Accounts has been delivered to the Registrar of Companies and included the Report of the Independent Auditors which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

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.

17th September 2020

For further information:

Alison Vincent,

JPMorgan Funds Limited

020 7742 4000

ENDS

A copy of the 2020 Annual 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 2020 Annual Report will shortly be available on the Company's website at www.jpmmidcap.co.uk where up-to-date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.

JPMORGAN FUNDS LIMITED