JPMorgan Mid Cap Investment Trust plc
September 2020
Georgina Brittain, Portfolio Manager Katen Patel, Portfolio Manager
FOR PROFESSIONAL CLIENTS | NOT FOR RETAIL USE OR DISTRIBUTION Agenda
The case for UK mid & small caps
UK market outlook
Investment process
JPMorgan Mid Cap Investment Trust plc
2 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION The case for UK mid & small caps
A compelling long-term asset class
3 | FOR PROFESSIONAL CLIENTS | NOT FOR RETAIL USE OR DISTRIBUTION Long term outperformance of UK mid and small caps
CumulativeSource: returns
1800
1600 S&P 500 FTSE 250 (ex IT) 1400 Russell 2000 MSCI Europe (ex UK) Small Cap 1200 MSCI Europe (ex UK) MSCI AC Asia Pacific (ex Japan) 1000 MSCI Emerging Markets FTSE All-Share TOPIX 800
600
400
200
0 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20
… long term returns amongst the best in the world
Source: J.P. Morgan Asset Management, Bloomberg. All series are rebased to 100 as at 31 January 1995 to 30 June 2020. All indices in GBP and include reinvested dividends. Indices do not include fees or operating expenses and are not available for actual investment. Past performance is not a reliable indicator of current and future results.
4 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Opportunities for extraordinary growth
Innovators or disruptors
Nimble business models
Rapidly growing new markets
OneSavings Oxford JD Sports Future Spirent Bank Instruments
Image source: Shutterstock
The securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell.
5 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Mergers & Acquisitions
Sell-side Buy-side
Percentage of index acquired FTSE 100 Smaller companies Larger companies 12% FTSE 250 Small Cap FTSE 100 avg. 10% Corporate Family ownership ownership 8%
6% Less efficient or Fewer opportunities 4% sub-scale for business businesses improvement
2%
0% Limited overall Regulatory and
market impact logistical challenges
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: Liberum, Bloomberg, as at 31 December 2019. Past performance is not a reliable indicator for current and future results.
6 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Opportunities for active managers in under-researched companies
Rolling average analyst coverage by market cap
25
FTSE 100 FTSE 250 FTSE Small Cap 20
15
10
5
0
£m
... Average of 18 analysts covering each FTSE 100 company Average of 10 analysts covering each FTSE 250 company Average of 5 analysts covering each FTSE Small Cap company
Source: Liberum, Datastream. As at 7 January 2020.
7 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION The UK Market Outlook
8 | FOR PROFESSIONAL CLIENTS | NOT FOR RETAIL USE OR DISTRIBUTION Economic outlook: pandemic woes visible to all, outlook beyond unclear
UK retail sales and consumer confidence UK GDP growth forecasts for 2020 at historic lows
8 10 10%
0 0 5%
-8 -10 0% -5% -16 -20 UK Retail Sales % YOY (LHS)
Real GDP, YoY % YoY GDP, Real -10% -24 -30 GFK Consumer Confidence (RHS) -15% -32 -40 1900 1920 1940 1960 1980 2000 2020 2005 2008 2011 2014 2017 2020 Outturn IMF PG & Co OBR NIESR
UK Purchasing Managers Index Brent crude oil price ($/barrel)
70 100 60 80 50 60 40 Manufacturing PMI 40 30 Services PMI Construction PMI 20 20 0 10 2015 2016 2017 2018 2019 2020 2005 2008 2011 2014 2017 2020 Sources: top left chart: ONS, GfK, with data from January 2005 to May 2020; bottom left chart: Bloomberg, data from January 2005 to May 2020; top right chart: Panmure Gordon, data as of 30th April 2020; bottom right chart: Bloomberg, data from January 2015 to June 2020. Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. Past performance is not a reliable indicator of current and future performance.
9 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION UK market valuation
FTSE 100 FTSE 250 NSCI & AIM
12 m fwd P/E ratio (ex loss-makers) 14.4x 15.8x 14.2x
Forecast median earnings growth (12m fwd) 1.2% 8.0% 9.0%
Forecast dividend yield (ex non-pay) 4.2% 3.0% 3.0%
12m forward rolling median P/E – largest to smallest
Source: Top table is from Peel Hunt as at 7 September 2020; bottom chart is from Liberum as at 10 September 2019, using Datastream. Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met.
10 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Are UK equities still cheap? UK market cheap on price to book and near the lows of the 1980s
UK Market Price to Book (x)
UK Market Price To Book Value Max Min Median 4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0 1980 1990 2000 2010 2020
Source: Datastream, Morgan Stanley Research. Data from 1 January 1980 to 23 June 2020.. Past performance is not a reliable indicator of current and future results
11 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION …and cheap vs. other international equity markets UK looks very cheap when compared to other markets
The >30% discount for MSCI UK vs. MSCI World is at over 40 year low
10 MSCI UK vs MSCI World Average % Premium On PE, PBV & PDiv
0
-10 Median -20
-30
-40
-50
-60 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019
Source: J.P. Morgan Asset Management using data from MSCI, I/B/E/S, Morgan Stanley Research. Based on PE (Price to Earnings), PBV (Price to Book Value) and PD (Price to Dividend). Average relative valuations use 12 month forward data where available. Data from 31 December 1974 to 31 May 2020. Past performance is not a reliable indicator of current and future results.
12 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Investment Process
13 | FOR PROFESSIONAL CLIENTS | NOT FOR RETAIL USE OR DISTRIBUTION What do we look for in a company? For every stock we ask 3 questions:
IS IT A GOOD BUSINESS? We consider the quality of the company through its profitability, sustainability of earnings and capital allocation discipline
IS IT ATTRACTIVELY VALUED? We look at a company’s valuation to assess if its future prospects have been incorrectly estimated by the market
IS THE OUTLOOK IMPROVING? Assessing the operational momentum of the business and how is this being reflected in expectations
THREE COMPLEMENTARY CONSIDERATIONS THAT HELP PREDICT STOCK RETURNS
14 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Stock specific considerations: A differentiated approach to fundamental analysis
Focused fundamental research on the drivers of share prices
Stock specific considerations
2,945 820 408 60 Company newsflow Fundamental Company meetings IPOs and Placings (Comments written) revisions evaluated
Source: J.P. Morgan Asset Management, Data for International Equity Group – European Behavioural Finance Team for calendar year 2019 for UK equities only.
15 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Investment philosophy
We believe that attractively valued, high quality stocks with positive momentum outperform the market
VALUE QUALITY MOMENTUM
Themes: Themes: Themes:
- Out of favour stocks with - Market leaders - Structurally growing end catalysts markets - High return of capital - Cyclical end market recovery - Bolt-on acquisition strategy - Disciplined capital allocation - High cash generation - Disruptive technology
The numbers: The numbers: The numbers:
Fwd PE Trust Index ROIC Trust Index Momentum Trust Index
18.5% 17.5% 19.9% 12.9% -2.0% -9.0%
Source: J.P. Morgan Asset Management, FactSet, as of 31 August 2020. Figures reported are weighted medians. Figures shown are Value = 12 month forward price to earnings, Quality = return on invested capital, Momentum = 3 month historic earnings per share revisions. The index is FTSE 250 ex IT. The portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the investment manager without notice.
16 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION A deep understanding of the portfolio’s positioning
A powerful tool for visualizing exposures
Red flags Liquidity analysis
Style exposures
Fundamental adjustments
Top stock actives Alpha drivers
ESG rating
17 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION The investment process in action – Dunelm
High quality business Dunelm– Total Return
• UK Market leader in fragmented homewares category GBP Share Price Consensus EPS Estimate GBP • Improving product range and well-managed supply chain 14 0.80 13 0.75 0.70 Attractively valued 12 0.65 11 • Consistently cash generative and strong balance-sheet 0.60 • Disciplined approach to shareholder returns 10 0.55 9 0.50 0.45 Promising outlook 8 0.40 7 • Market share gains driving multi-channel revenue growth 0.35 6 0.30 • Margin expansion potential Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020
Source: J.P. Morgan Asset Management, Bloomberg. Share Price 30 June 2019 – 30 June 2020. * The consensus EPS estimate is an arithmetic average of selected broker estimates for earnings per share of the company for the year shown. The companies/securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell.. Past performance is not a reliable indicator of current and future results.
18 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION The investment process in action – Computacenter
High quality business Computacenter – Total Return
• Global IT infrastructure/services provider. High returns on GBP Share Price Consensus EPS Estimate GBP capital and track record of outperforming market estimates 20 0.96 0.94 18 Attractively valued 0.92 16 • Strong cash-flow generation, high dividend growth and net 0.90 cash balance sheet 14 0.88
0.86 12 Promising outlook 0.84 10 0.82 • Benefitting from a multi-year trend of digital investment by 8 0.80 enterprise and public-sector clients Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020
Source: J.P. Morgan Asset Management, Bloomberg. Share Price 30 June 2019 – 30 June 2020. * The consensus EPS estimate is an arithmetic average of selected broker estimates for earnings per share of the company for the year shown. The companies/securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. Past performance is not a reliable indicator of current and future results.
19 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION The JPMorgan Mid Cap Investment Trust plc
20 | FOR PROFESSIONAL CLIENTS | NOT FOR RETAIL USE OR DISTRIBUTION A compelling way of investing in the middle JPMorgan Mid Cap Investment Trust plc
Annualised performance to 31 August 2020 Georgina Brittain Katen Patel Portfolio Manager Portfolio Manager Experience: 25 / 25 Experience: 15 / 7 15% Trust Benchmark 11.68 10% 8.72
Nimble and Portfolio size £256m 5% 3.61 2.06 focused No. of stocks 69 0%
-1.98 -5% -2.64 Prospective dividend yield 3.3% Inexpensive* Discount to NAV 11.5% -10% -7.76 -9.30 -15% 1 year 3 years p.a. 5 years p.a. 10 years p.a. Performance 3.8% outperformance p.a.** Excess return +1.70 +0.68 +1.52 +2.72 (%)
Source: J.P. Morgan Asset Management. As at 31 August 2020 unless otherwise stated. * data as at 31 July 2020. NAV returns are net of fees, in GBP, with income reinvested. **Since inception of current fund manager 30 April 2012. Prospective dividend yield is indicative and based on mid market prices, and include the declared and net prospective dividends for the current financial year. Benchmark is the FTSE 250 ex Investment Trusts. Geometric excess returns. Past performance is not a reliable indicator for current and future results.
21 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Performance attribution
Stock: 3.24 Attribution summary JPMorgan Mid Cap Investment Trust plc Sector: -1.71 FTSE 250 Index (ex for 1 year ending 31 August 2020 Benchmark Investment Trusts) (£)
Stock attribution
Relative Stock Impact Relative Stock Impact Top 10 contributors Top 10 detractors weight (%) return (%) (%) weight (%) return (%) (%)
Games Workshop Group 4.64 115.51 3.77 Pennon Group Not Held 38.90 -1.09
Dunelm Group 2.82 73.43 1.71 Dart Group 1.46 -39.26 -1.08
Spirent Communications 2.28 60.80 1.38 Vistry Group 1.83 -32.55 -1.00
JD Sports Fashion 4.50 17.68 1.24 National Express Group 1.13 -69.84 -0.82
Softcat 2.38 36.32 1.07 Bank of Georgia Group 1.36 -40.85 -0.71
Computacenter 1.99 53.62 1.05 GVC Holdings -0.09 -40.60 -0.68
Future 2.60 25.63 0.95 Cineworld Group 0.66 -70.34 -0.59
Avast 1.44 44.86 0.84 Bellway 2.58 -15.21 -0.57
Pets At Home 1.53 31.40 0.64 B&M European Value Retail -0.63 18.43 -0.50
Micro Focus International -0.55 -46.05 0.53 IG Group Holdings -1.00 56.5 -0.47
Source: Factset. Data is gross of fees in GBP. Attribution results are for indicative purposes only. The portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the Investment Manager without notice. Past performance is not a reliable indicator of current and future results.
22 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Portfolio positions
FTSE 250 Index (ex Benchmark JPM Mid Cap Investment Trust plc Investment Trusts) (£) as of 31 August 2020
Top 10 overweight positions
Stock Portfolio weight (%) Benchmark weight (%) Relative position (%)
Games Workshop Group 6.6 1.3 5.3
Dunelm Group 5.3 0.6 4.7
JD Sports Fashion 4.0 0.0 4.0
Future 4.2 0.6 3.5
Intermediate Capital Grp 3.3 0.0 3.3
Computacenter 3.5 0.6 2.9
Softcat 3.6 0.7 2.8
Spirent Communications 3.6 0.7 2.8
OneSavings Bank 3.2 0.5 2.7
Wizz Air Holdings 3.8 1.1 2.7
Total 41.1 6.1 34.7
Source: J.P. Morgan Asset Management, Factset. The investment trust is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the Investment Manager without notice.
23 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Portfolio positions
FTSE 250 Index (ex Benchmark JPMorgan Mid Cap Investment Trust plc Investment Trusts) (£) as of 31 August 2020
Active and absolute sector positions
Relative to benchmark (%)
15 13.5
10 7.4 6.5
5 2.9 2.7
0
-2.6 -2.6 -5 -2.7 -2.8
-6.9 -10 General Software Leisure Tech. H'h' Aerospace & Support Food Nonlife REITs Retailers & Goods Hardware Goods Defense Services Producers Insurance Comp. & & Serv. Equip. Home Construct.
Portfolio 20.2 9.7 7.7 3.6 5.8 1.0 8.4 0.0 2.4 3.7 Weight (%) Source: J.P. Morgan Asset Management, Factset. The investment trust is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the Investment Manager without notice.
24 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION COVID-19: Portfolio changes
Buys
– Adding to existing high conviction holdings – Pets At Home, Future
– New opportunities created by share price volatility – IMI, Weir Group
Sells
– Position reduction due to relative valuation – Greggs, Marshalls
– Sold due to preferred opportunities elsewhere – Capital & Counties, Hikma, IWG
Gearing
– Initially reduced to provide firepower for opportunities (placings/share price volatility)
Subsequently increased as opportunities arose
Source: J.P. Morgan Asset Management as of 11 September 2020. The portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the investment manager without notice.
25 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION The UK stock market is not the UK economy Revenue from the FTSE 250 ex IT split out by geographic region
1% Japan 1% Other 2% Pacific, ex Japan 12% Europe ex UK 52% United Kingdom
16% North America
16% Emerging Markets
Image source: Shutterstock. Data source J.P. Morgan Asset Management, FTSE 250 ex IT revenue split by geographic region as at 30 June 2020.
26 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Long term investment performance
Cumulative returns 31 August 2020 (%)
JPMorgan Mid Cap Investment Trust NAV FTSE 250 ex Investment Trusts 350%
300%
250%
200% Share price discount to NAV is 11.5% 150% +67% 100%
50% Apr 2012 Apr 2013 Apr 2014 Apr 2015 Apr 2016 Apr 2017 Apr 2018 Apr 2019 Apr 2020
...long term alpha generation by current portfolio managers
Source: J.P. Morgan Asset Management. Data from 30 April 2012 – 31 August 2020. Georgina Brittain was named portfolio manager in April 2012. NAV returns are net of fees, in GBP, with income reinvested. All indices in sterling and include reinvested dividends. Indices do not include fees or operating expenses and are not available for actual investment. Returns are cumulative. Past performance is not a reliable indicator of current and future performance.
27 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Summary
Opportunities for extraordinary growth by small and mid cap companies
Robust, disciplined process. Established and refined over three decades
Strong long term trust performance vs. benchmark and peers
Past performance is not a reliable indicator of current and future performance.
28 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Appendix
29 | FOR PROFESSIONAL CLIENTS | NOT FOR RETAIL USE OR DISTRIBUTION Performance JPMorgan Mid Cap Investment Trust plc as of 31 August 2020
Annualised performance, net of fees (%)
One Three Five Three months YTD year years years
JPMorgan Mid Cap NAV (debt at fair value) 5.87 -22.02 -7.76 -1.98 3.61
JPMorgan Mid Cap share price 5.69 -30.99 -8.00 -2.03 1.57
FTSE 250 ex. Investment Trusts 4.20 -21.60 -9.30 -2.64 2.06
Excess return (NAV) +1.60 -0.54 +1.70 +0.68 +1.52
Calendar year performance, net of fees (%)
2015 2016 2017 2018 2019
JPMorgan Mid Cap NAV (debt at fair value) 23.93 -2.84 29.03 -18.80 38.42
JPMorgan Mid Cap share price 42.45 -11.30 30.58 -16.90 43.80
FTSE 250 ex. Investment Trusts 12.04 5.08 18.24 -15.15 30.79
Excess return (NAV) +10.62 -7.54 +9.13 -4.30 +5.83
Source: J.P. Morgan Asset Management/Morningstar. Net asset value performance data has been calculated on a NAV to NAV basis, including ongoing charges and any applicable fees, with any income reinvested, in GBP. NAV is the cum income NAV with debt at fair value, diluted for treasury and/or subscription shares if applicable, with any income reinvested. Share price performance figures are calculated on a mid market basis in GBP with income reinvested on the ex-dividend date. The performance of the company's portfolio, or NAV performance, is not the same as share price performance and shareholders may not realise returns which are the same as NAV performance. Indices do not include fees or operating expenses and you cannot invest in them. Geometric excess returns. Periods over one year are annualised. Past performance is not a reliable indicator for current or future results.
30 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Premium/Discount to NAV
JPM Mid Cap Investment Trust plc
0
-5
-10
-15
-20 Percent Premium
-25
-30 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 May-20 Aug-20
Source: Bloomberg. Data from 31 August 2017 to 31 August 2020. Past performance is not a reliable indicator for current and future results.
31 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION 5 years' historic gearing level vs. benchmark
JPM Mid Cap Investment Trust plc
Gearing Level Index 0.16 Month end gearing levels - LHS FTSE 250 ex IT 26,000
0.14 24,000
0.12 22,000
0.10 20,000 0.08 18,000 0.06 16,000 0.04 14,000 0.02
12,000 -
(0.02) 10,000
(0.04) 8,000 Aug 15 Dec 15 Apr 16 Aug 16 Dec 16 Apr 17 Aug 17 Dec 17 Apr 18 Aug 18 Dec 18 Apr 19 Aug 19 Dec 19 Apr 20 Aug 20
Source: Bloomberg, J.P. Morgan Asset Management. As at 31 August 2020 (weightings exclude cash/cash equivalents). Investment trusts may utilise gearing which will exaggerate market movements both down and up which could mean sudden and large falls in value. For further details, please refer to the trust’s annual report and accounts. Gearing is the ability to borrow money to invest that money on behalf of the shareholders.
Past performance is not a reliable indicator for current and future returns.
32 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Benefits of mid & small cap strategy in an actively managed closed ended structure
Benefits Reserves provide the ability to smooth income return
Pence per share Liquid access to a less 45 No inflows/ outflows Dividend liquid asset class 40 Special dividend 35 Earnings per share Reserves provide the ability Net revenue reserves per share Active use of gearing to 30 to smoothing income return enhance returns for shareholders 25
20
Independent Board of 15 Higher disclosure Directors provide oversight 10
5 Share buybacks at a Opportunity for investors to discount to NAV accretive buy shares at a discount to 0 to shareholders NAV
…with the opportunity for active managers to add value in under-researched companies
Source: J.P. Morgan Asset Management. All figures based on the JPMorgan Mid Cap Trust plc. Data as at 31 December 2019. Past performance is not a reliable indicator for current and future results.
33 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION J.P. Morgan International Equity Group – Drawing on resources around the world
Malcolm Smith Head of the International Equity Group
Quantitative Research* Fundamental Research 10 years average industry experience 19 years average industry experience
Nick Horne Mark Ferguson Head of Global Structured Equity Group Global Head of Equity Research Christian Pecher David Small Philippa Clough Asia Head of Research North America Head of Research Head of Quantitative Research - London 16 Asia Research Analysts 26 North America Research Analysts 7 Quantitative Research Analysts Maciej Wasilewicz Shumin Huang & Giovanni Carriere Won Choi Europe Head of Research Emerging Markets Heads of Research Head of Quantitative Research – New York 14 Europe Research Analysts 31 Emerging Market Research Analysts 7 Quantitative Research Analysts ^^^ 10 Product Analysts*
Portfolio Management 19 years average industry experience
56 Portfolio Managers**, supported by a team of 12 Associate Portfolio Managers
Managing Global, International^, Europe & UK Equity Portfolios
Investment Specialists Implementation* Trading & Data Scientists*** 19 years average industry experience 19 years average industry experience 21 years average industry experience^^
Frances Gerhold James Ford Kristian West 11 Investment Specialists in Asia, Europe & the US 10 Implementation Specialists 31 Equity Traders 7 Trading Analytics & Strategy Supported by a team of 14 7 Data Scientists
Data as at 30 June 2020. * Some of the team members have additional PM responsibilities. Quants research team for New York includes VP & above **Some of the team members have additional Implementation, Quantitative Research or Analyst roles. ^ International is Global ex-US. ^^ex-data scientists. *** Trading & Data scientists details are as of March 31, 2020. ^^^ VP & above. Note this illustrates the resources available and does not necessarily reflect reporting lines 34 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION European Small and Mid Cap team
Continental Europe UK Small & Mid Cap
Francesco Conte Guy Anderson Georgina Brittain Industry: 31 yrs Industry: 18 yrs Industry: 25 yrs Firm: 21 yrs Firm: 8 yrs Firm: 25 yrs
Ed Greaves Katen Patel Ed Hezlet Industry: 13 yrs Industry: 15 yrs Industry: 5 yrs Firm: 9 yrs Firm: 7 yrs Firm: 5 yrs
Jack Featherby Anthony Lynch Manasij Hajra Industry: 6 yrs Industry: 11 yrs Industry: <1 yrs Firm: 2 yrs Firm: 11 yrs Firm: <1 yrs
Jules Bloch Industry: 4 yrs Firm: 2 yrs
Team as of June 30, 2020. Number of years Industry/Firm as of March 31, 2020.
35 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Portfolio implementation Dedicated team ensures efficient portfolio implementation, in collaboration with our award-winning trading desk
Implementation team Trading team
Guideline management
Corporate actions
Account on/off boarding
Cashflow monitoring
Prime broker interactions
Portfolio reporting
Source: J.P. Morgan Asset Management. Data as at 31 December 2019. 1Markets Choice Awards: a peer-based survey of exchanges, sell-side desks, institutional buy-side investors, hedge funds and technology providers. 2Financial News Trading & Technology Awards
Past performance is not a reliable indicator of current and future results.
36 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Integrating ESG into our investment approach
Quantitative ranking Fundamental analysis Fundamental analysis to Bottom-up ESG analysis Third party data sources integrated understand into proprietary methodology impact Materiality focus Data can be incomplete Improvement / deterioration as well as absolute score Understand transmission mechanisms In-house ‘red flags’ model
– Corporate governance Stewardship – Forensic accounting Informs scoring Partnership with specialist ESG team – Financial distress What is the impact on shareholder Challenge value data
...systematic and explicit consideration of ESG factors throughout the investment process
ESG - Environmental, Social, & Governance.
37 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION The UK Edge
Image source: J.P. Morgan Asset Management.
38 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Biography
Georgina Brittain, Managing Director, is a portfolio manager for small and mid cap strategies within the J.P. Morgan Asset Management International Equity Group – Behavioural Finance Team, based in London. Georgina is a fund manager for the JPM UK Smaller Companies Fund, the JPMorgan Smaller Companies Investment Trust and co-manager for the JPMorgan Mid Cap Investment Trust. She is also a co-manager for our range of European small cap funds. An employee since 1995, Georgina was previously an analyst in the UK research department. Georgina obtained an M.A. in Classics from Oxford University, and earned a Diploma in Law from City University, London. She is a qualified barrister.
Katen Patel, Executive Director, is a portfolio manager for small and mid cap strategies within the J.P. Morgan Asset Management International Equity Group – Behavioural Finance Team. He is the co-manager of the JPM UK Smaller Companies Fund, the JPM UK Equity Income Fund, the JPMorgan Smaller Companies Investment Trust and the JPMorgan Mid Cap Investment Trust. An employee since April 2013, he previously worked at HSBC Bank Plc in a European equity sales role. He obtained a B.Sc. in Management from the London School of Economics. Katen is a CFA charterholder.
… expertise, experience and the backing of a large group
39 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Investment objective and risk profile JPMorgan Mid Cap Investment Trust plc (the Company) as at June 2020
Investment objective The Company aims to achieve capital growth from investing in medium sized UK listed companies, by outperformance of the FTSE Mid 250 Index. The company will predominantly invest in quoted companies from the FTSE Mid 250 Index, although, where appropriate, it may invest in quoted UK companies outside of this index as well as companies quoted on the Alternative Investment Market which is the London Stock Exchange market for smaller, growing companies. The company has the ability to use borrowing to gear the portfolio within the range of 5% net cash to 25% geared in normal market conditions.
Key Risks
. External factors may cause an entire asset class to decline in value. Prices and values of all shares or all bonds could decline at the same time, or fluctuate in response to the performance of individual companies and general market conditions.
. This Company may utilise gearing (borrowing) which will exaggerate market movements both up and down.
. This Company may also invests in smaller companies which may increase its risk profile.
. The share price may trade at a discount to the Net Asset Value of the Company.
. The single market in which the Company primarily invests, in this case the UK, may be subject to particular political and economic risks and, as a result, the Company may be more volatile than more broadly diversified Companies.
. Companies listed on AIM tend to be smaller and early stage companies and may carry greater risks than an investment in a company with a full listing on the London Stock Exchange.
Please refer to the Investor Disclosure Document, latest annual report, and Key Information Document (KID) for more information relating to the Company.
40 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Important information
For Professional Clients only – not for Retail use or distribution.
This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken as advice or a recommendation, to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not reliable indicators of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy.
Investment is subject to documentation. The Investor Disclosure Document, Key Features and Terms and Conditions and Key Information Document can be obtained free of charge from JPMorgan Funds Limited or www.jpmam.co.uk/investmenttrust. This communication is issued by JPMorgan Asset Management (UK) Limited, which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.
Material ID: 0903c02a829f4e05
41 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION