The Jpmorgan Smaller Companies Investment Trust Plc

The JPMorgan Smaller Companies Investment Trust plc

July 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

The JPMorgan Smaller Companies 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 performance of UK mid and small caps

Cumulative returns

1,800

1,600 S&P 500 FTSE 250 (ex IT) 1,400 Russell 2000 MSCI Europe (ex UK) Small Cap 1,200 MSCI Europe (ex UK) MSCI AC Asia Pacific (ex Japan) 1,000 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 December 1994 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 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

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

FTSE 100 FTSE 250 FTSE Small Cap 20

£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 15% 10% 0 0 5% -8 -10 0% -16 -20 UK Retail Sales % YOY -5% (LHS) NIESR, -7.2% -24 -30 -10% IMF, -10.2% GFK Consumer % YoY GDP, Real OBR, -12.4% Confidence (RHS) -15% -32 -40 1900 1920 1940 1960 1980 2000 2020 2005 2008 2011 2014 2017 2020 Outturn IMF 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 June 2020; bottom left chart: Bloomberg, data from January 2005 to June 2020; top right chart: Panmure Gordon, data as of 14th July 2020; bottom right chart: Bloomberg, data from January 2015 to July 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

2021 P/E ratio (ex loss-makers) 13.4x 13.3x 11.7x

2021 median earnings growth 12.1% 19.0% 19.6%

2021 dividend yield (ex non-pay) 4.5% 3.5% 3.6%

12m forward rolling median P/E – largest to smallest

Source: Top table is from Peel Hunt as at 13 July 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 Global earnings expectations and equity valuations GTM – UK | 48

Consensus estimates for global earnings per share growth Global forward price-to-earnings ratios % change year on year, earnings per share estimates x, multiple 50 40x75x 45 2020 2021 Current 40 35x 35 Range since 1990 30 Average since 1990 25 30x 20 15 25x 10 5 20x

0 Equities -5 -10 15x -15 -20 10x -25 -30 5x -35 -40 -45 0x US Europe UK Japan EM US Europe UK Japan EM ex-UK ex-UK

Source: (Left) FTSE, IBES, MSCI, Refinitiv Datastream, Standard & Poor’s, TOPIX, J.P. Morgan Asset Management. MSCI indices are used for Europe ex-UK and EM. UK is FTSE All-Share, US is S&P 500 and Japan is TOPIX. Data used are in local currency, except for EM, which is in US dollars. (Right) IBES, MSCI, Refinitiv Datastream, Standard & Poor’s, J.P. Morgan Asset Management. MSCI indices are used for all regions/countries (due to data availability), except for the US, which is represented by the S&P 500. Past performance is not a reliable indicator of current and future results. Guide to the Markets - UK. Data as of 22 June 2020. Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the 11 publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. 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

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:

FCF yield Trust Index ROIC Trust Index Momentum Trust Index

Small Cap 6.5% 3.7% Small Cap 13.5% 9.3% Small Cap -13.2% -17.7%

Source: J.P. Morgan Asset Management, FactSet, as of 30 June 2020. Figures reported are weighted medians. Figures shown are Value = Free Cash Flow Yield, Quality = return on invested capital, Momentum = 3 month historic earnings per share revisions. Small Cap is the JPMorgan Smaller Companies Investment Trust plc, whose index is Numis Smaller Companies plus AIM ex IT.

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 Smaller Companies Investment Trust plc

20 | FOR PROFESSIONAL CLIENTS | NOT FOR RETAIL USE OR DISTRIBUTION Fund summary JPM Smaller Companies Investment Trust plc

Annualised performance to 30 June 2020 Georgina Brittain Katen Patel Portfolio Manager Portfolio Manager Experience: 25 / 25 Experience: 15 / 7 15% Trust Benchmark 13.11 9.31 10% 6.98 7.22

Nimble and  Portfolio size £223.4m 5% 2.11 focused  No. of stocks 88 0.08 0%

-5% -3.54  Discount to NAV 13.4% Inexpensive  Historic dividend yield 1.6% -10% -10.74 -15%  Strong long term outperformance 1 year 3 years p.a. 5 years p.a. 10 years p.a.

Performance  1st in peer group over 3 years and over 1 Excess +12.12 +10.91 +5.00 +3.47 year* return (%)

Source: J.P. Morgan Asset Management. As at 30 June 2020 unless otherwise stated. Experience: Industry/Firm as of 31 March 2020. NAV returns are net of fees, in GBP, with income reinvested. 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 changed from the FTSE Smaller Companies Index ex IT to the NUMIS Smaller Companies Index plus AIM ex IT on 1st January 2019. *Peer group of 26, Morningstar peer quartile ranking within EAA CE UK Small-Cap Equity universe. Morningstar™ rankings/universe: © Morningstar. All Rights Reserved. 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: 11.68 Attribution summary JPM Smaller Companies Investment Trust plc Sector: -0.17 Numis Smaller Companies for 12 months ending 30 June 2020 Benchmark plus AIM (ex IT) Index

Stock attribution

Relative Stock Impact Relative Stock Impact Top 10 contributors Top 10 detractors weight (%) return (%) (%) weight (%) return (%) (%)

Games Workshop Group 4.07 65.73 2.41 Vistry Group 1.33 -25.28 -0.68

Avon Rubber 2.07 136.87 1.89 OneSavings Bank 2.90 -25.66 -0.64

Team17 Group 2.25 88.62 1.57 Dart Group 1.84 -1.24 -0.63

Judges Scientific 3.01 52.52 1.52 ITM Power Not Held 686.12 -0.52

Future 3.38 31.78 1.41 Centamin -0.63 9.85 -0.50

Dunelm Group 2.86 37.76 1.13 Ferrexpo -0.15 -48.98 -0.48

Spirent Communications 1.80 61.26 0.98 Go-Ahead Group 0.28 -59.69 -0.45

Liontrust Asset Mgmt 1.42 88.25 0.95 GlobalData Not Held 89.69 -0.45

Codemasters Group Holdings 1.66 50.44 0.83 TBC Bank Group 0.82 -43.70 -0.43

Ei Group 0.75 43.34 0.67 Rank Group 0.31 -36.21 -0.35

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

Numis Smaller Companies plus JPM Smaller Companies Investment Trust plc Benchmark AIM (excluding Investment as of 30 June 2020 Companies) Index

Top 10 overweight positions

Stock Portfolio weight (%) Benchmark weight (%) Relative position (%)

Games Workshop Group 4.8 0.0 4.8

Dunelm Group 4.5 0.0 4.5

Future 4.6 0.7 3.9

Team17 Group 3.6 0.4 3.2

Judges Scientific 3.3 0.2 3.1

Computacenter 3.1 0.0 3.1

Softcat 2.5 0.0 2.5

OneSavings Bank 2.2 0.0 2.2

Pets At Home 2.8 0.7 2.2

Avon Rubber 2.7 0.5 2.1

Total 34.1 2.5 31.6

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

Numis Smaller Companies plus JPM Smaller Companies Investment Trust plc Benchmark AIM (excluding Investment as of 31 December 2019 Companies) Index

Top 10 overweight positions

Stock Portfolio weight (%) Benchmark weight (%) Relative position (%)

Games Workshop Group 4.5 0.8 3.7

OneSavings Bank 3.7 0.4 3.3

Future Plc 3.7 0.5 3.2

Judges Scientific 3.2 0.1 3.1

4Imprint Group 3.4 0.4 3.0

Forterra Plc 2.8 0.3 2.5

Dunelm Group 3.5 0.9 2.5

Dart Group 3.5 1.0 2.5

MJ Gleeson 2.6 0.2 2.4

Marshalls 3.1 0.7 2.3

Total 34.0 5.3 28.5

24 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Portfolio positions

Numis Smaller Companies JPMorgan Smaller Companies Investment Trust plc plus AIM (excluding Benchmark as of 30 June 2020 Investment Companies) Index

Active and absolute sector positions

Relative to benchmark (%)

12 11.2

8 6.2 6

3.3 4 3.0 2.8 2

-2 -1.9 -2.1 -2.3 -2.4 -4 -3.1 Leisure General H'h' Software Media Pharmaceuticals & Oil Support Construction Mining Goods Retailers Goods & Biotechnology & Services & & Comp. Gas Materials Home Serv. Producers Construct.

Portfolio 13.6 10.1 5.2 10.8 7.8 2.5 1.9 4.4 2.4 2.0 Weight (%)

25 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION COVID-19: Update

. The Smaller Companies investment trust is focused on bottom up stock selection and that has not changed as a result of the COVID-19 crisis.

. Paying particular attention to firms balance sheets and cash flow, but this is not a deviation from how we pick stocks. . Picking the long term winners is our area of expertise, not timing the market.

. Assessing relative upside on a multi-year approach to determine new buys and sells for the portfolio

. Revenue reserves: . Smaller Companies revenue reserve as at 31st January 2020 was £ 6,004,000 which provides approximate cover of 1.4x the 2019 dividend rate.

Source: J.P. Morgan Asset Management as of 13 May 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.

26 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION COVID-19 – Portfolio changes

 Buys

– Adding to existing high conviction holdings – Media, Construction, Retail, Technology

– New opportunities created by share price volatility – Industrials, Leisure, Technology

 Sells

– Position reduction due to relative valuation – Leisure, Construction, Real estate

– Sold due to preferred opportunities elsewhere – Transport, Financials

 Gearing

– Reduced to provide firepower for opportunities (placings/share price volatility)

 Already starting to be utilized

 Highly selective participation in placings to date

Source: J.P. Morgan Asset Management as of 30 June 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.

27 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Long term investment performance

Cumulative returns 30 June 2020 (%)

450%

400% JPMorgan Smaller Companies Investment Trust NAV

350% Benchmark

300%

250%

200% +107% 150%

100% Share price discount to NAV is 13.4%

50% Oct 2009 Oct 2010 Oct 2011 Oct 2012 Oct 2013 Oct 2014 Oct 2015 Oct 2016 Oct 2017 Oct 2018 Oct 2019

...long term alpha generation by current portfolio managers

Source: Bloomberg, J.P. Morgan Asset Management. Data from 31 October 2009 – 30 June 2020. Benchmark changed from the FTSE Smaller Companies Index ex IT to the NUMIS Smaller Companies Index plus AIM ex IT on 1 January 2019. 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.

28 | 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.

29 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Appendix

30 | FOR PROFESSIONAL CLIENTS | NOT FOR RETAIL USE OR DISTRIBUTION Performance JPMorgan Smaller Companies Investment Trust plc as of 30 June 2020

Annualised performance, net of fees (%)

One Three Five Three months YTD year years years

JPMorgan Smaller Comp. NAV (debt at fair value) 22.00 -20.14 0.08 6.98 7.22

JPMorgan Smaller Comp.share price 21.47 -30.16 2.13 10.23 8.29

NUMIS Smaller Companies Index plus AIM ex IT * 19.17 -19.78 -10.74 -3.54 2.11

Excess return (NAV) +2.37 -0.45 +12.12 +10.91 +5.00

Calendar year performance, net of fees (%)

2015 2016 2017 2018 2019

JPMorgan Smaller Comp. NAV (debt at fair value) 20.37 -0.95 31.62 -13.64 49.21 JPMorgan Smaller Comp. share price 26.03 -6.69 36.41 -9.04 67.53 NUMIS Smaller Companies Index plus AIM ex IT * 12.99 12.54 15.61 -13.80 22.14 Excess return (NAV) +6.53 -11.98 +13.85 +0.19 +22.14

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. *Benchmark changed from the FTSE Smaller Companies Index ex IT to the NUMIS Smaller Companies Index plus AIM ex IT on 1st January 2019. Past performance is not a reliable indicator for current or future results.

31 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Premium/Discount to NAV

JPM Smaller Companies Investment Trust plc

-5

-10

-15

-20

-25

-30

-35 Dec '16 Mar '17 Jun '17 Sep '17 Dec '17 Mar '18 Jun '18 Sep '18 Dec '18 Mar '19 Jun '19 Sep '19 Dec '19 Mar '20 Jun '20

Source: Bloomberg. Data from 31 December 2016 to 30 June 2020. Past performance is not a reliable indicator for current and future results.

32 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION 5 years' historic gearing level vs. benchmark

JPM Smaller Companies Investment Trust plc

Gearing Level Index 20% 6,000 Month end gearing level - LHS

Old benchmark level - RHS 16% New benchmark level - RHS

5,000 12%

8% 4,000

0% 3,000 May 15 Sep 15 Jan 16 May 16 Sep 16 Jan 17 May 17 Sep 17 Jan 18 May 18 Sep 18 Jan 19 May 19 Sep 19 Jan 20 May 20

Source: Bloomberg, J.P. Morgan Asset Management As at 30 June 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.

33 | 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 smoothing income return

Pence per share Liquid access to a less 7 No inflows/ outflows liquid asset class Special dividend 6 Dividend Earnings per share Reserves provide the ability 5 Net revenue reserves per share (RHS) Active use of gearing to to smoothing income return enhance returns for shareholders 4

3 Independent Board of Higher disclosure Directors provide oversight 2

1 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 current trust total shares, after the 5 for 1 rights issue which lapsed in 2017. Data as at 31 December 2019. Past performance is not a reliable indicator for current and future results.

34 | 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 14 Asia Research Analysts 25 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 13 Europe Research Analysts 29 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. Quantitative 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 35 | 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.

36 | 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.

37 | 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.

38 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION The UK Edge

Image source: J.P. Morgan Asset Management.

39 | 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

40 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Investment objective and risk profile JPMorgan Smaller Companies Investment Trust plc (the Company) as at September 2019

Investment objective Aims to provide capital growth from UK listed smaller companies. The Company aims to provide capital appreciation for shareholders from a diversified portfolio of UK listed small companies, emphasising capital rather than income growth. Returns are principally determined by the performance of the investments made by The Company, although The Company has the ability to use borrowing to gear the portfolio within the range of 10% net cash to 15% geared in normal market conditions. Gearing may magnify gains or losses experienced by The Company.

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 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 Company's.

. 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.

41 | 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: 0903c02a82895403

42 | FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION