JPMorgan Indian Investment Trust : Half year Report 2024

JPMorgan Indian Investment Trust plc

Half Year Report & Financial Statements for the six months ended 31st March 2024

Key Features

Your Company

Objective

Capital growth from investments in India.

Investment Policies

• To invest in a diversified portfolio of equity and equity-related securities of Indian companies.
• To invest also in companies which earn a material part of their revenues and/or undertake their economic activity from India.
• The Company will not invest in the other countries of the Indian sub-continent nor in Sri Lanka.
• A maximum investment, at the time of purchase, of 20% in any group.
• To invest no more than 15% of gross assets in other listed investment companies (including investment trusts).
• To use gearing when appropriate to increase potential returns to shareholders; the Company's gearing policy is to use short- term gearing for tactical purposes, up to a maximum level of 15% of shareholders' funds.

Benchmark

MSCI India Index expressed in sterling terms.

Risk

Investors should note that there can be significant economic and political risks inherent in investing in a single emerging economy such as India. As such, the Indian market can exhibit more volatility than developed markets and this should be taken into consideration when evaluating the suitability of a potential investment.

Capital Structure

At 31st March 2024, the Company's issued share capital comprised 99,473,851 Ordinary shares of 25p each, including 28,214,096 shares held in Treasury.

Continuation Vote & Performance-related Tender

The Company's Articles of Association require that, at the Annual General Meeting ('AGM') held in 2024 and every fifth year thereafter, the Directors must propose a resolution that the Company continues as an investment trust. At the Company's AGM held on 13th February 2024, the resolution in respect to the continuation of the Company as an Investment Trust for a further five years was put to and duly passed by shareholders. The continuation vote will next be put to shareholder vote at the Company's AGM to be held in 2029.

A performance-related conditional tender offer will be made to shareholders for up to 25% of the Company's outstanding share capital at net asset value ('NAV') less costs if, over the five years from 1st October 2020, the Company's NAV total return in sterling on a cum income basis does not exceed the total return of the benchmark in sterling terms plus 0.5% per annum over the five year period on a cumulative basis. If the tender offer was triggered, it would be subject to shareholder approval at the relevant time.

The Benchmark does not take any account of actual or potential tax on gains. Therefore, in order to ensure that the terms of the conditional tender offer correctly reflect the Investment Manager's performance rather than the impact of capital gains tax, in calculating whether the tender offer has been triggered the NAV per share will be adjusted to add back all Indian capital gains tax paid or accrued plus any surcharge and cess in respect of realised and unrealised gains made on investments. The Company publishes on a monthly basis through a Regulatory Information Service platform the Company's adjusted NAV per share.

Management Company and Company Secretary

The Company employs JPMorgan Funds Limited ('JPMF' or the 'Manager') as its Alternative Investment Fund Manager and Company Secretary. JPMF delegates the management of the Company's portfolio to JPMorgan Asset Management (UK) Limited ('JPMAM' or the 'Investment Manager'). Amit Mehta and Sandip Patodia (the 'Portfolio Managers') are the Company's designated Portfolio Managers on behalf of the Investment Manager.

Association of Investment Companies ('AIC')

The Company is a member of the Association of Investment Companies (the 'AIC').

Website

The Company's website, which can be found at www.jpmindian.co.uk, includes useful information on the Company, such as daily prices, factsheets and current and historic half year and annual reports.

Contact the Company

General enquiries about the Company should be directed to the Company Secretary at [e-mail]

FINANCIAL CALENDAR

Financial year end	30th September
Final results announced	December
Half year end	31st March
Half year results announced	June
Dividends	N/A
Annual General Meeting	January/February

2	JPMorgan Indian Investment Trust plc - Half Year Report & Financial Statements 2024

Key Features

What does JPMorgan Indian Investment Trust do?

The Company aims to provide capital growth by investing in a diversified portfolio of Indian companies and companies which earn a material part of their revenues and/or undertake a material part of their economic activity from India.

Investment Process

There is a clear hierarchy in the Portfolio Managers' decision-making process. They first look for outstanding companies with maintainable high returns on capital and strong growth prospects over the next decade. In addition, they want companies capable of benefiting from secular industry and structural trends, using this to grow market share. JPMAM's analysts use their internal research tool, the Strategic Classification framework, to assess target companies in three areas: Economics, Duration and Governance. The diagram below emphasises the interdependency of these three areas.

	ECONOMICS
	Capital intensity
Pricing power & inflation
	Asset life cycles
Economic		Ownership
moats	RoE	Regulation
	Dividends
	Balance sheet
	Capital allocation
Shareholder focus
Risk management
	Time horizon
Competitive	Financially	Political context
Innovation &	material ESG	Legal framework
obsolescence	factors

DURATION GOVERNANCE

This process leads to companies being categorised as Premium, Quality, Standard or Structurally Challenged. Given the Company's quality bias, it owns more premium and quality businesses.

Once they have identified business they want to own, the Portfolio Managers then consider the potential return from that investment. Their preference is to invest in a great company at a fair price, rather than an average company at a cheap price.

45			135			300+		59.4%
Years of combined			Investment professionals			Meetings with Indian		Active share1
industry experience			across emerging		companies in 2023/2024
between the Portfolio			markets and Asia
Managers

• Active Share is a measure of the difference between the portfolio's holdings and the benchmark index. For example, if the portfolio matches its benchmark index precisely, it will have an Active Share score of 0 and if it has no shares in common with the benchmark index, then it will have an Active Share score of 100.

J.P. Morgan Asset Management

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Key Features

Why invest in India

Capex spending, economic reforms and focus on domestic manufacturing: India is experiencing rapid growth in capital spending which will help balance the mix of GDP, currently skewed to services, with manufacturing. Economic reforms implemented by the Government, combined with buoyant demand, have improved the financial health of private companies and India is winning new business, replacing China in parts of the global supply chain, as multinational companies seek to diversify and secure supply in the wake of recent geopolitical events.

Favourable Demographics: India has recently overtaken China as the most populous country in the world. The growing working age population, and the associated rise in incomes, should continue to underpin and sustain consumption spending and housing demand for decades.

Deepening financial access: Government efforts to increase financial inclusion amongst the population and the trend towards digital empowerment have created significant potential for future growth in both financial and digital services.

Valuations: India's huge growth potential has been, and should continue to be, reflected in market returns. The Indian equity market has consistently delivered an attractive combination of a high, and relatively stable, average ROE, coupled with high long-term growth. India offers investors significant diversification benefits, as the market has low correlations with the rest of the world: 0.2 to China and 0.3 to the MSCI World. This reduces portfolio volatility in unsettled times.

Why invest in JP Morgan Indian Investment Trust plc

JPMorgan Indian Investment Trust plc ('JII') is the largest London-listed Indian equity fund focusing purely on Indian companies and provides expertly managed exposure to the long-term growth potential of the Indian market. Its portfolio includes many companies well positioned to capitalise on the mega trends that will drive the Indian economy for decades to come.

As part of the JPMAM Group with over 1,100 investment professionals worldwide, including in India, the Portfolio Managers can use the expertise that the global footprint provides, while the country specialists bring knowledge of the local markets. Team members benefit from the cross-fertilisation of investment ideas and information sharing through various meetings, informal discussions and internal research. JPMAM's proprietary research allows the Portfolio Managers to take controlled and considered positions, designed to enhance performance while seeking to control risk.

• businesses, run with the right mindset, and purchased at an attractive valuation. We think about our investments in that
  order, with a view to determining corporate quality, before considering the valuation."The focus of the investment strategy is - invest in great

Amit Mehta, Portfolio Manager,

JPMorgan Indian Investment Trust plc

Copyright 2023 JPMorgan Chase & Co. All rights reserved.

The Indian market has delivered 13% annualised returns over "both five and ten-year periods, handsomely outpacing the

Chinese and Emerging Markets indices."

Sandip Patodia, Portfolio Manager,

JPMorgan Indian Investment Trust plc

Copyright 2023 JPMorgan Chase & Co. All rights reserved.

4	JPMorgan Indian Investment Trust plc - Half Year Report & Financial Statements 2024

Contents

Half Year Performance

Financial Highlights	7

Chairman's Statement

Chairman's Statement	10

Investment Review

Investment Manager's Report	13
List of Investments	18
Sector Analysis	19

Condensed Financial statements

Condensed Statement of Comprehensive Income	21
Condensed Statement of Changes in Equity	22
Condensed Statement of Financial Position	23
Condensed Statement of Cash Flows	24
Notes to the Condensed Financial Statements	25

Interim Management Report

Interim Management Report	28

Shareholder information

Glossary of Terms and Alternative Performance Measures ('APMs') (Unaudited)	30
Investing in JPMorgan Indian Investment Trust plc	32
Share Fraud Warning	33
Information About the Company	34

Keeping in Touch

The Board and the Investment Manager are keen to increase dialogue with shareholders and other interested parties. If you wish to sign up to receive email updates from the Company, including news and views and latest performance statistics, please click the QR Code to the right or visit https://web.gim.jpmorgan.com/emea_investment_trust_subscription/welcome

J.P. Morgan Asset Management

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Half Year Performance

Half Year Performance

Financial Highlights

Total returns to 31st March 2024

	3 Years	5 Years	10 Years
6 months	Cumulative	Cumulative	Cumulative

Return to shareholders1,A

Return on net assets2,A

Benchmark return3

Net asset return performance compared to benchmark return3,4

+5.9%

+6.2%

+14.7%

-8.5%

+23.5% +25.7% +142.7%

+34.3% +38.3% +161.7%

+54.7% +78.2% +232.9%

-20.4% -39.9%-71.2%

• Source: Morningstar.

• Source: Morningstar/J.P. Morgan, using cum income net asset value per share.

• Source: MSCI. The Company's benchmark is the MSCI India Index expressed in sterling terms.

• This is the arithmetic difference between two percentages measured in percentage points ('pp')

• Alternative Performance Measure ('APM').
• glossary of terms and APMs is provided on pages 30 and 31.

J.P. Morgan Asset Management

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Half Year Performance

Financial Highlights

Summary of results

	31st March	30th September	%
	2024	2023	change
Shareholders' funds (£'000)	800,767	775,597	+3.2
Number of shares in issue (excluding shares held in Treasury)	71,259,755	73,272,730	-2.7
Net asset value per shareA	1,123.7p	1,058.5p	+6.2
Share price	904.0p	854.0p	+5.9
Share price discount to net asset value per shareA	19.6%	19.3%
Gearing/(net cash)A	0.1%	(0.6)%
Ongoing chargesA	0.81%	0.80%

• Alternative Performance Measure ('APM').
• glossary of terms and APMs is provided on pages 30 and 31.

8	JPMorgan Indian Investment Trust plc - Half Year Report & Financial Statements 2024

Chairman's Statement

Chairman's Statement

Chairman's Statement

Jeremy Whitley

Chairman

I became Chairman of the Company following the conclusion of the AGM in February 2024, having joined the Board in 2020. I took over from Rosemary Morgan who had been a Director of the Company since 2013 and Chairman since 2020. I would like to take this opportunity on behalf of the Board to thank Rosemary for her leadership and wise counsel in her time first as a Director and then as Chairman of the Company.

Performance

During the six months period ended 31st March 2024, it has been pleasing to see the MSCI India Index increasing by 14.7% and outperforming both the MSCI Emerging Markets Index and the MSCI China Index. This has come about notwithstanding the ongoing worldwide geopolitical conflicts and tensions. The Company produced a total return on net assets of 6.2% in the period although this, disappointingly, underperformed its benchmark by 8.5%. In broad terms this underperformance is attributable to lower quality sectors of the market doing well, whereas your Portfolio Managers have favoured higher quality corporate names, a number of whose share prices have disappointed. In addition, some areas of the market are now experiencing high valuations which have precluded your Portfolio Managers from participating to any meaningful extent. In their report on pages 13 to 17, the Portfolio Managers provide a detailed and frank commentary on this performance. They also discuss portfolio activity and their outlook for the Indian market.

Discount and Share Repurchases

The Company's discount to NAV at which the Company's shares trade marginally widened from 19.3% at the previous financial year end to 19.6% at the half year end.

The Board constantly weighs the merits of buying back shares, in line with the Company's share buyback policy, to manage the absolute level and volatility of the discount. The Company repurchased 2,012,975 shares into Treasury during the reporting period, equating to 2% of the Company's share capital. Since the half year end, a further 827,781 shares have been bought back for holding in Treasury.

Continuation Vote and Conditional Tender Offer

As stipulated by the Company's Articles of Association, at the AGM held on 13th February 2024, the resolution to continue the Company as an investment trust for a further five years was put to shareholders and duly passed with 96.2% of votes cast in favour.

Shareholders are reminded that a tender offer will be made to shareholders for up to 25% of the Company's outstanding share capital (excluding shares held in Treasury) at NAV less costs if, over the five years from 1st October 2020, the Company's NAV total return in sterling on a cum income basis does not exceed the total return of the benchmark index plus 0.5% per annum over the five-year period on a cumulative basis. If the tender offer is triggered, it will be subject to shareholder approval at the relevant time.

The Company is required to pay capital gains tax on long-term and short-term capital gains at the headline current rates of 10% and 15%, respectively, plus associated surcharges of approximately

1-1.5%, which the Company's benchmark does not take into account. Therefore, for the avoidance of doubt, in order to ensure that the terms of the conditional tender offer correctly reflect the Investment Manager's performance in calculating whether the tender offer has been triggered, the NAV per share will be adjusted to add back all such taxes paid or accrued. For the benefit of the Company's shareholders, the Company publishes on a monthly basis through a Regulatory Information Service platform the Company's unaudited adjusted NAV per share. The NAV performance since 1st October 2020 without the impact of capital gains tax stood at 71% as at 31st March 2024, compared to 84% for the Benchmark.

Stay Informed

The Company delivers email updates on its progress with regular news and views, as well as the latest performance. If you have not already signed up to receive these communications and you wish to do so you can opt in via https://tinyurl.com/d95jkrzxor by scanning the QR code on this page. Shareholders are also encouraged to visit the Company's website at www.jpmindian.co.ukwhich contains detailed information on the Company's performance, monthly commentaries as well as interviews and recordings with the Portfolio Managers.

10	JPMorgan Indian Investment Trust plc - Half Year Report & Financial Statements 2024