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JPMorgan US Smaller Companies Investment Trust plc

Annual General Meeting

Fiona Harris

A tight knit team with a disciplined focus on delivering alpha

Source: J.P. Morgan Asset Management. Years of experience: Industry/Firm.


As of 31 March 2019

DON SAN JOSEMANAGING DIRECTOR PORTFOLIO MANAGER

EXPERIENCE: 22/19

DAN PERCELLA,MANAGING DIRECTOR

EXPERIENCE: 17/11

JONATHAN BRACHLE,EXECUTIVE DIRECTOR

EXPERIENCE: 12/12

CO-PM/RESEARCH ANALYST CO-PM/RESEARCH ANALYST

Also leverages the insights of the J.P. Morgan Equity organization, which

includes over 40 research analysts in the U.S. and over 200 globally

CHRIS CARTER,VICE PRESIDENT

EXPERIENCE:13/4

RESEARCH ANALYST

Investment Philosophy

Don San JosePortfolio Manager “We believe that the analytical focus that we place on uncovering high quality

companies which are trading at attractive valuations is a differentiating characteristic

of our approach and one that serves to add value for our clients over the long term.”

Quality Business Quality Management Valuation

We focus on quality first:

durable business model

consistent earnings

clear competitive advantages

high return on invested capital

sustainable free cashflow

Management is key:

good stewards of capital

committed to increasing shareholder value

track record of success

Valuation is critical:

Price/earnings

Price/book value

Private market analysis

Free cashflow yield

Enterprise value analysis

JPMorgan US Smaller Companies Investment Trust plc: 2018 Performance

Past performance is not an indication of current and future results.The current portfolio management team assumed responsibility of the portfolio November 2008. 1Change in share price with net dividends, if any, reinvested (Source: Morningstar).2Change in net asset value per share with net dividends, if any, reinvested (Source: J.P. Morgan Asset Management).3Change in the Index with net income reinvested, in sterling terms. Comparison of the Company’s performance is made against this index. The benchmark is a recognized index of stocks which should

not be taken as wholly representative of the Company’s investment universe. The Company’s investment strategy does not follow or “track” this index and therefore there may be a degree of diversity in

performance from the main index stated. (Source: Russell Investments)4Arithmetic difference between the net asset value and the index

FY 2018

JPM US Smaller Companies IT share price1 -11.6%

JPM US Smaller Companies IT net asset value2 -5.8%

Russell 2000 Index Net (£)3 -5.7%

NAV Excess return4 -0.1%

As of 31 December 2018

Benchmark Russell 2000 Index

Absolute sector returns in GBP

Sector performance: 2018

Source: Wilshire. The above data excludes cash and gearing. Past performance is not an indication of current and future results.


As of 31 December 2018

20%

10%

2%

-2%

-7% -7%-9%

-15%

-35%

5%8%

-1%-3%

-9%

-23%

-5% -5%

-33%

Technology Utilities Health Care ConsumerDiscretionary

ProducerDurables

Materials &Processing

FinancialServices

ConsumerStaples

Energy

Portfolio Benchmark

One year performance attribution

Source: Wilshire, Factset, in GBP. 1The attribution summary approximates the gross excess returns of the portfolio and is calculated based on daily holdings which does not represent actual trading,

liquidity constraints, fee schedules and transaction costs. It is shown for illustrative purposes only and is not meant to be representative of actual results. *Indicates stock not held in the portfolio as of 31

December 2018. The portfolio is an actively managed portfolio, 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.


For the 1 year period ending 31 December 2018

Stock attribution

Sector Attribution (%)

Attribution summary1 Stock: +2.98%

Sector: -1.12%


Top ContributorsAvg. Relative

weight (%)

Stock

return (%)

Impact

(%)

POOL 2.73 23.18 0.68

Grubhub 0.86 100.27 0.58

Tableau Software 0.93 84.19 0.57

Q2 Holdings 1.20 42.82 0.53

Healthsouth 1.55 34.76 0.52

Top DetractorsAvg. Relative

weight (%)

Stock

return (%)

Impact

(%)

Patterson UTI Energy 1.61 -51.81 -0.96

Patrick Industries 1.30 -54.72 -0.84

Spectrum Brands Holdings* 0.61 -24.87 -0.48

LCI Industries 0.99 -43.93 -0.48

Evoqua Water Technologies* 0.47 -57.80 -0.45

1.2 1.10.4 0.1 0.1 0.0

0.0 -0.4 -0.8-2.0

0.0

2.0

4.0

Technology Materials &Processing

ProducerDurables

Energy ConsumerDiscretionary

Health Care Utilities ConsumerStaples

FinancialServices

Performance

1 Net asset value assumes that shares held in treasury (if any) have been re issued at the previous nights closing price.2 Comparison of the Company's performance is made with the benchmark. The benchmark is a recognised index of stocks which should not be taken as wholly representative of the Company's

investment universe. The Company's investment strategy does not follow or track this index and therefore there may be a degree of divergence between its performance and that of the Company3 Arithmetic difference between the net asset value and the index

Source: J.P. Morgan Asset Management. Performance data has been calculated on NAV to NAV basis, including ongoing charges and any applicable fees, with any income reinvested, in GBP. Please

note Benchmark Indices do not include fees or operating expenses and are not available for actual investment.



As of 31 March 2019

Annualised performance (%)

Three

Months

One

Year

Two

Years

Three

Years

Five

Years

Ten

Years

JPM US Smaller Companies IT (Net Asset Value1) (%) 12.05 9.04 4.87 16.61 14.16 19.03

Russell 2000 Index Net2 (£) (%) 11.93 9.64 4.42 16.44 12.21 16.17

Excess return3 +0.12 -0.60 +0.45 +0.17 +1.95 +2.86

Calendar year performance (%)

2018 2017 2016 2015 2014 2013 2012 2011 2010 2009

JPM US Smaller Companies IT (Net Asset Value)1 -5.76 6.32 50.14 3.95 12.74 38.65 12.51 1.33 33.00 29.45

Russell 2000 Index Net (£)2 -5.67 4.52 44.37 0.92 11.12 35.91 10.87 -3.76 30.49 12.86

Excess return3 -0.09 +1.81 +5.77 +3.03 +1.62 +2.74 +1.64 +5.09 +2.51 +16.59


Active and absolute sector positions

Sector positions

Source: Factset (excludes cash). This is an actively managed portfolio, holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment

Manager without notice.


As of 31 March 2019

5.35.0

0.70.2 0.0

-1.0 -1.0

-2.9

-6.3-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

ProducerDurables


ConsumerStaples

ConsumerDiscretionary

FinancialServices

Utilities Energy Technology Health Care

Portfolio

weight (%) 18.6 11.1 3.0 15.4 24.9 3.7 2.6 11.0 9.5

Relative to benchmark (%)

Portfolio Portfolio Index

Wgtd Avg Market Cap (USD mm) 3,882 2,384

Price / Earnings, 12-mth fwd1 17.2x 18.9x

Dividend Yield 1.5% 1.4%

EPS Growth, 5 yr average 13.2% 7.8%

EPS Growth, 12-mth forward 8.1% 8.8%

Predicted Beta 0.88 -

Predicted Tracking Error 4.36 -

Return on Equity, trailing 12-mth 12.6% 8.3%

Turnover2 27.3% -

Number of holdings 86 1992

Gearing 3.6%

Portfolio characteristics

Source: J.P. Morgan Asset Management, FactSet.1Including negative earners. 2Average 12-month turnover as of 31 March 2019. The portfolio is an actively managed portfolio, holdings, sector

weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. Positioning data is based on a representative portfolio.


As of 31 March 2019

Market capitalisation


62.8

25.8

11.4

0.0

28.8

39.5

24.4

7.2

0%

20%

40%

60%

80%

100%

> USD3BN USD1.5- 3BN

USD500M- 1.5BN

<USD500M

Portfolio

Russell 2000 Index

Executive summary



As of 31 March 2019

ExpertiseA tight knit portfolio management team with a focus on US small caps

Lead Portfolio Manager, Don San Jose, has 22 years of experience and has managed the Investment Trust since 2008

Leverages the insights of a dedicated team of 3 research analysts

PortfolioFundamental approach, focusing on high quality companies with attractive valuations

Emphasis on durable business models, consistent earnings, high return on invested capital and sustainable free cash flow

Diversified portfolio with disciplined approach to valuation in order to enhance long-term returns

ResultsPortfolio has delivered strong risk-adjusted performance

Consistent and disciplined in the execution of our strategy thus ensuring no style drift

Our approach has historically shown less volatility than the market and less exposure to downside risk

Market Outlook

The length of expansions

GTM – U.S. | Page 18

Economic growth and the composition of GDP


Consumer finances


Unemployment and wages


The US economy is in the late cycle, but the risk of a recession still looks moderate

Source: Bloomberg, US National Bureau of Economic Research, Federal Reserve Economic Data, Conference Board, Ned Davis Research, MKM Partners, Deutsche Bank. Data as of 31 March 2019.

The opinions and views expressed here are those held by the author at the date of publication which are subject to change and are not to be taken as or construed as investment advice.

Corporate Profit Peak

Change in Employment

Leading Economic Indicator

Yield Curve Inversion

High-Yield Spread

Yield curve and equities


Market volatility and pullbacks are normal

Source (Top): Standard & Poor’s, FactSet, J.P. Morgan Asset Management. Returns are based on price index only and do not include dividends. Analysis based on each type (size) of drawdown being independent. For example, the

market does not typically see four 5% drawdowns and one 10% drawdowns in the same year, but rather those 5% drawdowns may compound into a single 10% drawdown for the year. Analysis based on each type (size) of

drawdown being independent. Data as of 31 December 2017. Source (Bottom): Guide to Retirement, J.P. Morgan Asset Management analysis using data from Bloomberg. *Refers to the total missed days during the entire period.

For illustrative purposes only.


$40,135

$20,030

$12,569 $8,331 $5,669 $3,965 $2,834

Fully Invested Missed 10best days

Missed 20best days

Missed 30best days

Missed 40best days

Missed 50best days

Missed 60best days

7.20% return

3.53% return

1.15% return-0.91% return

-2.80% return -4.52% return -6.11% return

Number of 5% drawdowns experienced each year

Impact of being out of the market*

Returns of the S&P 500

Performance of a $10,000 investment between January 1, 1998 and December 29, 2017

0

5

10

15

20

25

30

35

1928 1938 1948 1958 1968 1978 1988 1998 2008

Six of the best 10 days

occurred within two weeks

of the 10 worst days

Bear markets and subsequent bull runs

GTM – U.K. | Page 54

Executive summary: US market outlook

Source: J.P. Morgan Asset Management. 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.

Economy

Consumers

Earnings

Valuations

Expect slow but steady economic growth

US consumer remains in good shape

US earnings continue to grow

Market valuation looks reasonable

As of 31 March 2019

Appendix

QTD performance attribution

Source: Factset, Wilshire, in GBP. 1The attribution summary approximates the gross excess returns of the portfolio and is calculated based on daily holdings which does not represent actual trading,

liquidity constraints, fee schedules and transaction costs. It is shown for illustrative purposes only and is not meant to be representative of actual results. The portfolio is an actively managed portfolio,

holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice.



For the QTD period ending 31 March 2019

Stock attribution

Sector Attribution (%)

Attribution summary1 Stock: +0.00%

Sector: -0.40%


Top ContributorsAvg. Relative

weight (%)

Stock

return (%)

Impact

(%)

Patrick Industries 1.19 49.60 0.33

Patterson-UTI 1.33 32.81 0.24

Q2 Holdings 1.07 36.62 0.22

Catalent 1.57 27.24 0.21

HFF 0.70 46.67 0.20

Top DetractorsAvg. Relative

weight (%)

Stock

return (%)

Impact

(%)

Encompass Health 1.44 -7.06 -0.27

RBC Bearings 1.41 -5.19 -0.25

US Ecology 0.91 -12.88 -0.24

Valvoline 1.19 -5.72 -0.21

Prestige Consumer Healthcare 0.85 -5.33 -0.18

0.8

0.3 0.3 0.2 0.1

-0.1 -0.2-0.5

-1.3-1.8

-0.8

0.2

1.2

FinancialServices

ConsumerStaples

Utilities ConsumerDiscretionary

ProducerDurables


Energy Technology Health Care

Top 5 overweights¹Portfolio

weight (%)

Relative position

(%)

Toro 2.8 2.8

POOL 2.8 2.8

AptarGroup 2.7 2.7

Performance Food Group 2.4 2.2

Douglas Dynamics 2.1 2.1

Top 10 HoldingsPortfolio

weight (%)

Toro 2.8

POOL 2.8

AptarGroup 2.7

Performance Food Group 2.4

Douglas Dynamics 2.1

Portland General Electric 2.0

National Retail Properties 1.9

Quaker Chemical 1.9

EastGroup Properties 1.8

West Pharmaceutical 1.7

Portfolio positions

Source: J.P. Morgan Asset Management, Wilshire (excludes cash). ¹Compared to Russell 2000 Index. *Indicates stock not held in the portfolio as of 31 March 2019. This is an actively managed

portfolio, holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice.


As of 31 March 2019

Top 5 underweights¹Portfolio

weight (%)

Relative position

(%)

Etsy* 0.0 -0.4

Five Below* 0.0 -0.3

The Trade Desk* 0.0 -0.3

HubSpot* 0.0 -0.3

Planet Fitness* 0.0 -0.3


JPMorgan US Smaller Companies IT: Performance attribution in GBP

Source: J.P. Morgan Asset Management, Wilshire. Attribution is annualized, gross of fees and also excludes cash. The Trust is an actively managed portfolio, holdings, sector weights, allocations and

leverage, as applicable are subject to change at the discretion of the Investment Manager without notice.


Annualized performance attribution from 31 March 2009 through 31 March 2019

Stock Selection Sector Selection Total

Financial Services 1.23 -0.02 1.20

Consumer Discretionary 0.82 -0.06 0.76

Producer Durables 0.67 -0.01 0.65

Materials & Processing 0.46 -0.08 0.38

Technology 0.48 -0.13 0.36

Energy 0.16 0.11 0.27

Health Care 0.22 -0.12 0.11

Consumer Staples 0.09 -0.06 0.03

Utilities -0.12 0.02 -0.10

Total 4.00 -0.36 3.65

Investment objective and risk profile


Please refer to the Trust’s documents for more information relating to the Trust.

Risk Profile

The value of investments and the income from them can go down and up, and you may not get back as much as you paid in. Past performance is not a guide

to the future.

Exchange rate changes may cause the value of underlying overseas investments to go down as well as up.

Investments in smaller companies may involve a higher degree of risk as these are usually more sensitive to price movements.

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.

This trust may utlilise gearing (borrowing) which will exaggerate market movements both up and down.

Investment Objective

The Company aims to provide investors with capital growth by investing in US smaller companies that have a sustainable competitive advantage and to focus

on owning equity stakes in businesses that trade at a discount to their intrinsic value, with strong management teams. The company has the ability to use

borrowing to gear the portfolio to up to 15% of net assets where appropriate.

Biographies

Jon Brachle

Jon Brachle, Executive Director, is an analyst with the U.S. Small Cap Core Equity Group. An employee since 2007, Jon was previously a research assistant covering software and

IT services companies for the U.S. Large Cap Equity Group. Jon holds a B.S. in finance from the University of Colorado’s Leeds School of Business and is a CFA charterholder.

Don San Jose

Don San Jose, Managing Director, is an analyst and portfolio manager of the JPMorgan Small Cap Active Core Strategy which includes the JPM US Smaller Companies Fund. An

employee since 2000, Don was an analyst in JPMorgan Securities' equity research department covering capital goods companies before joining the small cap group. Prior to joining

the firm, he was an equity research associate at ING Baring Furman Selz. Don holds a B.S. in finance from The Wharton School of the University of Pennsylvania and is a member of

both the New York Society of Security Analysts and The CFA Institute. He is a CFA charterholder

Chris Carter

Chris Carter, Vice President, is an analyst on the Small Cap Active Core Team. He joined the team in 2015 from Credit Suisse where he spent 5 years covering the Healthcare

Managed Care and Facilities sectors, including primary coverage of three SMID Cap stocks. He also previously worked on the sell side at Citigroup and as a buy side equity analyst

for Columbus Investment Advisory, a boutique asset management firm in Columbus, Ohio. Chris holds a B.B.A. in finance from Ohio University.

Dan Percella

Dan Percella, Managing Director, is an analyst on the U.S. Small Cap Core Equity Team. An employee since 2008, Dan was previously a member of Institutional Investor-ranked

equity research teams covering the transportation sector at Bear Stearns, Bank of America and Citigroup. Prior to equity research, Dan worked as an analyst at NERA, an economic

consulting firm. Dan holds a B.S. in economics from Georgetown University’s Walsh School of Foreign Service and is a member of both the New York Society of Security Analysts and

The CFA Institute. He is also a CFA charterholder.

Biographies

Fiona Harris

Fiona Harris, Executive Director, is a US Equity Specialist in J.P. Morgan Asset Management’s US Equity Group. An employee since 1997, she is responsible for communicating

investment strategy, portfolio information and results to non-US domiciled clients. Previously, Fiona was a client portfolio manager in the firm’s New York office, where she provided

support on the mid cap value strategy. She joined the firm as a marketing associate focusing on servicing the needs of clients in the U.K. and continental Europe. She had previously

worked in the personal financial planning department of KPMG as a national marketing and communications associate. Fiona holds a B.S. in Marketing from GMIT in Ireland. She

holds the Series 7 license.

Christian Preussner

Christian Preussner, Managing Director, is a member of the US Equity Group and co-head of the US Equity Investment Specialist team. An employee since 2004, Christian covers

non-US domestic institutional and funds clients as a product specialist for US Equities. In that capacity, he is responsible for communicating investment performance, outlook and

strategy positioning on behalf of the US Equity portfolio management team. Previously, he worked as a Senior Investment Specialist within J.P. Morgan Asset Management’s

Equity/Balanced Portfolio Management Group in Frankfurt (Germany) covering both Emerging Markets Equities and US Equities. Christian holds a diploma in Business Administration

(MBA equivalent) from the European Business School Oestrich-Winkel (Germany) and is a CFA charterholder.

J.P. Morgan Asset Management

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. Front page image source: Shutterstock.

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