JPMorgan Multi-Asset Trust plc · Capital Structure At 31st August 2018, the Company’s share capital comprised 93,115,643 ordinary shares of 1p each including 5,754,235 held in

JPMorgan Multi-Asset Trust plcInterim Report & Financial Statements for the period ended 31st August 2018

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K E Y F E A T U R E S

Your Company

Investment ObjectiveThe Company’s objective is income generation and capital growth, while seeking to maintain lower levels of portfolio volatility thana traditional equity portfolio.

Investment PoliciesThe Company will seek to achieve its investment objective through a multi-asset strategy, maintaining a high degree of flexibility withrespect to asset class, geography and sector of the investments selected for the portfolio.

The Company has no set maximum or minimum exposures to any asset class, geography and sector of investments and will seek toachieve an appropriate spread of risk by investing in a diversified global portfolio of securities and other assets. This includes thefollowing asset classes:

• equities, and equity linked securities including developed market equities and emerging market equities;

• fixed interest securities including government securities, corporate bonds, high yield bonds, emerging market debt, convertiblesecurities and asset backed securities;

• alternative assets including infrastructure, property and other illiquid investments; and

• derivatives including over the counter and on exchange traded options, financial futures, forward contracts and contracts fordifference.

Investment RestrictionsThe Company has the following investment restrictions at the time of investment, calculated on the Company’s Total Assets:

• no individual investment may exceed 15 per cent. with the exception of developed countries government bonds and funds;

• no single developed country government bond or fund will exceed 30 per cent.;

• for investment in funds, on a look-through basis, no individual investment may exceed 15 per cent.; and

• listed equities and fixed income securities will represent not less than 50 per cent.

Reference IndexLIBOR one-month Sterling +4.5%

Capital StructureAt 31st August 2018, the Company’s share capital comprised 93,115,643 ordinary shares of 1p each including 5,754,235 held in Treasury.

Continuation VoteIn accordance with the Articles, the Directors are required to propose an ordinary resolution that the Company continues its businessas a closed-ended investment company at the fifth annual general meeting of the Company expected to be held in 2023. If theContinuation Vote is passed by a simple majority, the Directors are required to put a further Continuation Vote to Shareholders at theannual general meeting of the Company every fifth year thereafter.

Management Company and Company SecretaryThe Company employs JPMorgan Funds Limited (‘JPMF’ or the ‘Manager’) as its Alternative Investment Fund Manager and CompanySecretary. JPMF delegates the management of the Company’s portfolio to JPMorgan Asset Management (UK) Limited (‘JPMAM’).

FCA regulation of ‘non-mainstream pooled investments’The Company currently conducts its affairs so that its shares can be recommended by Independent Financial Advisers to ordinary retailinvestors in accordance with the rules of the Financial Conduct Authority (‘FCA’) in relation to non-mainstream investment products andintends to continue to do so for the foreseeable future.

The shares are excluded from the FCA’s restrictions which apply to non-mainstream investment products because they are shares in aninvestment trust company.

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

WebsiteThe Company’s website, which can be found at www.jpmmultiassettrust.co.uk, includes useful information on the Company, such asdaily share prices, factsheets and will show current and historic half year and annual reports once available.

J P M O R G A N M U LT I - A S S E T T R U S T P L C . I N T E R I M P E R I O D R E P O R T & F I N A N C I A L S TAT E M E N T S 2 0 1 8


C O N T E N T S

C O N T E N T S

Interim Period Performance 3 Financial Highlights

Chairman’s Statement 5 Chairman’s Statement

Investment Review 8 Investment Managers’ Report

10 Ten Largest Investments

10 Sector Analysis

11 Geographical Analysis 12 List of Investments

Financial Statements 14 Statement of Comprehensive Income

15 Statement of Changes in Equity

16 Statement of Financial Position

17 Statement of Cash Flows

18 Notes to the Financial Statements

Interim Management 22 Report

Shareholder Information 24 Glossary of Terms and Alternative

Performance Measures (‘APMs’)

26 Where to buy JPMorgan Multi-Asset Trust plc

29 Information about the Company

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Interim Period Performance

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I N T E R I M P E R I O D P


F I N A N C I A L H I G H L I G H T S

I N T E R I M P E R I O D P E R F O R M A N C E | 3

TOTAL RETURNS (INCLUDING DISTRIBUTIONS REINVESTED) PERIOD FROM 2ND MARCH 2018 TO 31ST AUGUST 20181

Period to 31st August 2018

Return on share price2

Return on net assets3

Reference index LIBOR one month sterling +4.5% p.a.4

–0.3%

+3.4%

+2.6%

1 The Company’s first day of trading was on 2nd March 2018.2 Source: Morningstar. Share price total return.3 Source: Morningstar/J.P.Morgan using cum income net asset value per share.4 Source: Morningstar.

A glossary of terms and alternative performance measures is provided on pages 24 and 25.

SUMMARY OF RESULTS

31st August 2nd March 2018 2018 % change

Net asset value per share 101.7p 99.3p +2.41

Share price 98.5p 99.8p –1.32

Share price (discount)/premium to net asset value per share (3.1%) 0.5%

Net assets (£’000) 88,822 92,504 –4.0

Number of shares in issue (excluding shares held in Treasury) 87,361,408 93,115,643 –6.2

Net cash 3.6%

Ongoing charges 0.91%

1 % change, excluding distributions paid. Including distributions the return would be +3.4%.2 % change, excluding distributions paid. Including distributions the return would be –0.3%.

A glossary of terms and alternative performance measures is provided on pages 24 and 25.


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Chairman’s Statement


C H A I R M A N ’ S S T A T E M E N T

C H A I R M A N ’ S S T A T E M E N T | 5

Introduction

I am pleased to present this first report to shareholders since the Company was launched on 2nd March2018. The Company raised £93.1 million at launch and we are very appreciative of the support frominvestors, particularly the many former shareholders of JPMorgan Income & Capital Trust plc who chose to‘roll-over’ their investment into the Company.

The Company’s objective is to generate income and capital growth through a multi-asset strategy. Ourcommitment to this objective is illustrated by the Company’s distribution policy, which aims to achievea yield of 4.0% on the Initial Issue Price. In addition, the Company has used the advantages of investmenttrust status to access less liquid areas of the market, such as by investing approximately 11% of its portfolioin infrastructure funds, with the aim of generating sustainable and growing income.

Portfolio Performance

For the period to 31st August 2018, the Company recorded a positive total return of 3.4% on its net assetvalue, an outperformance of 0.8% to the Company’s Reference Index. The Company’s Reference Index iscomprised of the LIBOR one-month Sterling rate plus 4.5%, which is used instead of a benchmark, as it isthought more closely to reflect the profile of the Company’s portfolio.

During the period under review, markets have experienced some volatility due in part to trade tensionsbetween the United States and China, deterioration of relations between the West and Russia and concernsover the rise of populism in Europe. However, overall economic data is positive with continuing globalgrowth supported by generally accommodative government policies and muted levels of inflation which, sofar, have only resulted in small incremental rises in interest rates. Further details of the portfolio areprovided in the investment managers’ report on page 8.

Share Price Performance

For the period to 31st August 2018, the Company recorded a slight negative total return of 0.3% on itsshare price.

The price of the Company’s shares has traded at a discount to net asset value throughout most of theperiod. On 31st August 2018, the discount on the Company’s shares was 3.1%. The average discount duringthe period was 4.8% with the shares trading between a premium of 0.4% and a discount of 8.5%

As referred to in the Company’s Prospectus dated 24th January 2018, the Directors have been givenauthority to buyback 14.99% of the Company’s Ordinary Shares. The Board has agreed a buyback and shareissuance policy, with the purpose of preventing the discount on the Company’s shares wideningsignificantly in normal market conditions. During the period the Company bought back 5,754,235 sharesfollowing its successful application for a court order to approve the cancellation of its share premiumaccount and filing of audited Initial Accounts.

The Directors have also been given authority to allot new ordinary shares for cash on a non pre-emptivebasis. No new shares have been allotted during the period to 31st August 2018.

Revenue and Distributions

During the period the Company’s net return on ordinary activities after taxation was £2,816,000.

Since the launch of the Company, the Board has declared two interim distributions each of 1.0 pence pershare in respect of the financial period to 28th February 2019. The Board anticipates that in the absence ofunexpected circumstances, the Company will have paid a total distribution of 4.0 pence per share inrespect of the financial period to 28th February 2019, equating to a distribution yield of 4.0% on the InitialIssue Price. These figures are as forecast in the Company’s Prospectus dated 24th January 2018.

The Company has elected to ‘stream’ part of the distribution and thereby pay both an ordinary dividendand a distribution designated as a payment of interest for tax purposes. Further details of the tax

Sir Laurence Magnus Chairman


C H A I R M A N ’ S S T A T E M E N T

6 | J P M O R G A N M U L T I - A S S E T T R U S T P L C . I N T E R I M P E R I O D R E P O R T & F I N A N C I A L S T A T E M E N T S 2 0 1 8

implications for shareholders of the interest ‘streaming’ regime can be found in Part 7 ‘Taxation’ of theCompany’s Prospectus dated 24th January 2018 and in the announcement of the Company’s first interimdistribution dated 21st June 2018.

Change of Broker

In mid-August, the Board appointed Panmure Gordon as its sole corporate broker.

Outlook

Subject to the absence of a serious escalation of trade tensions between the U.S. and China or any othersignificant event which might threaten global growth, it appears reasonable to expect that the currentpositive economic environment will continue throughout the remainder of the Company’s financial yearending 28th February 2019. The Board believes that the JPMorgan Investment Management team are wellplaced to manage the portfolio and to achieve the objectives which the Company set at launch.

Sir Laurence MagnusChairman 17th October 2018


Investment Review

Investment approach

We aim to construct a portfolio which is designed to be flexible with respect to asset class, geography andsector of investments and will seek to achieve an appropriate spread of risk by investing in a diversifiedglobal portfolio of securities and other assets. This flexibility allows us to take advantage of the bestopportunities to generate income and growth. We take a medium to long term view of markets, acting oninvestment themes that we believe are appropriate for such a period.

Market review

Performance among major asset markets over the review period has improved after a slow start. Inaggregate 2018 has proved to be a tougher environment for investors than 2017. Global politics haveremained at the forefront of investors’ minds and have continued to make headlines. At the beginning ofthe year the prospect of a trade war between U.S. and China dominated, alongside an escalation of tensionsbetween the West and Russia over the situation in Syria and the ongoing tension between the U.S. andNorth Korea. More recently, Italy’s new populist government added to market concerns and causeda record plunge in Italian government bonds in May. In June, continued strength of the U.S. economy gavethe Federal Reserve the confidence to raise interest rates again. By contrast, after poor data releases anda continued lack of inflation, the European Central Bank announced that interest rates would not be goingup until next year. Despite the troubling trade headlines continuing into July, the tensions had little impacton corporate earnings with both sales and earnings exceeding analysts’ estimates. Good economic newsalso propelled the 10-year U.S. Treasury yield to 3%. U.S. Dollar strength, signs of stress in the Turkisheconomy and volatility in the Italian government bond market weighed on returns globally towards the endof the review period, particularly across emerging markets. The stand-out exception was the U.S. equitymarket where the strong economic data, and a general absence of any inflation concerns, once againpushed the index higher. While performance across developed equity markets was positive over the period,emerging markets declined in local currency terms driven by ongoing risks from escalating trade disputesand a strong U.S. dollar. Performance across fixed income markets was mixed with emerging market debtposting negative returns and global high yield bonds making gains.

Portfolio review

We remain moderately positive on equities (supported by our view that global growth will remain abovetrend over the next several quarters) and have increased our overweight to equities compared to fixedincome, relative to our strategic asset allocation, since the start of the review period.

Within equities, from an asset allocation perspective, we moved underweight emerging markets towardsthe end of the review period. The potential ongoing risks from escalating trade disputes, a strong dollar andtightening of financial conditions for emerging market economies causes us concern in the short-term. Inorder to see a bounce in emerging market assets, this would require a stabilization of the U.S. dollar,resurgence in global growth/industrial cycle, or upside surprises from favourable developments in trade oreasing of financial conditions by Chinese authorities. Additionally, we have increased our overweight toU.S. equities given solid economic growth and a strong earnings backdrop, while the defensive nature ofthis market should provide an ongoing tailwind in both upside and downside scenarios relative to otherregions. We are underweight Europe ex UK as it remains the least preferred equity region and serves asa source of funds to gain exposure to more favoured markets.

Within fixed income, relative to the funds strategic asset allocation, we continue to hold an overweight tohigh yield bonds and emerging market debt while we remain underweight government bonds. Over theperiod we have sold our allocation to corporate bonds and remain underweight versus our strategic assetallocation. We have increased our exposure to infrastructure significantly, adding the JPM managedInfrastructure Investments Fund in July while also continuing to hold a small position in 3i InfrastructurePlc. Therefore our aggregate infrastructure position is now overweight versus our strategic asset allocation.The addition of this strategy is beneficial for further diversification and expected contribution to the dualobjectives of capital growth and income.

Katy Thorneycroft Investment Manager

Gareth WitcombInvestment Manager

I N V E S T M E N T M A N A G E R S ’ R E P O R T


I N V E S T M E N T R E V I E W | 9

I N V E S T M E N T M A N A G E R S ’ R E P O R T

8 |

Our equity portfolio remains overweight financials and real estate at the sector level, and within financialswe continue to favour the more sustainable dividends in insurance. We also remain overweight energy,however, we have significantly reduced the size of the U.S. positions after strong performance earlier in theyear. Positions in technology and consumer staples were increased with Microsoft, for example, bought asa result of improving margins and compelling growth in their cutting edge cloud computing technology.Despite the additions of stock in companies such as PepsiCo, consumer staples remains one of the largestunderweights, along with retail. Overall on a regional basis, we have reduced exposure to the UnitedKingdom and added to the U.S. and Switzerland, where manufacturing and consumer sentiment remainsstronger placed to deliver above trend growth.

Performance review

JPMorgan Multi-Asset Trust plc Since inception to 31st of August 2018

Share Price Total Return (0.3%)NAV Total Return1 3.4%

1 NAV returns are calculated on cum income debt at par

The portfolio’s equity exposure, which is run by specialist equity investors in JPMorgan Asset Management’sInternational Equity Group, was the largest positive contributor to absolute performance. While ouroverweight to physical equities was beneficial, our regional positioning through index futures provideda negative contribution to returns. Within fixed income, high yield was the largest positive contributor toabsolute performance. The high yield market continued to perform strongly as better-than-expectedearnings in August highlighted the solid fundamentals of U.S. companies. By contrast, emerging marketdebt was the greatest detractor as many emerging market countries have suffered from the ongoing tradewar and the strength of the U.S. Dollar. Our increased allocation to Infrastructure provided a positivecontribution.

Outlook

Global growth is set to remain above trend, but changes to U.S. trade policy and the impact of higherU.S. interest rates have increased the risks to our outlook. We retain a positive outlook overall, anticipatingan economic and earnings environment consistent with equity outperformance of fixed income, but if ourconviction in this positioning declines, we will look to trim equity positioning a little.

We expect U.S. interest rates to continue steadily tightening over coming quarters, but even then monetarypolicy will remain accommodative and supportive for risk assets into early 2019. Within asset classes, wehave a preference for U.S. stocks over most other regions. We are more cautious on emerging markets aswe see further headwinds from trade tensions.

Katy Thorneycroft Gareth WitcombInvestment Managers 17th October 2018

T E N L A R G E S T I N V E S T M E N T S a n d S E C T O R A N A L Y S I S


TEN LARGEST INVESTMENTS 31st August 2018 ValuationCompany Country £’000 %1

JPM Global High Yield Bond Luxembourg 10,185 11.9

Infrastructure Investments Fund (IIF UK 1 LP)2 United Kingdom 9,540 11.1

JPM Emerging Markets Debt Luxembourg 4,015 4.7

JPM Emerging Markets Local Currency Debt Luxembourg 2,996 3.5

Pfizer United States 2,543 3.0

Verizon Communications United States 2,309 2.7

Coca-Cola United States 2,259 2.6

Novartis Switzerland 1,668 2.0

Merck United States 1,641 1.9

Roche Switzerland 1,631 1.9

Total 38,787 45.3

1 Based on total investments of £85.7m.2 The General Partner of IIF UK 1 LP is an affiliate of JPMorgan Asset Management (UK) Limited.

SECTOR ANALYSIS

31st August 2018 Portfolio %1

Health Care 12.0

Financials 11.9

JPM Global High Yield Bond 11.9

Infrastructure Investment2 11.1

Consumer Staples 10.1

Energy 7.0

Utilities 6.0

Telecommunication Services 5.9

JPM Emerging Markets Debt 4.7

Industrials 4.5

Information Technology 3.5

JPM Emerging Markets Local Currency Debt 3.5

Materials 3.1

Consumer Discretionary 2.8

Real Estate 2.0

Total 100.0

1 Based on total investments of £85.7m.2 The General Partner of IIF UK 1 LP is an affiliate of JPMorgan Asset Management (UK) Limited.

I N V E S T M E N T R E V I E W | 1 1

1

G E O G R A P H I C A L A N A L Y S I S

31st August 2018 Portfolio %1

United States 29.8

Luxembourg2 20.1

United Kingdom 19.4

France 6.3

Switzerland 6.0

Netherlands 3.4

Spain 2.5

Australia 2.2

Germany 2.1

Japan 2.0

Sweden 1.6

Canada 1.4

Singapore 1.3

Italy 1.2

Denmark 0.4

Norway 0.3

Hong Kong —

Finland —

Belgium —

Portugal —

New Zealand —

Total 100.0

1 Based on total investments of £85.7m.2 JPM Global High Yield Bond, JPM Emerging Markets Debt and JPM Emerging Markets Local Currency Debt are domiciled in Luxembourg.


L I S T O F I N V E S T M E N T S

ValuationCompany £’000



UNITED STATESPfizer 2,543

Verizon Communications 2,309

Coca-Cola 2,259

Merck 1,641

PepsiCo 1,567

NextEra Energy 1,542

Philip Morris International 1,305

International Business Machines 1,214

AT&T 1,092

Texas Instruments 1,065

Union Pacific 1,018

Chevron 1,012

Xcel Energy 997

Eaton 965

Occidental Petroleum 677

DowDuPont 644

Johnson & Johnson 583

Principal Financial 565

Citigroup 445

Broadcom 410

Microsoft 326

Avalon Bay Communities 296

Ventas 291

Vornado Realty 291

Prologis 289

Comcast 156

25,502

UNITED KINGDOM3I Infrastructure 1,558

British American Tobacco 972

Royal Dutch Shell 632

Aviva 630

GlaxoSmithKline 619

Ferguson 617

Imperial Brands 545

Taylor Wimpey 441

Glencore 414

AstraZeneca 344

Persimmon 341

7,113

FRANCETOTAL 1,484

Sanofi 957

Orange 789

FRANCE CONTINUEDVINCI 774

Cie Generale des

Etablissements Michelin 643

Schneider Electric 442

LVMH Moet Hennessy Louis Vuitton 310

5,399

SWITZERLANDNovartis 1,668

Roche 1,631

Zurich Insurance 1,148

Swiss Re 730

5,177

NETHERLANDSUnilever 1,190

ING 926

Royal Ahold Delhaize 793

2,909

SPAINIberdrola 1,575

Enagas 598

2,173

AUSTRALIARio Tinto 1,358

Stockland 521

1,879

GERMANYAllianz 912

Deutsche Telekom 882

1,794

JAPANTokio Marine 730

Bridgestone 534

JXTG 439

1,703

SWEDENNordea Bank 740

Svenska Handelsbanken 644

1,384

CANADATransCanada 1,160

1,160

SINGAPOREDBS 1,118

1,118

ITALYEnel 1,040

1,040

DENMARKNovo Nordisk 299

299

NORWAYNorsk Hydro 266

266

COLLECTIVE INVESTMENT SCHEMESJPM Global High Yield Bond1 10,185

Infrastructure Investments Fund(IIF UK 1 LP)2 9,540

JPM Emerging Markets Debt1 4,015

JPM Emerging Markets Local

Currency Debt1 2,996

26,736

Total Investments 85,652

DERIVATIVE INSTRUMENTSFUTURES1

EURO STOXX 50 Index Sep 2018 94

Australia 10 Year Bond Sep 2018 42

S&P 500 Emini Index Sep 2018 41

FTSE 100 Index Sep 2018 14

US Long Bond Dec 2018 (2)

S&P/TSX 60 Index Sep 2018 (3)

MSCI Emerging Markets Index Sep 2018 (14)

TOPIX Index Sep 2018 (22)

Total Derivative Instruments 150

Total Investments and Derivatives 85,8021 Representing unrealised gains and losses on futurescontracts and will not agree to the Statement ofFinancial Position on page 16, or Note 8 Fairvaluation of investments and derivatives on page 20.

2 The General Partner of IIF UK 1 LP is an affiliate ofJPMorgan Asset Management (UK) Limited.

AT 31ST AUGUST 2018

Financial Statements

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S T A T E M E N T O F C O M P R E H E N S I V E I N C O M E

FOR THE PERIOD FROM INCORPORATION ON 19TH DECEMBER 2017 TO 31ST AUGUST 2018

(Unaudited)Period ended

31st August 2018Revenue Capital Total

£’000 £’000 £’000

Gains on investments held at fair value through profit or loss — 3,841 3,841 Net foreign currency losses — (2,545) (2,545)Income from investments 2,036 — 2,036 Interest receivable 60 — 60

Gross return 2,096 1,296 3,392 Management fee1 (93) (172) (265)Other administrative expenses (156) — (156)

Net return on ordinary activities before finance costs and taxation 1,847 1,124 2,971Finance costs1 (1) (2) (3)

Net return on ordinary activities before taxation 1,846 1,122 2,968 Taxation (152) — (152)

Net return on ordinary activities after taxation 1,694 1,122 2,816

Return per share (note 4) 1.85p 1.22p 3.07p

1 The Board has agreed to allocate management fees and finance costs 65% to capital and 35% to revenue.

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

The ‘Total’ column of this statement is the profit and loss account of the Company and the ‘Revenue’ and ‘Capital’ columns representsupplementary information prepared under guidance issued by the Association of Investment Companies.

The net return on ordinary activities after taxation represents the profit for the period and also the total comprehensive income.

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F I N A N C I A L S T A T E M E N T S | 1 5

S T A T E M E N T O F C H A N G E S I N E Q U I T Y

1


Called upshare Share Special Capital Revenuecapital premium reserve1 reserves1 reserve1 Total£'000 £'000 £'000 £'000 £'000 £'000

Period ended 31st August 2018 (Unaudited)At 19th December 2017 — — — — — —Issue of ordinary shares at launch 931 92,184 — — — 93,115Fund launch expenses — (683) — — — (683)Redesignation of share premium reserve — (91,496) 91,496 — — —Repurchase of shares into Treasury — — (5,497) — — (5,497)Net return for the period — — — 1,122 1,694 2,816 Distributions paid in the period (note 5) — — — — (929) (929)

At 31st August 2018 931 5 85,999 1,122 765 88,822

1 These reserves form the distributable reserves of the Company and may be used to fund distributions to investors via distribution payments.

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S T A T E M E N T O F F I N A N C I A L P O S I T I O N

AS AT 31ST AUGUST 2018

(Unaudited)31st August 2018

£’000

Fixed assets Investments held at fair value through profit or loss 85,652

Current assetsDerivative financial assets 818Debtors 304Cash and short term deposits 2,373

3,495

Current liabilitiesCreditors: amounts falling due within one year (140)Derivative financial liabilities (185)

Net current assets 3,170

Total assets less current liabilities 88,822

Net assets 88,822

Capital and reservesCalled up share capital 931Share premium 5Special reserve 85,999Capital reserves 1,122Revenue reserve 765

Total shareholders’ funds 88,822

Net asset value per share (note 6) 101.7p

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S T A T E M E N T O F C A S H F L O W S

1


(Unaudited)Period Ended

31st August 2018£’000

Net cash outflow from operations before distributions and interest (note 7) (36)Dividends received 1,262 Interest received 428Overseas tax recovered 4 Interest paid (3)

Net cash inflow from operating activities 1,655

Purchases of investments and derivatives (118,126)Sales of investments and derivatives 36,461 Settlement of foreign currency contracts (3,395)Settlement of future contracts (294)

Net cash outflow from investing activities (85,354)

Issue of ordinary shares at launch 93,115 Fund launch expenses (720)Repurchase of shares into Treasury (5,399)Dividend distribution (886)Interest distribution (43)

Net cash inflow from financing activities 86,067

Increase in cash and cash equivalents 2,368

Cash and cash equivalents at start of period — Exchange movements 5Cash and cash equivalents at end of period 2,373

Increase in cash and cash equivalents 2,368

Cash and cash equivalents consist of:Cash and short term deposits 1,080 Cash held in JPMorgan Sterling Liquidity Fund 1,293

Total 2,373

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N O T E S T O T H E F I N A N C I A L S T A T E M E N T S


1. Accounting period

The financial statements cover the period from the date of the incorporation of the Company on 19th December 2017 to31st August 2018. Dealings in the Company’s shares began on 2nd March 2018 and the Company began investing on that date.

2. Financial statements

The information contained within the financial statements for this half year report has not been audited or reviewed by theCompany’s auditors.

3. Accounting policies

The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 ‘The Financial ReportingStandard applicable in the UK and Republic of Ireland’ of the United Kingdom Generally Accepted Accounting Practice(‘UK GAAP’) and with the Statement of Recommended Practice ‘Financial Statements of Investment Trust Companies and VentureCapital Trusts’ (the revised ‘SORP’) issued by the Association of Investment Companies in November 2014 and updated inFebruary 2018.

FRS 104, ‘Interim Financial Reporting’, issued by the Financial Reporting Council (‘FRC’) in March 2015 has been applied inpreparing this condensed set of financial statements for the period ended 31st August 2018.

The Board has agreed to allocate management fees and finance costs 65% to capital and 35% to revenue, reflecting theinvestment objective of the Company.

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

4. Return per share(Unaudited)

Period ended31st August 2018

£’000

Return per share is based on the following:Revenue return 1,694 Capital return 1,122

Total return 2,816

Weighted average number of shares in issue 91,775,740

Revenue return per share 1.85pCapital return per share 1.22p

Total return per share 3.07p

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1

5. Distribution paid (Unaudited)


£’000

First interim distribution of 1.0p1 929

Total distribution paid in the period 929

1 1.0p distribution consists of 0.9538p dividend and 0.0462p interest.

Distribution paid in the period has been funded from the revenue reserve.

A second interim distribution of 1.0 pence per ordinary share amounting to £871,614 has been declared payable in respect of theyear ending 28th February 2019.

6. Net asset value per share


31st August 2018

Net assets (£’000) 88,822 Shares in issue at period end 87,361,408

Net asset value per share 101.7p

7. Reconciliation of net return on ordinary activities before finance costs and taxation to net cashoutflow from operations before distributions and interest


31st August 2018£’000

Total return on ordinary activities before finance costs and taxation 2,971 Less: capital return on ordinary activities before finance costs and taxation (1,124)Increase in accrued income and other debtors (173)Increase in accrued expenses 40 Overseas withholding tax (250)Management fee charged to capital (172)Dividends received (1,262)Interest received (428)Realised gains on foreign currency transactions 362

Net cash outflow from operations before distributions and interest (36)

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8. Fair valuation of investments and derivatives

The fair value hierarchy disclosures required by FRS 102 are given below.

The Company’s financial instruments within the scope of FRS 102 that are held at fair value comprise its investment portfolio andderivative financial instruments.

The investments are categorised into a hierarchy consisting of the following three levels:

(1) The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at themeasurement date

(2) Inputs other than quoted prices included within Level 1 that are observable (i.e.: developed using market data) for theasset or liability, either directly or indirectly

(3) Inputs are unobservable (i.e.: for which market data is unavailable) for the asset or liability

The fair value hierarchy analysis for financial instruments held at fair value at the period end is as follows:

(Unaudited) Period ended 31st August 2018

Assets Liabilities £’000 £’000

Level 11 59,107 (41)Level 22 27,363 (144)

Total value of investments 86,470 (185)

1 Includes futures currency contracts.2 Includes Société d’Investissement à Capital Variable (SICAV), forward currency contracts and investment in Infrastructure Investments Fund (IIF UK 1 LP), an English limitedpartnership.

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Interim Management Report

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I N T E R I M M A N A G E M E N T R E P O R T

The Company is required to make the following disclosures in its Interim Report:

Principal Risks and Uncertainties

The principal risks and uncertainties faced by the Company fall into five broad categories: investment and strategy; accounting, legaland regulatory; corporate governance and shareholder relations; operational; and financial.

Related Parties Transactions

JPMorgan Asset Management Holdings (UK) Ltd, an affiliate of the Company’s Manager, acquired 1,639,968 ordinary shares of theCompany during the period under review. As at 31st August 2018 JPMorgan Asset Management Holdings (UK) Ltd had reduced itsholding to nil. No other transactions with related parties have taken place which have materially affected the financial position or theperformance of the Company during the period.

Going Concern

The Directors believe, having considered the Company’s investment objectives, risk management policies, capital management policiesand procedures, nature of the portfolio and expenditure projections, that the Company has adequate resources, an appropriatefinancial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future and,more specifically, that there are no material uncertainties relating to the Company that would prevent its ability to continue inoperational existence for at least twelve months from the date of the approval of this interim financial report. For these reasons, theyconsider there is reasonable evidence to continue to adopt the going concern basis in preparing the accounts.

Directors’ Responsibilities

The Board of Directors confirms that, to the best of its knowledge:

(i) the condensed set of financial statements contained within the interim financial report has been prepared in accordance with theAccounting Standards Board’s Statement ‘Half-Yearly Financial Reports; and gives a true and fair view of the assets, liabilities,financial position and net return of the Company as required by the UK Listing Authority Disclosure and Transparency Rules(‘DTR’) 4.2.4R; and

(ii) the interim management report includes a fair review of the information required by DTR 4.2.7R and 4.2.8R.

In order to provide these confirmations, and in preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed andexplained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continuein business;

and the Directors confirm that they have done so.

For and on behalf of the BoardSir Laurence MagnusChairman 17th October 2018

MATE HY pp21-22 17/10/2018 16:52 Page 22

Shareholder Information

MATE HY pp23-28.qxp 17/10/2018 16:52 Page 23

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GLOSSARY OF TERMS AND ALTERNATIVE PERFORMANCE MEASURES ( ‘APMs ’ )

Return to Shareholders (APM)Total return to the shareholder, on a last traded price to last traded price basis, assuming that all distributions received werereinvested, without transaction costs, into the shares of the Company at the time the shares were quoted ex-dividend.

Period endedTotal return calculation Page 31st August 2018

Opening share price as at 2nd March 2018 (p) 3 99.8

Closing share price as at 31st August 2018 (p) 3 98.5 (a)

Total distribution adjustment factor1 1.010526 (b)

Adjusted closing share price (c = a x b) 99.5 (c)

Total return to shareholders –0.3%

1 The distribution adjustment factor is calculated on the assumption that the distributions paid out by the Company are reinvested into the shares of the Company at the lasttraded price quoted at the ex-dividend date.

Return on Net Assets (APM)Total return on net asset value ('NAV') per share, on a bid value to bid value basis, assuming that all distribution paid out by theCompany were reinvested, into the shares of the Company at the NAV per share at the time the shares were quoted ex-dividend.

Period endedTotal return calculation Page 31st August 2018

Opening cum-income NAV per share as at 2nd March 2018 (p) 3 99.3

Closing cum-income NAV per share as at 31st August 2018 (p) 3 101.7 (a)

Total distribution adjustment factor2 1.010060 (b)

Adjusted closing cum-income NAV per share (c = a x b) 102.7 (c)

Total return on net assets 3.4%

2 The distribution adjustment factor is calculated on the assumption that the distributions paid out by the Company are reinvested into the shares of the Company at thecum-income NAV at the ex-dividend date.

Reference Index

Due to the nature of the Company, it is thought that the Reference Index of LIBOR one-month Sterling +4.5% most closely reflects theprofile of the portfolio and is the most appropriate measure by which performance can be measure against.

The Company's investment strategy does not 'track' this index and consequently, there may be some divergence between theCompany's performance and that of the Reference Index.

Gearing / Net Cash (APM)Gearing represents the excess amount above shareholder's funds of total investments, expressed as a percentage of the shareholders'funds. If the amount calculated is negative, this is shown as a ‘net cash’ position.

Period endedGearing calculation Page 31st August 2018

Investments held at fair value through profit or loss 16 85,652 (a) Net assets 16 88,822 (b)

Net Cash (c = a / b – 1) 3.6% (c)


S H A R E H O L D E R I N F O R M A T I O N | 2 5

GLOSSARY OF TERMS AND ALTERNATIVE PERFORMANCE MEASURES ( ‘APMs ’ )

2

Ongoing Charges (APM)The ongoing charges represents the Company's management fee and all other operating expenses excluding finance costs payable,expressed as a percentage of the average of the daily cum-income net assets during the year and is calculated in accordance withguidance issued by the Association of Investment Companies.

The figure as at 31st August 2018 is an estimated annualised figure based on the numbers for the period ended 31st August 2018.


Ongoing charges calculation Page £’000

Management fee (annualised) 14 530

Other administrative expenses (annualised) 14 312

Total management fee and other administrative expenses 842 (a)

Average daily cum-income net assets 92,394 (b)

Ongoing charges (c = a / b) 0.91% (c)

Share Price Discount / Premium to Net Asset Value ('NAV') per share (APM)If the share price of an investment trust is lower than the NAV per share, the shares are said to be trading at a discount. The discountis shown as a percentage of the NAV per share. The opposite of a discount is a premium. It is more common for an investment trusts'shares to trade at a discount than at a premium (see page 3).


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W H E R E T O B U Y J P M O R G A N M U L T I - A S S E T T R U S T P L C

You can invest in a JPMorgan Multi-Asset Trust plc through thefollowing;

1. Directly from J.P. Morgan

Investment Account

The Company’s shares are available in the J.P. Morgan InvestmentAccount, which facilitates both regular monthly investments andoccasional lump sum investments in the Company’s ordinaryshares. Shareholders who would like information on theInvestment Account should call J.P. Morgan Asset Managementfree on 0800 20 40 20 or visit its website atam.jpmorgan.co.uk/investor

Stocks & Shares Individual Savings Accounts (ISA)

The Company’s shares are eligible investments withina J.P. Morgan ISA. For the 2018/19 tax year, from 6th April 2018and ending 5th April 2019, the total ISA allowance is £20,000.The shares are also available in a J.P. Morgan Junior ISA. Detailsare available from J.P. Morgan Asset Management free on0800 20 40 20 or via its website at am.jpmorgan.co.uk/investor

2. Via a third party provider

Third party providers include;

Please note this list is not exhaustive and the availability ofindividual trusts may vary depending on the provider. Thesewebsites are third party sites and J.P. Morgan Asset Managementdoes not endorse or recommend any. Please observe each site’sprivacy and cookie policies as well as their platform chargesstructure.

3. Through a professional adviser

Professional advisers are usually able to access the products of allthe companies in the market and can help you find an investmentthat suits your individual circumstances. An adviser will let youknow the fee for their service before you go ahead. You can findan adviser at unbiased.co.uk

You may also buy investment trusts through stockbrokers, wealthmanagers and banks.

To familiarise yourself with the Financial Conduct Authority (FCA)adviser charging and commission rules, visit fca.org.uk

AJ BellAlliance Trust SavingsBarclays StockbrokersBestinvestCharles Stanley DirectFundsNetwork

Hargreaves LansdownInteractive InvestorJames BrearleyJames HaySelftradeThe Share Centre

Avoid investment fraud1 Reject cold calls

If you’ve received unsolicited contact about an investment opportunity, chances are it’s a high risk investment or a scam. You should treat the call with extreme caution. The safest thing to do is to hang up.

2 Check the FCA Warning List The FCA Warning List is a list of �rms and individuals we know are operating without our authorisation.

3 Get impartial advice Think about getting impartial �nancial advice before you hand over any money. Seek advice from someone unconnected to the �rm that has approached you.

Report a ScamIf you suspect that you have been approached by fraudsters please tell the FCA using the reporting form at www.fca.org.uk/consumers/report-scam-unauthorised-�rm. You can also call the FCA Consumer Helpline on 0800 111 6768

If you have lost money to investment fraud, you should report it to Action Fraud on 0300 123 2040 or online at www.actionfraud.police.uk

Find out more at www.fca.org.uk/scamsmart

Investment scams are designed to look like genuine investmentsSpot the warning signs

Have you been:

• contacted out of the blue• promised tempting returns

and told the investment is safe• called repeatedly, or• told the offer is only available

for a limited time?

If so, you might have been contacted by fraudsters. Remember: if it sounds too good to be true,

it probably is!

Be ScamSmart


FINANCIAL CALENDAR

Interim results announced October

Final results announced May

Annual General Meeting July

Financial year-end date 28/29 February

Distributions payable February, May, August and November

I N F O R M AT I O N A B O U T T H E C O M PA N Y

HistoryThe Company was incorporated as a public limited company in England on19th December 2017. Most of the £93.1 million proceeds raised on its launch onthe London Stock Exchange on 2nd March 2018 arose from shareholders ofJPMorgan Income & Capital Trust plc, who ‘rolled-over’ their holdings into theCompany.

DirectorsSir Laurence Magnus (Chairman) Sian HansenRichard HillsSarah MacAulayJames West

Company NumbersCompany Registration Number: 11118654London Stock Exchange Code : MATEISIN: GB00BFWJJT14Bloomberg: MATE LNLEI: 549300C0UCY8X2QXW762Reuters: MATE J.L

Market InformationThe Company’s unaudited net asset value (‘NAV’) is published daily via the LondonStock Exchange.

The Company’s shares are listed on the London Stock Exchange. The market priceis shown daily in the Financial Times, The Times, The Daily Telegraph, TheScotsman and on the Company’s website at www.jpmmultiasset.co.uk, where theshare price is updated every fifteen minutes during trading hours.

WebsiteThe Company’s website can be found at www.jpmmultiassettrust.co.uk andincludes useful information about the Company, such as daily prices,factsheets and will include current and historic half year and annual reportsonce available.

Share TransactionsThe Company’s shares may be dealt in directly through a stockbroker orprofessional adviser acting on an investor’s behalf. They may also be purchasedand held through the J.P. Morgan Investment Account, J.P. Morgan ISA andJ.P. Morgan Junior ISA. These products are all available on the online service atjpmorgan.co.uk/online

Manager and Company SecretaryJPMorgan Funds Limited

Company’s Registered Office60 Victoria EmbankmentLondon EC4Y 0JPTelephone: 020 7742 4000For Company Secretarial and administrative matters, please contactPaul Winship at the above address.

DepositaryThe Bank of New York Mellon (International) Limited1 Canada SquareLondon E14 5AL

The Depositary has appointed JPMorgan Chase Bank, N.A. as the Company’scustodian.

CustodianJ.P. Morgan Chase Bank, National Association 25 Bank StreetCanary WharfLondon E14 5JP

RegistrarsEquiniti Limited Aspect House Spencer Road LancingWest Sussex BN99 6DATelephone number: 0371 384 2326

Lines open 8.30 a.m. to 5.30 p.m. Monday to Friday. Calls to the helpline willcost no more than a national rate call to a 01 or 02 number. Callers fromoverseas should dial +44 121 415 0225.

Notifications of changes of address and enquiries regarding sharecertificates or dividend cheques should be made in writing to the Registrarquoting reference 1084. Registered shareholders can obtain further detailson their holdings on the internet by visiting www.shareview.co.uk.

Independent AuditorsPricewaterhouseCoopers LLP 7 More London Riverside London SE1 2RT

BrokersPanmure GordonOne New Change London EC4M 9AF

Savings Product AdministratorsFor queries on the J.P. Morgan Investment Account and J.P. Morgan ISA,see contact details on the back cover of this report.

A member of the AIC

S H A R E H O L D E R I N F O R M AT I O N | 29


www.jpmmultiassettrust.co.uk

Telephone calls may be recorded and monitored for security and training purposes.

GB I Multi Asset | 10/18

J.P. MORGAN HELPLINE

Freephone 0800 20 40 20 or +44 (0) 1268 444470.Telephone lines are open Monday to Friday, 9.00am to 5.30pm.


Documents

JPMorgan Multi-Asset Trust plc · Capital Structure At 31st August 2018, the Company’s share capital comprised 93,115,643 ordinary shares of 1p each including 5,754,235 held in