JPMORGAN AMERICAN INVESTMENT TRUST PLC
HALF YEAR REPORT & FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30TH JUNE 2026
Highlights
· NAV total return of +10.7%, compared with +11.6% for the S&P 500 benchmark in sterling terms. Share price total return +9.9%.
· Five-year cumulative NAV total return of +91.0% compared with +93.1% for the Benchmark; five-year share price cumulative total return of +97.1%.
· Ten-year cumulative NAV total return of +342.2% compared with +315.1% for the Benchmark; ten-year share price cumulative total return of +348.4%.
· Since the change in investment approach on 1st June 2019, the Company has outperformed the benchmark by 14.1% to the end of June 2026, providing a NAV total return to shareholders of +198.0%, compared with a benchmark return of +183.9%.
· Interim dividend of 2.75 pence per share for the six months ended 30th June 2026.
· The Company remains one of the most competitively priced US actively managed funds available to UK investors. Ongoing Charge of 0.35% and a management fee tier charging 0.25% on net assets over £1 billion.
· Buybacks of 3.7 million shares at a cost of £42.6 million, at an average discount of 3.6%, producing a modest accretion to the NAV for continuing shareholders.
Robert Talbut, Chairman, commented:
“As ever, the investment outlook is clouded by some uncertainty. Geopolitical tensions remain elevated, in part due to the unresolved situation in the Middle East. Yet despite these uncertainties and potentially adverse developments, US equities power on, continuing to hit fresh all-time highs, underpinned by the dynamism and adaptability of the US economy and its corporate sector. The Board therefore sees good reasons to share the Portfolio Managers’ positive view of the outlook for the US market and for the Company over the remainder of this year and beyond. We remain confident in the team’s ability to identify and capitalise on compelling investments that will deliver capital growth and long-term outperformance to shareholders.”
Portfolio Managers Felise Agranoff, Jack Caffrey and Graham Spence commented:
“The first half of 2026 was marked by a remarkable performance from US equities, with markets overcoming periods of heightened volatility to deliver strong returns. Sentiment weakened during the first quarter as geopolitical tensions in the Middle East intensified. However, despite these headwinds, underlying US economic conditions proved resilient. While the Company participated in the strong performance in US equities during the period, performance lagged the benchmark as market leadership remained concentrated in a relatively narrow group of AI-related beneficiaries. Although…disappointing, it should be viewed in the context of the Company’s long-term investment approach, which remains focused on identifying high-quality businesses with durable competitive advantages and attractive future growth prospects. These are the types of stocks which we believe deliver the best returns over the long term.”
“While we remain mindful of the risks associated with geopolitical developments, US monetary policy and potential shifts in market leadership, our focus remains on identifying high-quality businesses with durable competitive advantages and attractive long-term growth opportunities. We believe this combination leaves the portfolio well positioned to navigate periods of volatility, while also participating in the many and varied opportunities that will drive future growth and portfolio returns.”
Robert Talbut, Chairman, commented:
“As ever, the investment outlook is clouded by some uncertainty. Geopolitical tensions remain elevated, in part due to the unresolved situation in the Middle East. Yet despite these uncertainties and potentially adverse developments, US equities power on, continuing to hit fresh all-time highs, underpinned by the dynamism and adaptability of the US economy and its corporate sector. The Board therefore sees good reasons to share the Portfolio Managers’ positive view of the outlook for the US market and for the Company over the remainder of this year and beyond. We remain confident in the team’s ability to identify and capitalise on compelling investments that will deliver capital growth and long-term outperformance to shareholders.”
Portfolio Managers Felise Agranoff, Jack Caffrey and Graham Spence commented:
“The first half of 2026 was marked by a remarkable performance from US equities, with markets overcoming periods of heightened volatility to deliver strong returns. Sentiment weakened during the first quarter as geopolitical tensions in the Middle East intensified. However, despite these headwinds, underlying US economic conditions proved resilient. While the Company participated in the strong performance in US equities during the period, performance lagged the benchmark as market leadership remained concentrated in a relatively narrow group of AI-related beneficiaries. Although…disappointing, it should be viewed in the context of the Company’s long-term investment approach, which remains focused on identifying high-quality businesses with durable competitive advantages and attractive future growth prospects. These are the types of stocks which we believe deliver the best returns over the long term.”
“While we remain mindful of the risks associated with geopolitical developments, US monetary policy and potential shifts in market leadership, our focus remains on identifying high-quality businesses with durable competitive advantages and attractive long-term growth opportunities. We believe this combination leaves the portfolio well positioned to navigate periods of volatility, while also participating in the many and varied opportunities that will drive future growth and portfolio returns.”
Chair’s Statement
Introduction
I am pleased to present the Company’s results for the six months ended 30th June 2026. It was a period in which US equity markets made further significant gains despite a bout of severe volatility triggered by the outbreak of conflict in the Middle East. The market was supported during the period by stocks exposed to heavy investment in artificial intelligence (‘AI’) infrastructure, and by generally better-than-expected corporate earnings. Market leadership remained relatively concentrated among a limited number of expensive, AI-related stocks expected to benefit from the surge in investment, and a few low-quality, speculative names. These stocks outperformed higher-quality or defensive businesses.
This created a challenging relative environment for the Company’s focus on a high conviction, high-quality portfolio of well-priced US value and growth stocks. The Company delivered a total return on net assets per share of +10.7% in sterling terms for the six months ended 30th June 2026, compared with a total return of +11.6% from the Company’s benchmark, the S&P 500 Index in sterling terms, resulting in underperformance of 0.9 percentage points on a net asset value per share (‘NAV’) basis. The Company’s share price rose 9.9% in sterling terms over the period.
Although the period’s relative performance was disappointing, the Portfolio Managers adopt a long-term investment approach, so it is important to consider performance over a similar timeframe. Since the Company changed its investment approach on 1st June 2019, it has outperformed the benchmark index by 14.1% to the end of June 2026, providing a NAV total return to shareholders of +198.0%, compared with a benchmark return of +183.9%. This represents an annualised outperformance of 0.7 percentage point since the strategy change. The Board remains confident this approach will continue to deliver outperformance against the benchmark over time.
The Portfolio
The Company’s assets are concentrated in a high-conviction large cap portfolio of approximately 40 of the Manager’s best growth and value ideas, which represents at least 90% of the total portfolio, with the flexibility to allocate up to 10% of assets to a portfolio of smaller companies. At 30th June 2026, the large cap portfolio held 39 stocks and accounted for 92.2% of total investments, while the smaller companies portfolio represented 7.8% of total investments. Within the large cap portfolio, the allocation was 54% to growth stocks and 46% to value stocks at the period end, within the permitted range of 60:40 to 40:60.
Further details of performance attribution, portfolio activity and positioning are set out in the Investment Manager’s Report below, along with the Portfolio Managers’ view on the outlook for US equity markets.
Investment Managers
As previously reported, with effect from 1st April 2026, Eric Ghernati moved internally within JPMorgan and Felise Agranoff, who has 22 years’ experience in the industry, continues to lead in the selection of the growth stocks in the large cap portfolio. She is supported by a well-resourced team of experienced analysts in the Growth team. The portfolio’s value stocks continue to be managed by Jack Caffrey and Graham Spence, who have 34 and 24 years’ experience respectively in the industry.
There are no changes to the investment strategy or process as a result of Eric’s move.
Share Price and Premium/Discount
The average share price discount at which the Company’s shares traded relative to NAV over the six months was 3.4%, and at the end of the period, the discount stood at 3.4%, compared to a discount of 2.7% at 31st December 2025.
The Company maintained its discount management policy of buying back shares when they trade at anything more than a small discount to NAV. During the period it purchased 3,760,809 ordinary shares into Treasury, representing approximately 2.2% of the ordinary shares in issue (excluding Treasury shares) at the start of the period, at a total cost of £42.6 million. These shares were purchased at an average discount to NAV of 3.6%, producing a modest accretion to the NAV for continuing shareholders. In all, share buybacks contributed +0.1 percentage points to relative return over the six-month period.
Since the end of the half year, 831,177 shares have been purchased into Treasury. The share price discount stood at 3.0% as at 17 August 2026.
Dividends
While capital growth is the primary aim of the Company, the Board recognises that dividend income can be an important element of shareholder returns. As such, the Board has sought to enhance shareholder returns with a longer-term progressive dividend policy.
I am pleased to announce that the Company intends to pay an interim dividend per share of 2.75 pence (2025: 2.75 pence) in respect of the six months ended 30th June 2026. This will be payable on 5th October 2026 to shareholders on the register on 28th August 2026. The Board continues to monitor the net income position of the Company and, in the absence of unforeseen circumstances, aims to continue its progressive dividend policy.
Gearing
The Company has the capacity to deploy gearing, which is expected to enhance performance over time, provided that the cost of the gearing is less than the performance delivered by the Company’s equity portfolio. Cash and gearing contributed positively to relative performance during the review period.
The Board believes it is prudent for the Company’s gearing capacity to be funded from a mix of sources, including short- and longer-term borrowings, issued on both fixed and floating rate terms. The Company’s gearing strategy is currently implemented via the use of two forms of debt.
The first is an £85 million revolving credit facility (with an additional £15 million accordion available), provided by Industrial and Commercial Bank of China Limited, London Branch, which matures in August 2028. This is drawn in US Dollars to match the currency of the Company’s asset base. During the review period, the Company added to gearing by drawing down a further £41.0 million under the ICBC revolving credit facility, taking the total drawdown to £71.6 million. The increase reflected the Investment Manager’s positive outlook for the US market and its identification of attractive investment opportunities. Gearing contributed positively to the Company’s performance over the period.
Alongside this bank facility, the Company has in issue a combined US$100 million of unsecured loan notes issued via Private Placement Notes, US$65 million of which is repayable in February 2031 and carries a fixed interest rate of 2.55% per annum, and US$35 million of which matures in October 2032 and carries a fixed interest rate of 2.32%.
The Company’s policy is that gearing should sit within a range between 5% net cash to 20% geared in normal market conditions. The Company ended the period with gearing equivalent to 5.9% of net assets (31st December 2025: 4.7%), and the Board regularly reviews the appropriate gearing level.
The Board
As previously announced, my fellow directors and I are pleased to welcome Clare Brady and Kevin Troup as Non-Executive Directors of the Company with effect from 15th May 2026. Clare Brady has over 35 years’ experience in banking and financial services. She is non-executive Chairman of Fidelity Asian Values plc and a non-executive director of CT Healthcare Trust PLC and of M&G Group Limited. Kevin Troup is a qualified Chartered Accountant with over 30 years’ experience in the investment industry. He is a non-executive director of Baillie Gifford Shin Nippon PLC and Baring Fund Managers Limited and chairs the Investment Committee of The Robertson Trust. The full biographies of the Board’s two new members were set out in the Company’s announcement of 8th April 2026.
These two appointments are consistent with the Board’s succession planning over the longer term. Following these appointments, the number of Directors rose to six, but the Board will revert to its usual size of five members following my retirement at the 2027 AGM, as previously announced.
Shareholder Engagement
The Board believes that insight gained from shareholder interactions is very helpful in assisting it with the management of the Company’s affairs and, as opportunities arise, Board members welcome and seek such meetings.
During the review period, the Manager held meetings and regular calls with shareholders, including webinars, and provided portfolio and market updates on the Company’s website. In the Board’s view, such activity is an essential part of building understanding and confidence in the Manager’s process among shareholders, and we support the Manager’s plans to build upon such engagements going forward.
As part of this engagement process, the Company provides email updates containing regular news and views, together with the latest performance information. Shareholders who have not already registered to receive these communications may do so via https://web.gim.jpmorgan.com/emea_investment_trust_subscription/welcome?targetFund=JAM.
Outlook
As ever, the investment outlook is clouded by some uncertainty. Geopolitical tensions remain elevated, in part due to the unresolved situation in the Middle East, which is driving sharp fluctuations in energy prices in response to intermittent outbreaks of hostilities. Even after the latest pause in attacks, oil prices remain well above their pre-conflict levels. Higher energy prices are, in turn, feeding through to inflation and fuelling expectations of a modest rise in near-term US interest rates. The US’s aggressive tariff policies are exacerbating nascent inflation pressures and adding some concerns about global growth following the recent imposition of a fresh round of tariffs on goods from most of the US’s trading partners.
Yet despite these uncertainties and potentially adverse developments, US equities power on, continuing to hit fresh all-time highs, underpinned by the dynamism and adaptability of the US economy and its corporate sector. The most recent illustration of this resilience is the leading role US businesses are playing in the AI revolution. This is still in its early stages but looks set to boost demand and generate new opportunities not only for companies with direct exposure to the AI investment cycle, but also to a broadening selection of businesses operating across virtually all industries. The resultant gains in productivity, corporate revenues and profitability suggest scope for impressive, above trend, earnings growth, not just this year but over the longer term. Hence the Board remains optimistic in the outlook for the Company’s shares.
The Board therefore sees good reasons to share the Portfolio Managers’ positive view of the outlook for the US market and for the Company over the remainder of this year and beyond. We also welcome the team’s efforts to increase the Company’s exposure to the many high-quality, well-priced opportunities the AI boom is creating across an increasing number of sectors. We remain confident in the team’s ability to identify and capitalise on compelling investments that will deliver capital growth and long-term outperformance to shareholders.
Thank you for your continued support.