LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN INDIA GROWTH & INCOME PLC
HALF YEAR REPORT & FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31st MARCH 2026
Legal Entity Identifier: 549300OHW8R1C2WBYK02
Information disclosed in accordance with the DTR 4.1.3
CHAIRMAN’S STATEMENT
Performance
The Indian equity market experienced further weakness over the six months ended 31st March 2026, weighed down by several adverse influences, including softening earnings, ongoing high valuations and fears of AI-led disruption, especially to IT companies. In addition, conflict in the Middle East fuelled concerns about the adverse economic impact of rising oil prices, given India’s heavy reliance on imported energy. These factors, especially rising energy costs and depressed market sentiment, saw foreign sales of Indian equities reach a record high in March 2026.
Against this unfavourable backdrop, the Company’s benchmark, the MSCI India Index, declined 12.4% over the period in sterling terms. The Company’s return on net assets was -16.5% in sterling terms. Despite a meaningful reversal of the Indian CGT deferred tax liability over the period, this benefit to return on net assets was outweighed by weaker portfolio performance. In addition, its share price declined by 17.6% as the discount to NAV widened slightly during the period. This underperformance was due in large part to the Company’s focus on higher quality, small and mid-cap names, which have lagged cyclical value stocks over the past year. Our overweight to so-called ‘AI losers’ amongst IT companies and platform-based businesses also detracted from relative returns.
The Portfolio Managers have a long-term investment focus and make investment decisions on the expectation that positions will be maintained for five or more years. It is therefore more meaningful to judge their performance over a longer time frame. On this basis, the portfolio made an annualised return of +2.0% in NAV terms over the five years to end March 2026 and averaged a return of +4.7% per annum over the corresponding ten-year period. This performance lagged the benchmark’s annualised returns of +5.5% over five years and +8.7% over ten years. This underperformance is in significant part caused by the fact that the benchmark does not include the adverse effects of capital gains tax during periods of market strength, the accrual of which has depressed the Company’s net asset value. The impact of capital gains tax is detailed on page 7 of the 2026 Half Year Report.
The Portfolio Managers provide a detailed commentary on performance over the six-month review period in their report on pages 13 to 17 of the 2026 Half Year Report. They also discuss portfolio activity and their outlook for the Indian market over the remainder of this year and beyond.
Discount and Share Repurchases
It is the Board’s view that it is in shareholders’ interests that the Company’s share price should not differ excessively from the underlying NAV under normal market conditions. As such, it constantly considers 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. During the past year the Company adopted a policy to target a single digit discount through active market buybacks.
In the six months ended 31st March 2026, the Company repurchased 776,263 ordinary shares into Treasury, equating to 1.7% of the Company’s issued share capital (excluding the shares held in Treasury) at the start of the period. Since the half year end, a further 798,343 ordinary shares have been bought back for holding in Treasury.
Over the six months ended 31st March 2026, the Company’s shares traded at an average discount of 8.1% to NAV. The discount widened from 8.9% at the prior financial year end to 10.2% at the half-year end, reflecting increased market volatility driven by factors like the conflict in the Middle East. As at 12th June 2026, the discount was 9.2%.
Triennial Tender Offer
As previously announced, a triennial tender offer for 100% of the Company’s outstanding share capital at a 3% discount to the prevailing NAV (the ‘Triennial Tender Offers’) will be made to shareholders, with the first offer expected in Q2 2028. Feedback from shareholders has made it clear that maintaining the Company’s size and scale is crucial for their continued engagement. Accordingly, the Board reserves the right to withdraw the Triennial Tender Offer if the level of shares tendered would result in the Company’s NAV falling below £150 million. Should this occur, the Board would expect to propose resolutions to shareholders to wind up the Company. Additionally, the Board notes that the next continuation vote will be presented to shareholders at the Company’s AGM in 2029.
Enhanced Dividend Distribution Policy
During 2025 the Company implemented an enhanced dividend distribution policy to pay dividends each financial year totalling at least 4% of the NAV of the Company at the end of the preceding financial year. Dividends will be paid by way of four equal interim dividends in December, March, June and September each year.
For the 2026 financial year, each quarterly dividend has been set at 11.08 pence per ordinary share. The first three quarterly dividends have been declared. A fourth and final quarterly dividend of 11.08 pence per ordinary share is planned for declaration on or around 1st July 2026, bringing the total annual dividend for the 2026 financial year to 44.32 pence per ordinary share.
Commencing with the second quarterly interim dividend declared in January 2026, the Company introduced a Dividend Reinvestment Plan (‘DRIP’) for shareholders. For details on the DRIP, please contact the Company’s Registrar, Computershare Investor Services PLC on +44 (0)370 707 1516 or by visiting www.investorcentre.co.uk.
Stay Informed
The Company delivers email updates on the Company’s progress with regular news and views, as well as the latest performance data. If you have not already signed up to receive these communications and you wish to do so, you can opt in via www.tinyurl.com/JIGI-Sign-Up or by scanning the QR code on this page. Shareholders are also encouraged to visit the Company’s website at jpmindiagrowthandincome.co.uk, which contains detailed information on the Company’s performance, and monthly commentaries, as well as interviews and recordings with the Portfolio Managers.
Outlook
Despite the market’s recent setbacks, the Board remains convinced that the investment case for Indian equities is compelling. Our conviction is based on India’s very positive long-term growth trajectory, which is underpinned by several major structural trends, including lifestyle upgrades by the country’s growing middle class, rising demand for financial services and ongoing investment in technology and infrastructure. China is the only other major economy with any prospect of achieving comparable rates of growth over the next decade. Meanwhile, India’s nearer-term growth is being supported by the government and the central bank. Both have implemented policies to boost domestic activity, protect consumers from rising oil prices and bolster sectors such as automotives, clothing and electronics, most adversely impacted by US tariffs.
India’s favourable long-term prospects should keep generating many exciting opportunities to invest in quality companies, with superior growth prospects, at reasonable valuations. Indeed, the market’s underperformance versus other emerging markets has increased the number of such opportunities and we share the Portfolio Managers’ view that recent share price declines create an ideal environment for patient, long-term investors such as your Company to position their portfolios for recovery. My fellow board members and I welcome the Portfolio Managers’ efforts to this end, and we remain confident that their approach, backed by the deep research resources of J.P. Morgan Asset Management, will continue to uncover interesting opportunities and provide shareholders with consistent, attractive returns, and a competitive income, as India realises its significant long-term potential.
We thank you for your ongoing support.
Jeremy Whitley
Chairman