JPMORGAN AMERICAN INVESTMENT TRUST PLC
HALF YEAR REPORT & FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30TH JUNE 2025
Highlights:
- NAV total return of -4.6% compared with-3.0% for the S&P 500 Index (in sterling terms) (the ‘Benchmark’). Share price return of -8.7%, reflecting a widening of the Company’s discount to NAV over the period.
- For the six years since the higher-conviction, best ideas approach was adopted in June 2019, the Company outperformed the benchmark index by +20.4, providing a NAV total return of +145.6%, compared with a benchmark return of +125.2%, an annualised outperformance of +1.6% over the six-year period.
- The Company is declaring a dividend of 2.75 pence per share (2024: 2.75 pence) for the first six months of this year, which will be payable on 6th October 2025 to shareholders on the register on 29th August 2025.
- During the reporting period, the Company repurchased a total of 3,403,340 shares, representing 1.9% of the Company’s issued share capital (excluding shares held in treasury) at an average discount of 3.1%. In the same period, the Company issued 1,414,046 shares from Treasury at an average premium to NAV of 0.8%.
The Chair, Robert Talbut, commented:
“The first six months of 2025 were marked by volatility in the US stock market, driven by geopolitical tensions and fluctuating economic indicators. Despite some initial optimism following the new US administration’s economic policy announcements, concerns over potential trade conflicts only added to market uncertainty, which peaked in early April. Despite these challenges, some companies managed to report positive earnings growth, which helped to lift markets back to near record levels at the end of the period.”
The Portfolio Managers, Felise Agranoff, Jack Caffrey, Eric Ghernati and Graham Spence, commented:
“The first half of 2025 was a rollercoaster for US markets, with significant ups and downs, driven by bouts of optimism and unexpected challenges. Despite these concerns, markets demonstrated resilience and reached new all-time highs by mid-year. “
“We are optimistic about the prospects for US equities for the rest of this year and beyond. Market expectations have improved in recent months, with investors no longer focused on worst-case scenarios.”
CHAIR’S STATEMENT
Performance
The first six months of 2025 were marked by volatility in the US stock market, driven by geopolitical tensions and fluctuating economic indicators. Despite some initial optimism following the new US administration’s economic policy announcements, concerns over potential trade conflicts only added to market uncertainty, which peaked in early April. The Federal Reserve’s cautious approach to interest rate adjustments given inflation remaining above target also weighed on market sentiment. Despite these challenges, some companies managed to report positive earnings growth, which helped to lift markets back to near record levels at the end of the period.
Against this backdrop, GBP returns for both the Company and the Company’s index were negative reflecting the impact of the US dollar’s weakest first half performance since 1973. The Company’s total return on net assets per share over the six months to end June 2025 was -4.6% in GBP terms, underperforming the -3.0% GBP total return on the Company’s benchmark, the S&P 500 Index, by -1.6 percentage points on a net asset value per share (‘NAV’) basis. The GBP return on share price was -8.7%, reflecting a widening of the Company’s discount to NAV over the period.
The large-cap component of the Company adopts a higher-conviction approach combining the best ideas from the Manager’s growth and value investment teams. In the six years since this approach was adopted in June 2019, the Company has outperformed the benchmark index by +20.4% in the subsequent 73 months through to the end of June 2025, providing a NAV total return to shareholders of +145.6%, compared with a benchmark return of +125.2%. This represents an annualised outperformance of +1.6 percentage points over the six-year period.
The Portfolio
At the end of the review period, 94.5% of your Company’s portfolio assets were invested in US large cap stocks, in a high conviction portfolio of 39 stocks. This represents a carefully curated selection of the Manager’s best growth and value investment ideas. The proportions of growth and value weightings can vary between 60% and 40% in either direction and stood at 56% in growth stocks and 44% in value names at the period end. The overall allocation to the small cap portfolio was 5.5% at the end of the review period.
More details about performance attribution and portfolio activity during the half-year can be found in the Investment Manager’s report below, along with their view on the outlook for US equity markets.
Investment Manager Succession
As previously reported, Jonathan Simon retired as the portfolio manager responsible for value stocks in the Company’s large cap portfolio on 3rd March 2025. The portfolio’s value stocks are now managed by Jack Caffrey and Graham Spence, while the growth stocks continue to be managed by Felise Agranoff and Eric Ghernati.
There are no changes to the Company’s investment process or investment objective as a result of these changes.
Share Price and Premium/Discount
The Company’s shares have traded at an average discount during the period under review of 2.0% relative to NAV. The Company has continued to both buy back and issue shares in line with the Board’s longstanding position of buying back shares when they stand at anything more than a small discount to NAV, and issuing shares when they are trading at a premium to NAV at least sufficient to cover the costs of issuance.
The Company bought into Treasury a total of 3,403,340 shares, or 1.9% of the Company’s issued share capital during the six months to end June 2025, excluding shares held in treasury (30th June 2024: 0.8%). These shares were purchased at an average discount to NAV of 3.1%, producing a modest accretion to the NAV for continuing shareholders. The Company issued a total of 1,414,046 shares from treasury during the same period, at an average premium to NAV of 0.8%.
Dividends
The Company is declaring a dividend of 2.75 pence per share (2024: 2.75 pence) for the first six months of this year, which will be payable on 6th October 2025 to shareholders on the register on 29th August 2025. While capital growth is the primary aim of the Company, the Board understands that dividend receipts can be an important element of shareholder returns. 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 is able to deploy gearing, which over time is expected to enhance performance provided that the cost of gearing is less than the performance delivered by the Company’s equity portfolio. The Board has set the current tactical level of gearing at 5% of net assets, with a permitted range around this level of plus or minus 5%, meaning that gearing can vary between 0% and 10%. During the period the Board decided to add additional gearing to the portfolio, drawing down US$40 million from the revolving credit facility. In total the tactical level of gearing of the Company increased from 2.8% at year-end 2024 to 4.9% at the end of June. The overall effect of gearing during the first half of the year was to add 50bp to the return of the Company’s portfolio.
The Board believes it is prudent for its gearing capacity to be funded from a mix of sources, including short- and longer-term tenors, and fixed and floating rate borrowings. The Company now has in place an £85 million revolving credit facility (with an additional £15 million accordion) with Industrial and Commercial Bank of China Limited, London Branch. This replaces the £80 million revolving credit facility (with an additional £20 million accordion) with Mizuho Bank Ltd that expired in early August 2025. It also has in issue a combined total of US$100 million unsecured loan notes issued via private placements, US$65 million of which are repayable in February 2031 and carry a fixed interest rate of 2.55% per annum. The remaining US$35 million of loan notes mature in October 2032 and carry a fixed interest rate of 2.32%.
Board
There have been no changes to the Board over the six-month review period. The Board continues to carefully manage its succession planning and remains committed to maintaining a diverse and experienced team to guide the Company’s strategic direction.
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Outlook
It is customary when commentating upon financial markets to state that the outlook remains uncertain. At present I would draw attention to the escalating number of conflicts around the world, to the fracturing of politics and the rise of more extreme parties in many countries, and to diminishing global cooperation being replaced by fiercer competition between countries. In short, it does appear that we really are in a period which is indeed very uncertain. However, North American companies and their management teams have a long track record of quickly adapting to whatever circumstances confront them, resulting in improved profitability and earnings per share. In addition, US businesses appear to adopt new technologies more quickly than others, driving efficiencies within companies and hence sharpening their competitive edge relative to their global competition. The Board has no reason to doubt that these dynamics will not continue to prevail. The Manager remains confident that it can still identify attractive investment opportunities throughout the North American market and this fact combined with the continued dynamism of US business gives the Board confidence that the Company should continue to provide opportunities for attractive returns over the medium term.