JPMorgan Smaller Companies Investment Trust plc announced that it has a highly flexible borrowing facility of £25 million in place with Scotiabank which expired on 4th October 2019 and was then renewed with Scotiabank for a further year. Under the terms of the agreement, the Company has the option to increase the facility commitment amount to £35.0 million in two increments of £5.0 million subject to certain conditions. In January 2020, the Board increased the amount drawn down on the facility to £30.0 million, therefore taking advantage of the accordion facility in place. Given the increase in the net asset value of the company, this gave the managers sufficient additional funding to continue to adjust the gearing tactically within the guidelines. During a period of low interest rates, the use of gearing is an attractive way of amplifying the effect of rising markets, but inevitably increases the risk of loss if markets fall and volatility. The Company has maintained a fairly constant level of gearing, with the Board giving the Investment Managers flexibility to adjust the gearing tactically within guidelines. During the reporting period, the Company's gearing ranged from 6.1% to 10.2%, ending the half year at 9.8% geared. As at 24th March 2020 the Company's gearing had been reduced to 4.1%, with total borrowings of £30.0 million.

The company announced to appoint a successor to the Audit Committee Chairman, Andrew Robson, who will retire from the Board at the AGM in 2020. The Board has commenced the search for a suitable candidate.