|
JPMorgan European Discovery Trust PLC on Monday said valuations in European companies ‘remain very attractive’ as it outperformed its benchmark. The trust invests for capital growth in smaller companies in continental Europe. Net asset value per share rose 19% to 622.2 pence as at September 30 from 524.0p at March 31. NAV total return was 20.7% in the six months to September 30, beating its benchmark, the MSCI Europe excluding UK Small Cap index, which had a total return of 15.4%. The company maintained an interim dividend of 3.0p per share. JPMorgan European said its overweight positions in industrials and financials were the largest positive contributors to returns, highlighting industrial holdings benefiting from renewed domestic investment and stimulus measures, such as engineering companies Spie and Bilfinger SE. On the other side, information technology, health care, and communication services were the largest detractors. ‘These sectors faced headwinds from global trends, including the disruptive impact of artificial intelligence on legacy business models and the weakening US dollar,’ the company said. Chair Marc van Gelder said: ‘Despite the recent re-rating of European smaller caps, valuations in this part of the market remain very attractive in relative as well as absolute terms versus European large caps, the US and other global markets. So there is significant scope for further market gains. International investors are already showing increased interest in European equities, including via merger & acquisition activity. This trend is set to continue, with European smaller companies likely to be the target of many of these deals.’ Portfolio Managers Jon Ingram, Jack Featherby, and Jules Bloch said: ‘Our focus remains steadfast: to identify and invest in Europe’s ’hidden gems’ - companies with positive fundamentals and long-term growth potential that are often overlooked by the broader market. We believe this approach positions us to navigate volatility and deliver strong results for our shareholders.’ JPMorgan European shares fell 1.5% to 573.23 pence each on Monday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
