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JPMorgan European Discovery Trust PLC on Friday expressed optimism around the prospects for European small caps, as it outperformed its benchmark in its latest financial year, with performance buoyed by Germany’s fiscal stimulus package. The trust invests in capital growth in smaller companies in continental Europe. JPMorgan European Discovery reported a NAV total return of 23.2% for the financial year that ended March 31, while its benchmark, the MSCI Europe (ex UK) Small Cap Net Total Return Index in sterling terms, returned 17.5% over the same period NAV per share grew 21% to 632.1p at March 31 from 524.0p a year earlier. The investment trust said the main driver of European gains was Germany’s ‘very significant fiscal stimulus package’, which it noted included plans to increase defence spending in response to concerns around the US’s commitment to NATO. ‘Other European allies followed the lead by committing to multi-year increases in military spending. European smaller cap stocks outperformed, as their domestic focus meant they benefited most from higher government spending and infrastructure investment,’ said Chair Marc van Gelder. JPMorgan European Discovery declared a final dividend of 13.0 pence per share, up 30% from 10.0 pence a year prior. This brings the total dividend to 16.0p, up 23% from 13.0p. Shares in the investment trust were up 0.1% at 659.70 pence on Friday morning in London Looking ahead, Portfolio Managers Jon Ingram, Jack Featherby and Jules Bloch said: ‘We remain highly optimistic about the prospects for European small caps. We believe the asset class is overdue a resurgence as Europe enters a new phase of investment and growth. Smaller cap companies are uniquely positioned to benefit from the major investment themes playing out in European markets, as a result of their strong domestic focus and agility in adapting to changing market conditions.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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