JPMorgan European Discovery Trust - A balanced trust targeting a world-beating market

JPMorgan European Discovery Trust (JEDT) invests in European small-cap companies (excluding UK), with the aim of providing shareholders with long term capital growth. The investment case for this sector is clear and simple. European small caps have outperformed most other markets over the long term. JEDT’s disappointing performance during H122 prompted its managers to rotate out of high-growth IT software and medtech stocks, in favour of a more balanced approach focused on quality and value name

JPMorgan European Discovery

JEDT offers core European smaller companies exposure with an adaptable and flexible investment approach, possibly suited to a changing investment landscape…

JPMorgan European Discovery Trust - Becoming more stylistically balanced

JPMorgan European Discovery Trust (JEDT) specialises in continental European small and mid-caps. The strength of the strategy is that while it is actively managed, it is also stylistically more balanced than many funds in the sector and of late there has been a nuanced move to more ‘core’ and ‘value’ holdings and a reduction in ‘growth’ stocks. Performance over the year to the end of June 2022 was weaker than the index, but slightly ahead of the AIC European smaller companies peer group. This wa

JPMorgan European Discovery

JPMorgan European Discovery (JEDT) offers investors a portfolio of high-quality European small- and mid-cap equities. JEDT’s managers, Francesco Conte and Edward Greaves, have created a portfolio which not only demonstrates better quality metrics but also superior valuations and earnings momentum than the wider market. All three aspects are important outcomes of the team’s investment process.

JPMorgan European Discovery Trust - A core option within a niche market

JPMorgan European Discovery Trust (JEDT) aims to generate long-term capital growth from a portfolio of high-quality, reasonably valued, smaller European equities. The scale of opportunities in a relatively inefficient market gives active managers an excellent opportunity set for outperforming and delivering good long-term investor returns, and JEDT has a strong long-term investment track record but has been a little more challenged of late. The trust currently offers a 1.7% dividend yield.

What next for European equities?

Despite Europe’s popularity among holidaymakers, it appears that investors prefer sunnier shores. According to The Investment Association, UK investors were net sellers of European equities in 2018, 2019 and 2020. Historically low returns from European equity markets (compared to other regions) and low GDP growth seem to have soured investors’ moods. In this article we will examine the AIC Europe and AIC European Smaller Companies sectors over the last 12 months, to see whether this pessimism is

JPMorgan European Discovery - Overview

JPMorgan European Discovery Trust (JEDT) offers investors a portfolio of small- and mid-cap companies across developed Europe (excluding the UK), following a balanced process that can invest in both expensive growth and cheap recovery companies. JEDT has recently changed its name, and was known as JPMorgan European Smaller Companies Trust until June 2021. The new name is intended to better reflect the trust’s investment strategy and portfolio, as it can invest across the European small- and mid-

Eurovision 2021

Europe, despite its intention to put past crises to rest, may end up being a major economic flashpoint in 2021. With sudden developments in Italian politics, battles over vaccinations and bonds that guarantee a loss, investors may be forgiven for expecting the once benign region to be the next big source of volatility. Yet there is an equal argument for a European renaissance with pan-European stimulus, attractively valued equities and increasing demand for sustainable investing; the argument is

JPMorgan European Smaller Companies - Overview

JPMorgan European Smaller Companies Trust (JESC) offers investors a diversified portfolio of developed European (ex UK) smaller companies. JESC’s portfolio is constructed using a structured, bottom-up investment process. Managers Francesco Conte and Edward Greaves utilise a three-factor process when constructing JESC’s portfolio, aiming to balance value, momentum and quality factors (as we outline in the Portfolio section). The investment process is an adaptive one, with the managers willing to

Now that's what I call a discount!

The accelerant effect of a closing discount adds considerable appeal to investment trusts for many investors, boosting the impact of a rising net asset value (NAV) when it happens concurrently, and leaving the shareholder with what is a de facto ‘geared’ return. Identifying trusts which are trading in a discount to NAV which is likely to close is no mean feat, though, with more than 450 investment trusts to choose from – and typical discounts among conventional trusts around the 10% mark. Last w

JPMorgan European Smaller Companies - Overview

JPMorgan European Smaller Companies (JESC) aims to provide capital growth from a portfolio of smaller companies in developed Europe, excluding the UK. Francesco Conte and Edward Greaves run the £654m trust, searching for attractively valued, high-quality stocks with positive momentum which they believe can outperform the market. The managers believe that Europe offers a unique mix of companies, in particular a number which are disrupting industries with nimble business models. Three key themes

JPMorgan European Smaller Companies - Overview

JPMorgan European Smaller Companies (JESC) aims to provide capital growth from a portfolio of smaller companies in developed Europe, excluding the UK. The £700m trust (in net asset terms), is managed by Francesco Conte and Edward Greaves who have a unique approach to narrowing down their 1000+ universe of companies, using a combination of qualitative and quantitative methods. The managers’ analysis helps them recognise and compare three key characteristics for new investment ideas: quality, mo

Nothing compares to EU

As with most people, we are sick of discussing Brexit’s endless possible scenarios and how it might impact equity markets. The outlook is forever shifting, the large majority of “information” being pure conjecture. Nevertheless, the political and economic backdrop means that Europe is now one of the most out of favour investment regions. In the open ended IA sector, Q3 and Q4 of last year saw total outflows of -£1.6bn in Europe, relative to the US and Global sectors which saw inflows of £289m an

JPMorgan European Smaller Companies - Overview

JPMorgan European Smaller Companies (JESC) aims to provide capital growth from a diversified portfolio of smaller companies in developed Europe, excluding the UK. The £667m trust (in net asset terms), is managed by Francesco Conte and Edward Greaves and utilises a high-conviction, bottom up, stock picking approach. The team focus on three key characteristics when conducting fundamental analysis on new investment ideas; quality, momentum and value. Companies they select do not need to score well

Morning Note – 22 April 2024

Benefits of scale set to materialise

Frenkel Topping - Resilient with strong growth potential

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LSL Property Services (LSL LN) - Transformation & market recovery

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Foresight Solar Fund - Termination of coverage

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International Public Partnerships - Consistently and responsibly delivering

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LIBERUM: PensionBee: Strong start to the new financial year

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Witan

Business as usual for WTAN’s executive team, while the board reviews investment management arrangements…

LIBERUM: Speedy Hire: Weakness in FY 24 but recovery in FY 25

Hybridan Small Cap Feast - 22 April 2024

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Foxtons Group (FOXT LN) - 1Q24 IMS shows real momentum

Foxtons Group plc first quarter revenue rose 9% to £35.7m (1Q23: £32.9m) with growth delivered across all business segments. Trading is in line with management's expectations.