JPMorgan European Discovery Trust outperforms in volatile H1

(Sharecast News) - JPMorgan European Discovery Trust outperformed the wider market over the six months to 30 September, as the investment trust expressed confidence about the prospects for small and mid-caps across the continent. The company, which says it is focused on "young, dynamic businesses at the heart of global innovation", reported a total return on net asset value per share of 20.7% during the period, compared with the MSCI Europe (ex UK) Small Cap Index which rose 15.4%, marking an outperformance of 5.3 percentage points.

Its share price over the half year gained 21%, outperforming the benchmark by 5.6pp.

Over the past three, five and ten years, JEDT's NAV/share performance compared with the benchmark has clocked in at 7.2pp, -3.3pp and 6.0pp on a cumulative returns basis, respectively.

The firm declared an interim dividend of 3.0p per share, unchanged from last year.

As of 31 October, JEDT's top allocations were in the capital goods sector, which accounted for 20.3% of the fund, along with commercial and professional services (7.6%), energy (7.4%), banking (5.7%), insurance and consumer services (both 5.6%).

Portfolio managers Jon Ingram, Jack Featherby and Jules Bloch said the six months to 30 September has "tested the resilience of markets and investors alike, with volatility driven by rapidly evolving trade policies, interest rate adjustments, and political uncertainty".

However, they added: "Against this backdrop, 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."