13th Dec 2022 09:55
(Alliance News) - JPMorgan European Discovery Trust PLC on Tuesday reported a half-year net asset value fall amid high inflation and market volatility in Europe during the ongoing war in Ukraine.
The investment firm said NAV per share at September 30 fell 19% to 425.6 pence each from 526.1 at March 31. NAV total return in the six months to September 30 was negative 18%, outperforming its benchmark, the MSCI Europe ex UK Small Cap Index, which returned negative 19%.
In the half-year to September 30, the company turned to a pretax loss of GBP148.6 million from a profit of GBP114.3 million a year prior. This was mainly due to a loss on investments held at fair value of GBP164.8 million, swung from a profit of GBP105.8 million a year earlier.
The company maintained an interim dividend of 1.20p per share.
Looking ahead, the firm noted geopolitical tensions, market volatility, and inflation amid Russia's war in Ukraine, which increased gas prices.
Chair Marc van Gelder said: "It seems probable that equity markets will continue to struggle until higher interest rates appear to be working and bringing inflation under control. Nonetheless, European equities continue to trade at a discount to global peers, providing attractive investment opportunities for our portfolio managers. It is likely that the macroeconomic environment may remain uncertain over the coming months, however, the portfolio managers' approach to dealing with an uncertain economic and geo-political environment should continue to serve shareholders well."
JPMorgan European Discovery Trust shares were 0.1% lower at 394.66p each on Tuesday morning in London.
By Tom Budszus, Alliance News reporter
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