3rd Jun 2024 11:07
(Alliance News) - JPMorgan European Growth & Income PLC on Monday said that, whilst the fund outperformed its benchmark in the recent financial year, there is significant uncertainty in the market that could hurt results going forward.
The London-based investment fund said net asset value rose 14% to 119.00 pence per share on March 31, the end of its 2024 financial year, from 104.80p a year before.
With debt at fair value, the total return on net assets was 17%, outperforming the investment fund's benchmark, the MSCI Europe ex UK Total Return index, which delivered a 13% return over the same period.
Dividend per share was increased 5.0% to 4.20p each from 4.00p.
The fund said performance was the result of positive stock selection, with Danish obesity drug maker Novo Nordisk AS standing out in particular among other holdings in the portfolio.
Looking ahead, the fund believes the merits of European stocks are yet to be realised, although management recognised that future returns are dependent on steady economic growth alongside a decline in interest rates across Europe.
Chair Rita Dhut said: "Despite the backdrop of geopolitical conflicts and uncertainty over the trajectory of inflation, the eurozone has remained relatively resilient. For the first quarter of 2024 economic growth in the eurozone was higher than expected,
"With an unprecedented number of elections around the world this year, the near term could hold significant regime change. Throw in the emergence of generative artificial intelligence impacting corporate business models and there is a lot to be mindful of."
JPMorgan European G&I shares were up 2.3% to 108.90 pence each in London on Monday morning.
By Elijah Dale, Alliance News reporter
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