23rd Jun 2026 09:54
(Alliance News) - JPMorgan European Growth & Income PLC on Tuesday said the short-term investment environment is expected to "remain unsettled" as it outperformed its benchmark in its latest financial year.
The London-based investment fund reported a net asset value total return of 20.1% in the financial year ended March 31, while its benchmark, the MSCI Europe ex UK, returned 14.8% over the same period.
NAV per share at March 31 was 135.2 pence, up 15% from 118.1p a year earlier.
The investment trust attributed its ourtperformance to its stock selection, as it noted that its investment managers "has continued to navigate European markets with skill".
JPMorgan European Growth & Income said the backdrop for European equities for much of the reporting period was "supportive", as inflation continued moderating, monetary policy became less restrictive and investor sentiment towards Europe improved with increased flows.
However, the investment trust noted that the final weeks of the financial year were "more challenging", as the conflict between the US, Israel and Iran contributed to increased energy prices and volatility.
The company reported total dividends of 5.0p for the financial year, up 4.2% from 4.8p the prior year. For financial 2027, as previously announced, it plans to pay dividends totaling 5.44p for the year, up 8.8%.
In late May, the investment trust announced it had inked heads of terms with European Opportunities Trust PLC regarding a transfer of certain cash, assets and its undertakings.
"The proposals are expected to grow our net assets, enhancing JEGI's position as a leading investment vehicle for European equity investing that delivers an attractive dividend yield. The expected scale of the enlarged JEGI should improve secondary market liquidity for shareholders, raise the profile of JEGI, and reduce the ongoing charges ratio," said JPMorgan European Growth & Income on Tuesday.
A timetable including details of the implementation of the deal is expected this month.
Shares in JPMorgan European Growth & Income were down 1.3% at 147.51 pence on Tuesday morning in London.
Looking ahead, Chair Rita Dhut said the near-term investment environment is expected to "remain unsettled", noting the increased uncertainty around ongoing conflicts in the Middle East and Europe, as well as US trade policy.
"Notwithstanding these risks, there is some optimism. Inflation in the Eurozone remains close to the European Central Bank's target with a supportive policy backdrop. Germany has announced a EUR500 billion infrastructure programme and the structural uplift in European defence spending underline a meaningful shift in the region's investment outlook."
By Christopher Ward, Alliance News reporter
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