11th Dec 2020 11:01
(Alliance News) - JPMorgan European Smaller Companies Trust PLC on Friday said it outperformed its benchmark in the first half of its financial year thanks to a strong portfolio in technology, wellness and environment sectors.
The investment trust which focuses on smaller European companies reported a net asset per share at September 30 of 477.6 pence, up 14% from 418.5p a year prior.
JPMorgan European Smaller Companies said it recorded a total return on net assets of 49% for the six months ended September 30, outperforming the company's benchmark index, the MSCI Europe small cap net total return index in sterling terms, which returned 35% over the same period.
"This outperformance was almost entirely a result of positive stock selection, which is a credit to our investment managers, whose strategy of focusing on technology, wellness and environmental themes is paying off," the investor said.
Net return before tax was up to GBP252.6 million from GBP39.8 million a year before.
Gross return increased to GBP256.1 million from GBP43.4 million a year prior.
JPMorgan European Smaller Companies maintained its interim dividend at 1.2p per share.
Going forward, Chair Marc van Gelder said: "In the short term, it is likely that the Covid-19 pandemic will continue to weigh on business activity in Europe, and with it on the fortunes of the smaller company sector in which we invest. What impact the recent approval of various vaccines and their future roll out will have on economies is difficult to predict given the lack of historical precedence. However, they do sign post finally a path towards a return to normalcy. Your company's portfolio has a significant exposure to industries and companies that are positioned for such a recovery."
JPMorgan European Smaller Companies Trust shares were down 0.2% at 468.00p each in London on Friday morning.
By Greg Roxburgh; [email protected]
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