26th May 2015 16:03
LONDON (Alliance News) - JPMorgan European Smaller Companies Trust PLC Tuesday said it outperformed the benchmark index in its last financial year, even as it reported "flat" performance.
In a statement, the trust said its net asset value total return of 0.3% in the year ended March 31 was superior to the 0.1% of the Euromoney Smaller European Companies (ex UK) Index.
The trust's returns were due to "positive asset allocation, currency effects and the beneficial use of gearing".
"European economic activity is improving and our investment managers report that company profit forecasts are increasing and that valuations of European smaller companies offer good value but we need to remain vigilant as to how the expected rise in US interest rates may affect valuations of global equity markets," Chairman Carolan Dobson said in a statement.
Shares in the trust closed down 1.8% at 251.50 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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