4th Dec 2019 12:20
(Alliance News) - JPMorgan European Smaller Cos Trust PLC said Wednesday it "slightly" underperformed against its benchmark in the first half of its financial year, due to challenging equity market conditions.
For the six months to September 30, the continental European companies investor reported a net asset value total return of 6%, compared to its Euromoney Smaller Companies (ex UK) index, which made a total return of 6.3%.
The company said although a 6% return is a positive result in challenging equity market conditions, it is "a little disappointing" when compared to its benchmark.
Net asset value per share for the first half decreased to 418.5 pence, from 460.7 pence in the comparative period a year ago.
JPMorgan European Smaller Cos shares were up 1.6% in London at 366.79 pence each on Wednesday.
Meanwhile gross revenue return slipped to GBP13.8 million from GBP13.9 million.
The company will pay an interim dividend of 1.2 pence, unchanged from the year before.
With effect from April 1, 2020, the company will change its benchmark from the Euromoney Smaller European Companies (ex UK) total return index to the MSCI Europe ex UK small cap net total return index. The company said the new index better reflects the underlying portfolio constituency.
"The prospects for European equity markets remain unpredictable given the continuing global political uncertainty," the company said.
"Despite this background our investment managers continue to believe that the long-term growth outlook for European companies remains positive," JPMorgan European Smaller Cos said.
By Loreta Juodagalvyte; [email protected]
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