27th Sep 2019 18:18
(Alliance News) - Jupiter European Opportunities Trust PLC on Friday reported a rise in net assets over its most recent ended financial period, attributing to the coincidence of "good performance" from an "eclectic" group of portfolio holdings.
At May 31, Jupiter European Opportunities NAV per share stood at 822.23 pence compared to 778.94p at the same point a year earlier, a 5.6% rise.
The trust declared a final dividend of 5.5p, giving a total dividend for the full year of 6.5p.
The trust's NAV total return during the twelve month period was 6.4% compared to a 1.8% gain from its benchmark - the FTSE World Europe ex UK Total Return Index.
The trust's investment manager Alexander Darwall said: "The relative success of the portfolio was due to a coincidence of good performance from an eclectic group of stocks. The 'winners' have not made any significant acquisitions; the industries in which they operate enjoy structures which are conducive to pricing discipline; they are 'capital light' business models and have not raised fresh capital.
"In terms of attribution, the best performers, Experian, RELX and Edenred are good examples of companies which have these characteristics. Further, these companies are beneficiaries of two other developments.
"The first is the exploitation of digital technologies which can reduce cost, increase flexibility and further the reach of the services offered by Experian, RELX and Edenred. The second is ever tougher regulatory requirements which is in turn driving greater demand for these services.
Looking ahead, Chair Andrew Sutch said: "There are some worrying headwinds affecting the global economy: slower economic growth, a possible recession in Germany, US-China trade disputes, geo-political developments involving oil producing countries, Brexit and so on. The companies in the portfolio are unlikely to be immune from the consequences of these headwinds."
At the company's upcoming annual general meeting, in November, there will be a resolution put to shareholders that the trust's name be changed to European Opportunities Trust PLC.
Shares in Jupiter European Opportunities closed down 0.2% in London on Friday at 832.00 pence each.
By Paul McGowan; [email protected]
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