15th Sep 2015 17:14
LONDON (Alliance News) - Jupiter European Opportunities Trust PLC on Tuesday said its net asset value per share rose by 21.1% to 546.27 pence during the year to May 31, exceeding gains by its benchmark, the FTSE World Europe Ex-UK Index, which returned 4.7%.
"The investing environment and your company are subject to the usual macro and cyclical challenges. After the good equity markets of recent years - at time of writing, the Europe ex UK index is up 73% in sterling from its low in 2011 - and the better performance of your company, it would not be unreasonable to anticipate some setbacks. Nevertheless, patient investors have been rewarded for sticking with a successful investment strategy. One of the great advantages of investment trusts is that we can take advantage of lower share prices by gearing the fund," Chairman Hugh Priestley said in a statement.
"At the period end the gearing level was low. In the past the Board has increased gearing in weak markets and decreased gearing on higher valuations, although it must be admitted that gearing was too high at the time of the 2008 credit crisis. Still, this approach has added value over the years; we continue to use gearing as a tactical tool to improve returns. There is no need to change the investing style of your company and you can expect an eclectic collection of companies which have strong business characteristics and which, in the opinion of your manager, can benefit from structural trends," Hugh Priestley added.
Shares in the trust closed up 1.0% at 543.50 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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