Both JPMorgan European’s portfolios beat the index
Over the 12 month period under review, the company’s benchmark index, the MSCI Europe ex UK Index in sterling returned 3.0% (total return)
JPMorgan European Growth (JETG)
The NAV of JETG rose by 7.3% (total return) over the reporting period. The share price rose by 6.6% on the same basis. The discount widened, reflecting investors’ current preference for income. The dividend paid by JETG was in line with that received by the portfolio and was 6.85p (2017: 6.85p). This represents a yield of 2.9% (2017: 2.4%).
JPMorgan European Income (JETI)
The NAV of JETI rose by 6.4% (total return) over the reporting period. The share price rose by 8.4% on the same basis. The discount narrowed, reflecting investors’ current preference for income. The dividend paid by JETI was 5.80p (2017: 5.00p). This represents a yield of 4.2% (2017: 3.9%).
Revenue per share on the JETI portfolio for the year was 6.65p (2017: 5.94p per share).
Both portfolios benefited from the same themes. Positive contributions came from technology and cyclical sectors.
Outlook from the fund managers
“As we look into 2018 and further we believe that the picture remains encouraging for European equities. There is another year of growth in earnings in prospect, and to our mind valuation is still attractive, especially relative to bonds and cash, where yields remain extremely low. Furthermore, despite the growth in earnings last year, the valuation of the market actually fell slightly, so there is room for valuations to rise as the cycle matures, and we expect that our disciplined approach to investing in both the Growth and the Income share classes will continue to repay the faith of our investors.”
JETG, JETI : Both JPMorgan European’s portfolios beat the index