JPMorgan European Discovery Trust plc (JEDT) invests in European small-cap companies (excluding UK), with the aim of providing shareholders with long term capital growth. The investment case for this sector is clear and simple. European small caps have outperformed most other markets over the long term. JEDT’s disappointing performance during H122 prompted its managers to rotate out of high-growth IT software and medtech stocks, in favour of a more balanced approach focused on quality and value names. Many of these acquisitions are now contributing to returns.
The analyst’s view
- Potential investors may be attracted to the European small-cap sector by its long-term track record of outperformance versus most other major markets.
- JEDT offers investors diversified access to this world-beating market. The trust’s long-term performance track record attests to the managers’ stock selection skills, and potential investors may like its recent, more balanced investment approach, which offers the potential to deliver steady returns, relatively immune to stylistic turbulence.
JPMorgan European Discovery Trust plc (LON:JEDT) is an investment trust company. The Investment Trust JEDT objective is to achieve capital growth from a portfolio of quoted smaller companies in Europe, excluding the United Kingdom.
