JPMorgan European Discovery Trust plc (LON:JEDT) has announced its October commentary.
Monthly as of 2025/10/31
- The Trust outperformed the benchmark over October.
- Positive contributors to relative returns included stock selection in aerospace & defence and electronic & electrical equipment.
- Detractors included stock selection and an overweight position in travel & leisure and stock selection in pharmaceuticals & biotechnology.
- At a stock level, our overweight position in Tecnicas Reunidas, a Spanish engineering and construction company in the oil and gas sector, contributed to performance over the month. The stock continues to perform well, supported by strong ongoing project execution driven by its power division.
- Our overweight position in Kitron, the industrial electronics manufacturer, also contributed to performance given the announcement of a large defence order and strong third-quarter results.
- Our overweight position in Do & Co, the airline catering business, detracted from performance due to profit taking following a period of strong performance.
- Our overweight position in Vossloh, a rail infrastructure company, also detracted from performance due to profit taking following a period of strong performance.
Looking Ahead as of 2025/10/31
- The rise in military expenditures across Europe, along with substantial financial backing in Germany, is expected to enhance economic growth in the euro area during 2025 and 2026.
- Additional factors contributing to this growth include inflation stabilising around the 2% target and the European Central Bank’s interest rate reduction.
- Moving forward, the focus remains on selecting companies with attractive valuations, strong operational momentum and effective capital allocation strategies that we believe could outperform in this cycle.
JPMorgan European Discovery Trust plc 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.
