JPMorgan European Discovery Trust plc (LON:JEDT) has released its latest factsheet for February 2026.
Month in review as of 28/02/2026
- The trust outperformed the benchmark over February.
- At the stock level, our overweight position in Kitron, a leading electronic manufacturing services (EMS) provider, contributed to performance following the release of strong fourth-quarter results and increased guidance for 2026.
- An overweight position in Koninklijke Heijmans, a Netherlands-based construction and engineering company, also contributed to performance over the period. The company reported strong financial results, which were better than expectations, with significant growth in the order book. Strong residential and property development segments were key drivers of performance.
- Our overweight position in Bechtle, a leading IT services provider, detracted from performance given the cautious outlook provided by management alongside fourth-quarter results. Management noted a tough macroeconomic environment and potential disruptions from price increases by manufacturers, as well as potential supply constraints.
- Our overweight position in Per Aarsleff, a leading construction company, also detracted from performance as the release of first-quarter results missed expectations on earnings. The earnings profile for the year is anticipated to be back-end loaded as the coldest winter in Denmark since 2010 adds some uncertainty to the company’s near-term outlook.
Looking ahead as of 28/02/2026
- European equity flows are likely to persist as fiscal policy shifts from austerity to expansion, with substantial programs and fiscal headroom supporting ongoing domestic demand.
- Europe has been and should continue to be a beneficiary of monetary stimulus. The eurozone is still an economy sensitive to short-term interest rates, and past rate cuts continue to support credit growth.
- Valuations remain compelling, as Europe trades at a notable discount to the US on a relative basis, especially in small and mid-caps.
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.
