JPMorgan European Discovery Trust Plc (LON:JEDT) published its latest factsheet for September 2025.
Month in review
As of 30/09/2025
- The trust outperformed the benchmark over the month.
- At a sector level, positive contributors to relative returns included stock selection in construction & materials and oil, gas & coal. On the other hand, detractors included stock selection in aerospace & defence and technology hardware & equipment.
- At a stock level, an overweight position in Tecnicas Reunidas, an engineering and construction company in the oil & gas sector, contributed to performance over the month given a strong demand outlook and an increase in services contracts which will support earnings. The company also recently increased guidance.
- An overweight position in Puuilo, the Finnish discount retailer, contributed to performance over the month given the release of strong results that supported management in increasing their medium-term guidance.
- An underweight position in RENK, a drivetrain components provider involved in defence applications, detracted from performance over the month as defence-exposed names performed strongly.
- An overweight position in Cairn Homes, the Irish housebuilder, detracted from performance over the month due to profit taking. We believe that operational performance remains strong.
Looking ahead
As of 30/09/2025
- 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.
- The Eurozone’s inflation rate aligns with ECB targets, but ongoing US trade policy concerns and new tariffs may weigh on business confidence and growth prospects.
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.
