(Alliance News) - JPMorgan European Discovery Trust on Thursday said its return on assets outperformed its benchmark as the investment firm continues to recover from the pandemic.
The investor in continental European companies that have a record of paying sustainable high dividends recorded a net return before taxation of GBP114.3 million in the half-year to September 30, decreased 54% from GBP252.6 million paid a year prior.
Gross return over the period totalled GBP118.5 million, down 54% from GBP256.2 million.
This is due to the continued global economic recovery, supply chain issues and "enormous" increases in energy prices, and increased input costs that are presenting challenges to European companies.
However, these pressures are expected to alleviate over time as supply constraints are resolved and economic growth slows back to trend, JPMorgan European said.
The trust's net assets grew 25% to GBP949.7 million from GBP761.5 million in the half-year period, compared to the one a year ago.
Net asset value per share amounted to 595.5 pence, improved 25% from 477.6p a year before.
The company also said that it recorded a total return on assets of 13.3% in the six months, outperforming its benchmark index.
JPMorgen European attributed this performance to its portfolio companies Eckert & Ziegler, Vitrolife and Reply that are benefiting from positive tailwinds in the healthcare and IT industry.
The trust declared an interim dividend of 1.2p, unchanged from last year.
The investor in European companies concluded by expressing concerns around the new Omicron variant and how it was going to disrupt markets.
"While it does appear that Covid will remain with us perhaps indefinitely, this risk should be mitigated by our continued focus on companies that have a combination of high returns on invested capital, strong cash flows, business models that are protected by economic moats and end markets that are likely to remain strong for the foreseeable future," Investment Managers Francesco Conte and Edward Greaves said.
Shares were up 1.1% at 160.71 pence each on Thursday in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
JPMorgan European Discovery Trust (JEDT)