7 Dec 2020 13:18
JPMORGAN EUROPEAN INVESTMENT TRUST PLC
Enhancements to the Income Portfolio's Investment
Process & Portfolio Impact
Legal Entity Identifier: 549300D8SPJFHBDGXS5
The Board of JPMorgan European Investment Trust plc (the "Company") is pleased to announce an update to the investment process for the Company's Income share class in an effort to drive an improvement in performance for shareholders, going forward.
The Manager's review of the investment process and its recommended enhancements were presented to, and have now been approved, by the Board.
These changes should be considered as an evolution of the investment process and, as such, will not result in a restructure of the Income portfolio. The impact of these changes will become more visible over time but will include the following:
· An increased focus on capital growth alongside dividend yield consistent with the
Company's investment objective (which remains unchanged)
· Greater flexibility to hold stocks which move below the current dividend threshold of the
top 30% of the market by yield
· Increased active weights vs. the benchmark to demonstrate higher conviction in
companies which are attractive across both income and capital growth dimensions
· Decrease in turnover and transaction costs both of which can be detrimental to returns
Commenting on the above changes Josephine Dixon, the Chairman of the Board, said:
"Since the lows experienced in mid-March 2020 and, in particular, the vaccine announcements in early November, the Company's Income shares have recouped a meaningful proportion of the losses experienced at the onset of the Covid-19 pandemic. The Board and Manager are encouraged by the market performance since the beginning of November and believe that the market back drop will be supportive of a continued recovery in performance. However, the Board recognise that the difficult economic conditions will continue to put pressure on companies as they determine their dividend policies going forward. Accordingly the Manager has undertaken a thorough analysis of its investment process to ensure it is fit for this environment.
Whilst the Manager has found the environment challenging, particularly since the onset of the Covid-19 pandemic, they believe that these changes will be successful in providing support for stronger returns for the Income share class and its shareholders going forward."
For and on behalf of
JPMorgan Funds Limited, Secretary
7th December 2020
For further information:
Paul Winship 020 7742 4000