LONDON - JPMorgan (NYSE:JPM) European Growth & Income PLC has announced its half-year financial performance for the six months ending September 30, 2024. The investment trust reported a total return on net assets with debt at fair value of -1.3%, which underperformed its benchmark return of -0.4%. Shareholders saw a return of -1.1% in the same period.
Despite the underperformance in the short term, the trust has shown strong longer-term results. Over a three-year period ending September 30, 2024, the net asset value (NAV) total return was +29.1%, outperforming the benchmark's return of +18.8%. For the five-year period, the NAV total return was +64.2% versus the benchmark return of 42.9%, with shareholders experiencing a return of +69.7%.
The dividend for the six months to September 30 was announced at 2.40p per share, translating to an estimated dividend yield of 4.8%, based on the expected annual dividends and the share price as of the end of the reporting period.
As of September 30, 2024, the company's top three overweight sectors were Financials, Communication Services, and Industrials. The Chair's Statement acknowledged marginal underperformance against the benchmark amid challenging conditions characterized by slowing growth expectations and geopolitical uncertainties. However, the Board expressed confidence in the robustness and effective implementation of the company's strategy.
The Investment Managers' Report highlighted that European companies slightly exceeded earnings expectations for the third quarter, which is seen as encouraging. The report also noted concerns about potential economic impacts from political developments, such as elections in Germany and the possibility of tariffs by the next US administration.
The report detailed market conditions and portfolio adjustments, including increased positions in Financials and reduced exposure in consumer stocks and sectors sensitive to China's economic performance. The outlook remains cautious, with attention on the balance between economic growth and inflation, and potential geopolitical events that could affect market stability.
This information is based on a press release statement from JPMorgan European Growth & Income PLC.
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