JPMorgan European Income 09 October 2019
Disclaimer
Disclosure – Independent Investment Research
This is independent research issued by Kepler Partners LLP. The analyst who has prepared this research is not aware of Kepler Partners LLP having a relationship with the company covered in this research report and/or a conflict of interest which is likely to impair the objectivity of the research and this report should accordingly be viewed as independent.
The JPMorgan European Investment Trust Income (JETI) offers a highly diversified portfolio of European equities, boasting the highest yield for investors in the AIC Europe sector, at 4.2%.
The trust is managed by a team of four managers – Stephen Macklow-Smith, Alexander Fitzalan Howard , Michael Baraos and Thomas Buckingham – who look for long-term winners with attractive yields. This involves looking at balance sheets, cashflow, dividend cover and in particular positive earnings revisions which in the managers' view are a key catalyst for performance.
The trust has a decent long-term track record as we discuss in the performance tab, although they have struggled to outperform peers in recent times. This has largely been due to the value orientated style the team have, along with their high exposure to cyclical stocks. With this said, the team has continued to deliver strong dividends, and the company’s capacity to switch its capital reserves for the revenue reserves of the growth share class should help maintain the dividend.
JETI currently stands on a discount of 11.3%, the third widest in the AIC Europe sector.
Fund History
