JPMorgan European Discovery Trust plc (LON:JEDT) has released its latest factsheet.
Month in review as of 31/01/2026
- The trust outperformed the benchmark over January.
- At the stock level, our overweight position in Danieli, one of the largest suppliers of plants and equipment to the metals industry, contributed to performance given continued strong order momentum.
- Our overweight position in Kitron, a leading electronic manufacturing services (EMS) provider also contributed to performance due to a positive defence exposure and outlook, as well as the closing of a notable acquisition.
- Our overweight position in Unipol, a leading Italian insurance company, detracted from performance due to general weakness across the insurance sector, as well as concerns over self-driving vehicles reducing demand for motor insurance over the longer-term.
- Our overweight position in Temenos, a banking software provider, also detracted from performance due to general negative sentiment towards software companies given the disruptive threat of AI.
Looking ahead as of 31/01/2026
- Europe has been and should continue to be a beneficiary of monetary stimulus. The eurozone is still an economy sensitive to short-term interest rates, and past rate cuts continue to support credit growth.
- Fiscal stimulus has also contributed to the strong performance of southern Europe, which has benefited significantly from the EU’s Recovery Fund.
