**Summary of JPMorgan European Discovery Trust PLC Half-Year Financial Report (Ended 30 September 2025)**
**Key Highlights**
1. **Strong Performance**
**NAV Total Return** +20.7% (outperforming the MSCI Europe ex-UK Small Cap Index benchmark by +5.3%).
**Share Price Return** +21.0% (outperforming the benchmark by +5.6%).
Long-term outperformanceOver 3, 5, and 10 years, share price returns exceeded the benchmark, with a 10-year annualised NAV return of +10.3% vs. benchmark’s +10.1%.
2. **Dividends and Share Repurchases**
Interim dividend declared3.0 pence per share.
Repurchased 17573909 shares during the periodwith an additional 577173 shares bought back post-period.
3. **Portfolio Strategy**
Focus on "hidden gems" in European small and mid-cap companies with long-term growth potential.
Top contributors: Industrials (e.g.SpieBilfinger) and Financials (banksasset managers).
DetractorsInformation Technology (e.g., Reply), Health Care, and Communication Services (e.g., Ipsos).
4. **Macroeconomic Context**
Volatility driven by US tariffsinterest rate adjustmentsand geopolitical tensions (e.g.Russia-Ukraine conflict).
European small caps benefited from domestic revenues, infrastructure spending, and AI adoption.
5. **Financial Metrics**
Net revenue return15.60 pence per share (up from 10.72 pence in 2024).
Revenue reserves£27.57 million.
Discount to NAV narrowed to 7.1% (from 7.3% in 2024).
6. **Management Fee Reduction**
Tiered fee structure introduced0.70% on first £300 million of net assets, 0.65% thereafter (down from flat 0.75%).
7. **Board and ESG Updates**
Chairman Marc van Gelder to retire in July 2026
succession planning underway.
ESG integration emphasized in investment decisions, with ongoing dialogue with the Manager.
8. **Outlook**
Optimism for European small and mid-caps due to lower interest rates, infrastructure spending, and AI-driven productivity gains.
Attractive valuations and potential for M&A activity in the sector.
**Conclusion**
JPMorgan European Discovery Trust delivered robust half-year results, outperforming its benchmark and maintaining a strong long-term track record. The trust remains well-positioned to capitalize on European small-cap opportunities, supported by strategic portfolio adjustments and favorable macroeconomic trends.