**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.
| Metric | 30th September 2025 | 30th September 2024 | 31st March 2025 | Change (2025 vs 2024) |
|---|---|---|---|---|
| Net Asset Value (NAV) | £586,705,000 | £610,864,000 | £586,250,000 | -3.96% |
| Net Return After Taxation | £100,986,000 | -£10,750,000 | £6,543,000 | +1,039.22% |
| Revenue Return | £15,303,000 | £15,041,000 | £15,892,000 | +1.74% |
| Capital Return | £85,683,000 | -£25,791,000 | -£9,349,000 | +432.23% |
| Dividends Paid | £9,541,000 | £11,383,000 | £14,895,000 | -16.18% |
| Net Debt | -£32,485,000 | -£34,880,000 | -£34,880,000 | +6.87% |
| Net Asset Value per Share (pence) | 622.2 | 509.9 | 524.0 | +22.03% |
| Total Investments (Fair Value) | £621,473,000 | £639,330,000 | £616,535,000 | -2.79% |
| Cash and Cash Equivalents | £28,611,000 | £24,375,000 | £23,701,000 | +17.38% |