Incorporated in 1990, JP Morgan European Discovery Trust Plc is an investment trust with an aim to deliver capital growth from a diversified portfolio of smaller European businesses, excluding the UK. In June 2021, the company changed its name to JP Morgan European Discovery Trust Plc from JP Morgan European Smaller Companies Trust Plc and changed London Stock Exchange stock ticker symbol to JEDT to JESC. The trust compares its portfolio performance with MSCI Europe small cap net total return index (excluding UK). Its portfolio invests across Software & Computer services, construction & materials, Media, Automobiles & parts, retailers, food producers, industrial engineering, banks, investment banking & brokerage services, Real Estate Investment & services and healthcare & services industries and invests across Italy, France, Sweden, Netherlands, Norway, Denmark, Austria, Switzerland, Finland, Span, Ireland, Portugal, Germany and Belgium. The trust has premium listing on the London Stock Exchange and is a constituent of the FTSE 250 Index.
The trust has appointed JP Morgan Funds Limited as its alternative investment funds manager, which in turn delegates portfolio management to JP Morgan Asset Management (UK) Limited. To diversify the risk and achieve its investment objective the trust has no limit on investments. However, the investment ranges between 56 and 66. The trust can’t invest over 5% of its total assets in any single individual asset at the time of acquisition.
Maximum 25% of assets may be invested outside the benchmark but such investments must be within Europe, excluding UK businesses or UK investment companies that too invest in Europe. The trust needs approval to invest in unquoted assets. The trust may invest maximum 255 of its assets in the aggregate of holdings in which it has 20% or more of the issued equities and securities not listed on a recognized exchange. However, it is unlikely that the trust would invest in businesses that fall into either of these categories. Further, no more than 15% of its gross assets should be invested in other UK-listed closed-ended investment funds that themselves invest over 15% of the gross assets in the UK listed closed-ended investment funds. The trust has set a normal gearing range of 20% net cash to 20% geared.
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