JPMorgan European Inves tment Trust plc AGM

JPMorgan European Investment Trust plc AGM

July 2020

Alexander Fitzalan Howard Portfolio Manager Stephen Macklow-Smith Portfolio Manager

Market outlook

1 FOR AGM USE ONLY | NOT FOR FURTHER PUBLIC DISTRIBUTION

Global Purchasing Managers' Index (PMI) for manufacturing

GTM ? Europe | 5

Global economy

Eurozone

2008

Global

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

'20 '20

May Jun

42,4 47,8

Developed

39,5 46,4

Emerging

45,4 49,6

Eurozone France

Germany Italy

Spain Greece Ireland Sweden Switzerland

UK US Japan

39,4 47,4 40,6 52,3 36,6 45,2 45,4 47,5 38,3 49,0 41,1 49,4 39,2 51,0 40,0 47,3 42,1 41,9 40,7 50,1 39,8 49,8 38,4 40,1

Developed

China

Indonesia

Emerging

Korea

Taiwan

India

Brazil

Mexico

Russia

Source: Markit, J.P. Morgan Asset Management. The Global Purchasing Managers' Index (PMI) for manufacturing assesses the economic health of the sector by

surveying manufacturing businesses regarding output, new orders, stocks of purchases, supplier delivery times and employment. A score of 50 indicates that

economic activity is neither expanding nor contracting, above 50 indicates expansion. The colours range from red to yellow to green, where red is below 50, yellow is

at 50 and green is above 50. Quarterly averages are shown, except the two most recent monthly data points. Past performance is not a reliable indicator of current

2

and future results. Guide to the Markets - Europe. Data as of 30 June 2020.

50,7 51,2 28,6 39,1 41,3 43,4 41,9 46,2 30,8 47,2 38,3 51,6 38,3 38,6 36,2 49,4

Growth shares

3 FOR AGM USE ONLY | NOT FOR FURTHER PUBLIC DISTRIBUTION

JPMorgan European Investment Trust ? Growth shares

Performance to 31 March 2020

Annualised performance, net of fees (%)

JETG NAV (cum income, debt at par value) JETG share price MSCI Europe ex UK (NET) Excess return (NAV)

Three months Six months

-20.7 -25.4 -17.5 -3.9

-19.5 -22.6 -16.7 -3.4

One year -13.3 -16.3 -8.3 -5.5

Three years -3.1 -6.4 -1.2 -1.9

Five years

2.5 -1.0 3.1 -0.5

Ten years

5.6 4.8 4.8 +0.8

Financial year performance, net of fees (%)

JETG NAV (cum income, debt at par value) JETG share price MSCI Europe ex UK (NET) Excess return (NAV)

2013 - 2014 2014 - 2015 2015 - 2016 2016 - 2017 2017 - 2018 2018 - 2019 2019 - 2020

23.1

7.9

-1.6

26.6

7.2

-2.3

-13.3

24.1

14.5

-8.8

27.1

7.6

-7.9

-16.3

17.0

7.0

-5.3

27.2

3.0

2.2

-8.3

+5.2

+0.8

+3.9

-0.5

+4.1

+4.4

-5.5

Source: J.P. Morgan Asset Management. Geometric excess returns. Performance data has been calculated on NAV to NAV basis, including ongoing charges and any applicable fees, with any income

reinvested, in GBP. JETG is the JPMorgan European Investment Trust ? Growth shares. Financial year is 1 April to 30 March the next calendar year. Past performance is not a reliable indicator for current or future results.

4

FOR AGM USE ONLY | NOT FOR FURTHER PUBLIC DISTRIBUTION

Performance attribution

JPM European Investment Trust - Growth Shares for 1 year ending 31 March 2020

Attribution summary Benchmark

Stock: -4.08 Sector: -1.59 MSCI Europe ex UK (total return) (?)

Sector attribution (%)

Stock selection Asset allocation

Top contributors Roche Holding

Relative weight (%)

1.30

Stock return (%)

26.17

Impact (%)

0.46

Food, Bev. & Tobacco (u) Banks (u)

Pharma. & Biotech. (u) Software & Services (o) Consumer Services (n)

0.41 0.34 0.12 0.08 0.06

Transportation (n) Consumer Durables (u)

Retailing (u) Materials (u) Capital Goods (o) -2.26

-0.40 -0.42 -0.46 -0.81

-3

-2 -1

0

1

2

3

Anheuser-Busch InBev TeamViewer Daimler Banco Santander

-1.12 0.33 -0.83 -0.97

-50.99

0.43

43.79

0.35

-48.10

0.31

-42.49

0.30

Top detractors

Actividades de Construccion y Servicios OMV Safran Peugeot Iberdrola

Relative weight (%)

1.13

1.03 -0.04 1.21 -1.07

Stock return (%)

-51.05

-45.05 -31.98 -41.17 27.93

Impact (%)

-0.66

-0.49 -0.41 -0.37 -0.30

Source: Factset. (o) = overweight, (u) = underweight, (n) = neutral. Data is gross of fees in GBP. Attribution results are for indicative purposes only. The portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the Investment Manager without notice. Past performance is not a reliable indicator of current and future results.

5

FOR AGM USE ONLY | NOT FOR FURTHER PUBLIC DISTRIBUTION

Strength of our approach

We believe that persistent market anomalies are best captured through combining disciplined quantitative and rigorous fundamental analysis

Quantitative research

Stock selection

Fundamental analysis

Breadth of analysis

Depth of analysis

Objective and unemotional

Portfolio construction

Forward looking and context aware

Rigorous and repeatable

Portfolio implementation

Dealing with poor and unstructured data

6

FOR AGM USE ONLY | NOT FOR FURTHER PUBLIC DISTRIBUTION

What do we look for in a company?

For every stock we ask 3 questions:

Is it a good business?

We consider the quality of the company through its profitability, sustainability of earnings and capital allocation discipline

Is it attractively valued?

We look at a company's valuation to assess if its future prospects have been incorrectly estimated by the market

Is the outlook improving?

Assessing the operational momentum of the business and how is this being reflected in expectations

Three complementary considerations that help predict stock returns

7

FOR AGM USE ONLY | NOT FOR FURTHER PUBLIC DISTRIBUTION

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download