JPMorgan European Discovery Trust plc (LON:JEDT) has announced its September commentary.
Monthly
As of 2023/09/30
- The trust underperformed its benchmark over September.
- Positive contributors to relative returns included stock selection in construction and materials and stock selection and an underweight position in medical equipment and services.
- Detractors included stock selection and an overweight position in household goods and home construction and stock selection in retailers.
- At the stock level, an overweight position in Bravida, a Swedish multi-technical services company, outperformed as the stock rebounded from earlier months following the chief executive officer’s statement that there is a general weakening in Nordic construction and installation markets.
- An overweight position in BPER Banca, an Italian banking group, outperformed as the company continues to have strong tailwinds from increasing interest rates.
- On the other hand, an overweight position in Zalando, a German online fashion retailer, underperformed as warm weather and a squeeze on consumer budgets have delayed the start of the autumn season, leading to more discounting.
- An overweight position in Verallia, a French manufacturer of glass packaging, underperformed as supply seems to have reached a balance with demand, raising questions about the sustainability of Verallia’s pricing power.
