JPMorgan European Investment Trust Income Pool

European Equities

Rated Fund 2015-19. Looks for sustainable dividends from larger companies

JPMorgan European trust is unusual as it has two portfolios of assets. One is income-oriented and the other is designed to produce capital growth. Shareholders in either of the two portfolios are able to convert some or all of their shares into the other on an annual basis in March each year, without incurring any liability to capital gains tax.

Income shareholders receive a yield of 3% and the income is paid quarterly. They also receive any growth in the assets of the income portfolio. The trust has been run since 2006 by Stephen Macklow­Smith, Alexander Fitzalan Howard and Michael Barakos, and they were joined by Thomas Buckingham in 2016.

The managers choose stocks from a list of companies with the highest yields that have been screened for sustainability of dividends and momentum characteristics. They invest mainly in larger companies but the portfolio also holds some medium-sized businesses.

They point to valuations that have become more attractive with last year’s falls in stock prices. When they take into account the growth in company earnings and dividends that they expect during 2019, at 10% and 7% respectively, then this year’s basis for valuations looks even more attractive.

They think that political risks will subside in the next six months. With the European Central Bank still pursuing loose monetary policy and consumer confidence high across the continent, they are confident that stronger company earnings can propel equity markets higher.

Shares in the trust can generally be picked up at a high single digit or low double digit discount to net asset value.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
JPMorgan European Investment Trust Income Pool
JP Morgan Asset Management (UK) Ltd
Closed Ended Investment Company
1.08 %
Risk Rating
3 Year Sharpe
3 Year Alpha
3.6 %
MSCI Europe ex UK TR GBP
Fund Size
£ 146.64 million
Discount Premium
The investment objective will be to provide a growing income together with the potential for long-term capital growth from a diversified portfolio of investments in Continental European companies; to invest in a diversified portfolio of investments in Continental European companies; to provide a growing income together with the potential for long-term capital growth; to manage liquidity and borrowings to increase returns to shareholders.
Holding %
Us Bank Note Eur 50m Int Rate 2.69% 10.33 %
JPM EUR lqdty LVNAV X (flex dist.) 5.84 %
Roche Holding AG Dividend Right Cert. 3.64 %
Novartis AG 3.62 %
National Australia Bank Frn 22 Aug 2019 3.11 %
Total SA 2.59 %
Allianz SE 2.17 %
Sanofi SA 1.96 %
Unilever NV DR 1.82 %
Iberdrola SA 1.40 %
Region %
Eurozone 67.33 %
Europe - ex Euro 29.57 %
Sector %
Financial Services 25.06 %
Industrials 13.37 %
Consumer Cyclical 10.08 %
Utilities 9.67 %
Healthcare 9.07 %
Real Estate 6.93 %
Energy 6.83 %
Communication Services 6.78 %
Consumer Defensive 6.35 %
JP Morgan Asset Management (UK) Ltd
EC4Y 0JP, London, United Kingdom
Legal Structure
Closed Ended Investment Company


Thomas Buckingham
Joined 03/31/2018

Mr. Buckingham, Executive Director, has been employed by J.P. Morgan Investment Management Inc. or its affiliates (or one of their predecessors) since 2007. He obtained a BEng degree in Aerospace Engineering from the University of Surrey. Mr. Buckingham is a CFA charterholder.

Stephen Macklow-Smith
Joined 08/02/2006

Stephen Macklow-Smith, managing director, is a portfolio manager within the J.P. Morgan Asset Management European Equity Group, responsible for Core portfolios, the European assets of UK pension funds and the JPMorgan European Investment Trust. An employee since 1997, Stephen was previously head of the European team at HSBC Asset Management. Prior to this, he was a fund manager of European pension fund assets at Henderson Administration. Stephen obtained an M.A. in Classics and Modern Languages from Oxford University.

Michael Barakos
Joined 08/02/2006

Michael Barakos, Managing Director, has been employed by J.P. Morgan Investment Management Inc. or its affiliates (or one of their predecessors) since 1999. He obtained a BSc (Hons) in Economics and Political Science from the London School of Economics and is a CFA charterholder.

Alexander Fitzalan Howard
Joined 08/02/2006

Fitzalan Howard joined Flemings in 1986. From 1990, was involved in the development of the Czechoslovakia Investment Corporation Inc., and responsible for the establishment of the first Czech domestic mutual funds. Set up Flemings' Prague office in 1992. Returned to London in 1993 as an Investment Manager with Flemings' North American Portfolios Group. Took over the management of Save and Prosper Overseas Growth Trust in 1994. Appointed a Director of Fleming Investment Management in 1998.

Data provided by Morningstar.

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