Investment trust JPMorgan European Growth & Income (LON:JEGI) has extended its winning streak with market-beating FY26 results. The fund has now outpaced its benchmark and its peers by a substantial margin over one, three and five years.
Winning ways
For the year to March 2026, JEGI increased its NAV (net asset value) per share by 20.1% and its share price return by 21.2%. That meant it outperformed the MSCI Europe ex-UK total return index by 5.3% in NAV terms and 6.4% in share price terms.
It also meant JEGI extended its record of beating the market to five years, with a near-80% NAV total return. In terms of share price total return, the gain is even bigger as the table below shows.
| 1 Year | 3 Years | 5 Years | |
| NAV total return | 20.1% | 45.2% | 79.5% |
| MSCI Europe ex-UK | 14.8% | 32.5% | 51.8% |
| Excess return | 5.3% | 12.7% | 27.7% |
| Share price total return | 21.2% | 56.6% | 95.2% |
Source: JEGI
The five star-rated trust focuses on identifying companies with improving operational momentum, quality characteristics and attractive valuations. These factors have made for a robust portfolio in a market which has seen considerable volatility in the last year.
Attractive combination
Following the end of the financial year, the board announced a combination with European Opportunities Trust (LON:EOT). The agreement will see JEGI assume some of the cash, assets and undertakings of EOT.
Bringing the two trusts together means increased scale and liquidity for shareholders of both companies as well as lower ongoing charges. It also raises the profile of JEGI as a leading investment vehicle for those seeking growth and income in European stocks.
JEGI is a class apart when it comes to finding quality European stocks with attractive valuations and cash flows. For investors in EOT, being able to roll over their holdings means they can now benefit from the team’s superior stock-picking skills.
One of the most impressive aspects of the managers’ approach is they don’t try to reach for returns. Their big winners last year included French power utility Engie, Swiss pharma giant Novartis and Dutch telecom operator KPN.
These aren’t small, unknown, under-researched stocks, they are all well-known, large-cap companies in large, liquid, well-regulated markets. Also impressive is the moderate use of gearing which is just 5% compared to a top limit of 20%.
Typically, past performance isn’t indicative of future returns. Yet from 1 April to 18 June, the trust has continued to deliver with an NAV total return of 12.8% against 8.8% for the benchmark.
Read the press release here:
