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Stock Analysis & ValuationJPMorgan European Growth & Income plc (JEGI.L)

Professional Stock Screener
Previous Close
£145.00
Sector Valuation Confidence Level
High
Valuation methodValue, £Upside, %
Artificial intelligence (AI)79.39-45
Intrinsic value (DCF)50.44-65
Graham-Dodd Method0.65-100
Graham Formulan/a

Strategic Investment Analysis

Company Overview

JPMorgan European Growth & Income plc (JEGI.L) is a well-established open-ended equity mutual fund managed by JPMorgan Funds Limited and co-managed by JPMorgan Asset Management (UK) Limited. Founded in 1929 and domiciled in the United Kingdom, the fund primarily invests in European public equity markets, with a focus on the financial sector. It targets growth and value stocks, benchmarking its performance against the FTSE World Europe ex UK Net Index. As part of the Financial Services sector, JPMorgan European Growth & Income plc offers investors exposure to a diversified portfolio of European equities, aiming to deliver both capital appreciation and income through dividends. The fund's long-standing presence and association with JPMorgan’s asset management expertise make it a notable choice for investors seeking European market exposure with a balanced risk-return profile.

Investment Summary

JPMorgan European Growth & Income plc presents an attractive investment opportunity for those seeking exposure to European equities with a focus on income generation. The fund’s diversified portfolio in the financial sector, combined with JPMorgan’s robust asset management capabilities, provides a stable investment vehicle. With a dividend yield supported by a consistent payout (6 GBp per share) and a solid net income of 73.98 million GBp, the fund appeals to income-focused investors. However, risks include exposure to European market volatility and sector-specific risks within financials. The fund’s beta of 0.99 suggests it closely tracks market movements, offering neither significant downside protection nor excessive upside potential. Investors should weigh the fund’s income stability against broader macroeconomic risks in Europe.

Competitive Analysis

JPMorgan European Growth & Income plc competes in the crowded European equity income fund space, leveraging JPMorgan’s brand strength and extensive research capabilities. Its competitive advantage lies in its long-term track record, sector-specific focus on financials, and the backing of a global asset management giant. The fund’s benchmark alignment with the FTSE World Europe ex UK Net Index ensures transparency and performance comparability. However, its reliance on the financial sector could be a double-edged sword, as it may underperform during sector downturns. Competitors with broader sector diversification or lower expense ratios may appeal to cost-conscious investors. The fund’s ability to generate consistent income and its association with JPMorgan’s expertise position it well, but it must continuously demonstrate outperformance or risk losing assets to more flexible or cheaper alternatives.

Major Competitors

  • Fidelity European Values plc (FEV.L): Fidelity European Values plc is a UK-based investment trust focusing on European equities. It offers a broader sector diversification compared to JEGI.L, which may reduce risk but also dilute financial sector exposure. Fidelity’s strong research team and active management approach are strengths, though its performance fees may deter some investors.
  • JPMorgan European Investment Trust plc (JET.L): Another JPMorgan-managed fund, JET.L, competes directly with JEGI.L but with a slightly different strategy, focusing more on capital growth. This could appeal to investors less concerned with income. Its overlap in management and research resources with JEGI.L is a strength, but it may lack the same income focus.
  • Scottish Mortgage Investment Trust plc (SMT.L): Scottish Mortgage offers global growth equity exposure, contrasting sharply with JEGI.L’s Europe-focused income strategy. Its high-growth tech holdings attract investors seeking aggressive growth, but this comes with higher volatility and less income, making it a different risk-reward proposition.
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