JPMorgan European Growth & Income

The process for selecting stocks is bottom-up and combines insights from both fundamental and quantitative research. The portfolio of around 90 stocks is built using JPMorgans principles of quality, value and momentum as style considerations.

JPMorgan European Growth & Income has an investment universe of around 1,300 stocks – when selecting companies the team go through a four-stage process.

The first is style factors: this comes in the shape of quality - whether it is a good business; value – is it attractively valued; and momentum – is the outlook improving? Momentum is arguably the most important of these three style factors as it indicates to management what is happening to earnings revisions and price momentum.

The second is stock-specific considerations – this includes fundamental view revisions, such as news flow; company meetings; and analysing placings and initial public offerings.

The third is ESG considerations, which may positively or negatively impact the investment thesis.
The final factor is the equity failure model which incorporates a wide range of predictors such as quality metrics, capital discipline, governance, ownership, forensic accounting factors, short interest data, and return volatility. This helps identify stocks with high risk of financial distress.

JEGI also targets a 4% annual dividend – which is paid on a quarterly basis. However, it should be noted this has no bearing on stock selection by the management team.

JPMorgan European Growth & Income is an all-weather portfolio which is reasonably risk-averse and has several active stock, sector and regional constraints built into the process. The managers expect the portfolio to lag at inflection points in markets and expect it to perform best when there is a trending market (upwards or downwards).

The team monitor the portfolio on an ongoing basis to ensure that it reflects insights from its 90+ team of investment professionals globally. JPMorgan has also developed their own in-house application called Investor Insights to monitor portfolios, looking at them from different angles to ensure they understand both the intended and unintended risks. This includes live portfolio positions, sector weights, active positions and style factor exposures, amongst other features.

During the Global Financial Crisis, the team found that many third-party risk tools were not sufficiently sensitive to short-term movements and hence didn’t provide portfolio managers with an appropriate view of the risk each portfolio was taking. As a result, the team built their own risk management tool – Risk Dashboard – which covers cross-sectional and time series analysis, scenario analysis and stress testing. 

ESG is considered throughout the decision-making process as the team believe corporate governance plays a big part in the long-term success of small-caps historically.



JPMorgan takes an integrated approach to ESG investing, and considers environmental, social and governance as financially material in investment analysis and investment decisions. JPMorgan addresses ESG issues at three different stages of the stock selection process: research, engagement, and portfolio construction.



The ESG score for each company is informed by the firm’s proprietary research platform, as well as company engagements. The analysts complete a 40-question ESG checklist on over 2,500 companies globally.

The ESG score is in development with their Sustainable Investing and Stewardship team.

Gearing on JEGI can range from -10% (cash) to 20%. The management team will typically look to manage gearing within a range of 5-8%.

JEGI’s discount has improved markedly in 2025 as demand for European equities picked up. It now trades at a small discount to NAV with the five-year average at a near 10% discount*.

*as at 4 February 2026