Fresh start for Jupiter UK Growth - annual report summary

jupiter-uk-growth-investment-trust-annual-report

Our annual report summary series delivers a condensed analysis of a selected investment trust's annual report, including details of the trust's aim, investment style, portfolio focuses, gearing policy, charges and performance.

JUPITER UK GROWTH

Having changed its name to Jupiter Global Trust in November 2015, the former Jupiter Primadona Growth Trust changed its name again when it adopted a new remit in April 2016.

It is now called Jupiter UK Growth Trust (JUKG) and invests in a concentrated portfolio of mainly UK equities for capital appreciation. It has shareholder assets of £40 million.

Steve Davies, who heads Jupiter's UK equities team, was appointed manager in April 2016. He favours a high-conviction, bottom-up investment approach focused on 'recovery' and 'growth' stocks.

JUKG's portfolio has been reduced to 40 holdings. The top five, accounting for 26.7 per cent, are Lloyds Banking Group, Legal & General, Dixons Carphone, Barclays and TalkTalk Telecom Group.

jupiter-uk-growth-nav-and-share-price-performanceOverseas companies account for 10.59 per cent. Ongoing charges last year were 1.54 per cent.

Net asset value (NAV) total returns per share fell 14.7 per cent over the year, which was disappointing relative to the 5.5 per cent rise in JUKG's old benchmark, comprised of 75 per cent FTSE All-Share index and 25 per cent FTSE World ex UK index.

With JUKG's board using share buybacks and new issuance to keep the share price close to NAV, share price total returns were -14.6 per cent.

Last year's returns were severely impacted by sharp post-EU referendum setbacks for a number of the trust's holdings, notably banks and retailers, many of which have rebounded strongly since the year end.

Bolstered by special factors, last year's dividends totalled 7p. They are not indicative of the likely level of this year's single dividend.

See the full annual report on the Jupiter website


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