Takeovers provide boost for Jupiter US Smaller Companies - annual report summary


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 US Smaller Companies (JUS) invests for long-term capital growth in quoted US smaller and medium-sized companies. The trust's report & accounts for the year to 30 June 2016 show assets of £174 million.

Robert Siddles has been manager since 2002, having moved with the trust from F&C Investments in 2013. He favours a risk-averse investment approach, emphasising capital preservation, and contends that this should produce superior long-term returns but not necessarily good results every year.

He takes a long-term view of company business prospects and buys shares when they are cheap and have substantial appreciation potential.

jupiter-us-smaller-companies-performanceHe describes his investing universe as a diverse and dynamic part of the North American market, but warns that it tends to be highly geared to growth and is particularly vulnerable to market setbacks and other changes.

There are 50 holding in JUS's portfolio, with none over 3 per cent. Financial services is the largest sector at 21.8 per cent, followed by healthcare (18.3 per cent) and producer durables (17.2 per cent). The portfolio was not geared last year. Ongoing charges are 1.01 per cent.

Helped by several takeovers, JUS's net asset value (NAV) per share grew 8.7 per cent last year, marginally outperforming its benchmark, the sterling-adjusted Russell 2000 index.

With share buybacks keeping the discount close to the board's 10 per cent limit, the share price gained 5.4 per cent. The trust's NAV has pulled well ahead of its benchmark since launch, but is marginally behind over five years due to disappointing returns in 2014-15. JUS pays no dividends.

See the full annual report on the Jupiter website.

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