JPG : Jupiter Primadona discount narrowing offsets underperformance
Jupiter Primadona Growth has published its results for the year that ended on 30 June 2014. Over the year it generated a return on net assets of 9.7%, underperforming its benchmark, but shareholders did much better than that as the rating on the fund improved significantly, eliminating the discount (the return to shareholders was 21.0%). By contrast the FTSE All-Share Index returned 13.1% and the FTSE World ex UK Index returned 9.8% – Jupiter Primadona measures itself against a combination of these two indices – its composite benchmark returned 12.0%. Following a revision of the company’s dividend policy, the dividend was cut from 8.35p to 6.4p (paid in four quarterly instalments of 1.6p – 4.8p was paid during the year).
On the plus side, the manager mentions Talk Talk and Legal & General as contributing to performance but against that holdings in ITE, Speedy Hire and Johnston Press underperformed. Within the funds portfolio, Jupiter European Opportunities, Findlay Park American, AXA Framlington American Growth, Prusik Asian Equity Income Fund and Jupiter Japan Income Fund I-class added value. Meanwhile, the Polar Capital Japan Alpha Fund, the CF Morant Wright Japan Fund and Tau Capital which invests in emerging European assets detracted from performance