Stock selection helps JPMorgan Mid Cap to a great H2 for 2014

JPMorgan Mid Cap has announced interim results for the six months ended 31 December 2014 that show the fund delivering a total return on net assets of 9.6% – well ahead of the FTSE Mid 250 Index which returned 3.2%. The return to shareholders was 9.2%. the interim dividend has been increased by 45%, from 5.5p to 8p. this is a reflection of the Board’s desire to balance the interim and final dividend better and they are keen to stress that, if there is an uplift in the final dividend, it won’t be anything like as large.

Georgina Brittain’s manager’s report says investments in support services, Ashtead and Howden Joinery in particular, and general retailers, notably Dixons Carphone and Card Factory, all added value. Being underweight oil stocks was also beneficial for their performance relative to the benchmark. A number of investments were promoted into the FTSE 100. these were sold and the money re-invested in the real estate sector and into companies exposed to the UK consumer. As they perceived that the likelihood of interest rate rises was easing, they increased positions in London-focused real estate companies, adding to holdings in Great Portland and Shaftesbury, as well as buying a new position in Workspace. In the retail sector they established new positions in Greggs (the baker) and JD Sports. JPMorgan Mid Cap participated in one IPO during the period, SSP, which operates food outlets in travel hubs.

JMF : Stock selection helps JPMorgan Mid Cap to a great H2 for 2014