JPMorgan Smaller Companies has announced results for the year ended 31 July 2015. Over that period the total return on net assets was 13.4%, which compares with 10.5% for the benchmark index (the FTSE Small Cap Index excluding investment trusts). The return to Ordinary shareholders was 14.6% reflecting a slight narrowing of the share price discount to diluted net asset value from 17.8% to 17.0%. The final dividend was increased from 9.6p to 11p.
Georgina Brittain and Katen Patel’s manager’s report says both sector and stock selection were positive over the year. Two key sector contributors were their overweight position in Financial Services (OneSavings Bank and Mortgage Advice Bureau, among others) and in the Beverage sector where they benefitted from a large position in Fevertree Drinks, an IPO during the year. They also continued to benefit from a significant underweight position in the Mining sector. In terms of stocks, several of their long term holdings again delivered very strong returns; notable among these were 4Imprint, Staffline and Telit Communications. While there were inevitable disappointments during the year, the key one was the holding in Trinity Mirror. They say they have retained our holding in the company, as they believe the price decline to be overdone and the shares to be very under-valued.
JMI : JPMorgan Smaller Companies’ results ahead of benchmark