JPMorgan Mid Cap says, over the six months to 31st December 2015, the Company’s total return on net assets was 9.0%, 8.4 percentage points ahead of the Company’s performance benchmark, the FTSE 250 Index (excluding investment trusts) which returned 0.6% on a total return basis. The return to shareholders was 25.5% as the discount was elminated.
The manager focused the portfolio to benefit from the resurgence of the UK consumer, and the steady but positive economic growth being enjoyed in the UK. This stock selection was highly beneficial in the period. Notable consumer orientated companies that contributed to the outperformance were Betfair, JD Sports, WH Smith, Card Factory and Howden Joinery and our significant overweight position in the housebuilders.
Not all consumer facing companies did well, and we exited positions in Halfords and Poundland. Other disappointing performers included Interserve (on concerns over exposure to the Middle East) and TalkTalk, which they exited post the cyber security breach. Mergers and acquisitions activity continued in the FTSE 250 space. HellermannTyton, a large position for the fund, was acquired for a significant premium by a large US company, and Cable & Wireless Communications, a long term holding in the portfolio, was also bid for. In addition Betfair agreed an exciting merger with Paddy Power, which will create a significant FTSE 100 company upon completion.
JMF : Another bumper period for JPMorgan Mid Cap