JPMorgan Smaller Companies’ interim results covering the six months ended 31 January 2016 show a total return on net assets before dilution was -3.6% (-2.9% after dilution), which compares with -5.9% for the benchmark index. The return to ordinary shareholders was +0.6%.
The manager says the outperformance of the fund over the period was due mainly to stock selection. It was also aided by the overall positioning of the portfolio. They have aimed to benefit from the benign economic backdrop in the UK, and in particular from the resurgence of the UK consumer. This can be seen in some of the key positive contributions to performance – JD Sports (the retailer), Fevertree Drinks (supplier of drink mixers to the consumer) and Mortgage Advice Bureau (which benefits from the growth in the mortgages market).
JMI : JPMorgan Smaller Companies invests in resurgent UK consumer