Jupiter Dividend & Growth Trust outperformed the FTSE All-Share Index by some margin in 2015 – the total assets rose by 6.9% against a 2.5% fall in the index (both capital only). The fund has zero dividend preference shares, whose net asset value rose by 7%; ordinary income shares, whose asset value rose marginally from 1.1p to 1.13p; and common shares whose asset value rose by 8%. Dividends on the ordinary income shares rose from 0.72p to 0.83p. Dividends on the common shares rose from 2p to 2.32p.
The report says, in the period under review, the company enjoyed strong contributions from housebuilders Crest Nicholson and Galliford Try helped by a favourable mix of strong demand and limited supply. Micro Focus International performed strongly following its transformative acquisition of The Attachment Group which tripled the size of the business. Management has an impressive track record, is strongly aligned with shareholder interest and targets total shareholder returns of 15 per cent. to 20 per cent. per annum. Interim results from motor insurance underwriters esure Group and Direct Line Insurance Group provided further confirmation that motor rates were hardening. As with housebuilders, these domestic businesses offered some insulation from the wider global economy. These cyclical companies, along with airlines International Consolidated Airlines Group and Ryanair Holdings, have all demonstrated a capacity discipline that has enabled them to achieve pricing power and in several cases reward shareholders with special dividends.
Media holdings ITV and WPP benefited from a boost in advertising spend while Imperial Tobacco Group performed strongly; it could benefit from further sector consolidation. They remained opportunistic and selective in the initial public offering arena and took advantage of the listings of Autotrader, Sanne Group (fund administrator), Ranger Direct Lending, Softcat (IT infrastructure provider) and McCarthy & Stone (retirement homes). Your Company was once again helped by its avoidance of mining companies where several years of enthusiastic capacity-boosting capex had led to falling commodity prices and stressed balance sheets as demand from China waned.
JDT / JDTC / JTDZ : Jupiter Dividend & Growth beats UK market by some margin