Fund Profile

JPMorgan UK Smaller Companies 07 August 2019


Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by JPMorgan UK Smaller Companies. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

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JPMorgan Smaller Companies (JMI) aims to give investors access to fast-growing, innovative smaller companies that often have their own structural growth drivers, making them less directly linked to the performance of the overall UK economy.

Georgina Brittain has managed this trust for more than 20 years and was joined by Katen Patel six years ago. The team uses a bottom-up stock picking approach to take advantage of the inefficiencies in the small-cap market that offer a diverse range of alpha-generating opportunities. The team uses both quantitative and fundamental analysis to find companies that exhibit quality, momentum and value characteristics, creating a diverse portfolio of 88 holdings. The largest sector overweights come from the media (6.3%), leisure goods (6.2%) and financial services (3.9%) sectors. At the other end of the spectrum, the trust has little exposure to support services (-3.1%), travel and leisure (-2.9%) and pharma and biotech (-2.7%) relative to the benchmark.

Returns over the long term have been impressive for the trust, which has outperformed the benchmark in eight of the past ten calendar years. Over a five-year period, the trust has generated NAV total returns of 55.1%, once more beating the benchmark’s return of 29.6%, as well as the AIC and IA peer groups, which returned 51% and 53.3% respectively. More recently, the trust’s performance has been a tale of two halves. The trust was hit particularly hard during the fourth quarter of 2018, losing close to 20% NAV total returns. Since then the trust has bounced back, returning NAV total returns of 19.3%, double the benchmark returns of 9.9% and considerably more than the AIC peer group (12.8%) and the IA peer group (12.1%).

Alongside capital appreciation, the trust offers investors a reasonable level of income. Currently the trust yields 2.4% and the dividend has increased by 23.7% over the past five years. Nevertheless, the trust has had a stubborn discount since the European Union membership referendum in 2016 and over the past year the trust has traded, on average, at a discount of a little under 15%. Currently the discount sits at 14%, as at 26 Jul 19.

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2022 Kepler Growth Rated Fund

This trust has been awarded a rating by Kepler Trust Intelligence for growth... Find out more

Fund History

22 Jun 2022 Spider's web
We outline our new quantitative system for mapping the crucial performance characteristics of investment trusts…
16 Feb 2022 Perfectly formed
Our research suggests that investment trusts really are a better way to gain exposure to smaller companies…
16 Feb 2022 How keeping disciplined pays off in the small cap market
JMI’s track record shows why keeping grounded pays off in a market full of opportunity…
05 Jan 2022 Kepler’s top-rated trusts for 2022
We unveil the winners of our ratings for 2022 in the Growth, Income & Growth and Alternative Income categories…
13 Oct 2021 Results analysis: JPMorgan UK Smaller Companies
JMI has built on its excellent track record, taking a balanced approach to a dynamic asset class…
13 Oct 2021 Look beyond the recovery trade to find tomorrow’s large caps today
While the re-opening trade has fuelled UK smaller companies in 2021, there is more to the story for the domestic economy. Here, we discuss three companies that the team at JPMorgan UK Smaller Companies Investment Trust (JMI) believe could flourish into the future…
21 Jul 2021 UK smaller companies set for long-term success
Hopes are high for the UK’s economy and particularly UK stocks, given their relatively low valuations, as we begin to pick up the pieces after the COVID crisis, and the outlook for UK smaller companies is optimistic. However, a considered approach is key to avoid simply following the crowd…
08 Jul 2021 London Calling
UK equities represent a ‘once in a generation’ opportunity for investors according to the managers who joined us to discuss the outlook at our event last week…
07 Jul 2021 Slides and Audio: JPMorgan Smaller Companies
Download the presentation and listen to the audio from our 'Cool Britannia' Summer conference on 01 July...
07 Jul 2021 Slides and Audio: Roundtable - Small is beautiful
Download the presentation and listen to the audio from our second roundtable discussion with Dan Whitestone, Georgina Brittain and Judith MacKenzie...
23 Jun 2021 Time to back Britain?
After a challenging period for the United Kingdom, we wonder if it could be the most exciting market on a five-year view…
09 Jun 2021 Cool Britannia?
Join the team at Kepler Trust Intelligence and six leading UK fund managers as we examine the prospects for UK equities with COVID in retreat and Brexit uncertainty finally behind us…
21 May 2021 Fund Analysis
JMI has a strong long-term track record of outperformance...
22 Apr 2021 Tapping into the UK smaller companies revival
A year ago, the outlook seemed not far off dire for UK smaller companies...
25 Mar 2021 Results analysis: JPMorgan Smaller Companies
JMI continues to be a compelling proposition for investors even on a tighter discount, after releasing a strong set of half-year results this morning…
06 Jan 2021 This time next year Rodney...
We review the performance of the team’s ‘top picks’ for 2020 – including some proper plonkers – and place our bets for the year ahead…
23 Dec 2020 Fund Analysis
One of the strongest performing trusts in 2019, we look at JMI and the portfolios continued outperformance of the benchmark and peers…
22 Jul 2020 A game of four quarters
Seven trusts, two quarters. Are our team still happy with their trust picks for 2020?
27 Feb 2020 Fund Analysis
After an extraordinary 2019, JMI has seen its discount once more slip, offering a potentially attractive entry point…
02 Jan 2020 Crystal Balls
Drunk on our success in choosing funds to perform well in 2019, the team at Kepler Trust Intelligence is back at the table with a glint in its eye…
07 Aug 2019 Fund Analysis
The managers of JPMorgan Smaller Companies apply a clear, consistent process to UK smaller companies to produce consistent returns...
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