16th Oct 2025 11:21
(Alliance News) - JPMorgan UK Small Cap Growth & Income PLC on Thursday expressed optimism for the UK despite the presence of "pessimistic views" on the domestic economy, as it posted a decline in net asset value per share.
The London-based trusts invests in fast growing, innovative smaller companies that "help drive the UK domestic economy".
It is the result of a merger completed last year between JPMorgan Mid Cap Investment Trust PLC and JPMorgan UK Smaller Cos Investment Trust PLC.
JPMorgan UK Small Cap Growth & Income reported a NAV total return of 0.6% for the financial year that ended July 31, underperforming its benchmark index, Numis Smaller Companies plus AIM index, which returned 2.5% over the same period.
NAV per share fell 3.6% to 362.6 pence at July 31 from 376.2p a year prior, with this decline offset by dividend payments. JPMorgan UK Small Cap paid 15.04 pence in dividends for financial 2025 and plans to pay 14.52p in dividends, or 3.63p per quarter, in financial 2026.
Shares in the trust were 0.5% lower at 321.76 pence on Thursday morning in London.
The trust noted that a large number of its bigger positions made strong contributions throughout the year, namely Lion Finance Group PLC -previously called Bank of Georgia - construction and building fit out company Morgan Sindall Group PLC, and pensions consultancy business XPS Pensions Group PLC.
Detractors over the year included subsea equipment rental company Ashtead Technology Holdings PLC, said the trust, as Ashtead Tech faced concerns around its end markets and contract delays.
JPMorgan UK Small Cap Growth & Income noted that colour cosmetics supplier Warpaint London PLC also "performed poorly", despite "delivery of forecast profits".
Looking ahead, the trust noted that while "pessimistic views" of the UK economy are present, it remains positive on its market.
"The small cap area of the UK equity market is incredibly diverse, with over 1000 companies in our index. Therefore, despite the lacklustre macro backdrop, we continue to find exciting opportunities in our universe, and we believe we have many of them in our portfolio that will deliver strong returns into the future," it said.
"Despite the uncertainties of the investment climate, at home and abroad, there is cause for optimism on several fronts. UK equities have been trading at a hefty discount to both historical valuations and to most other major markets for some time. The discount on smaller cap stocks has been even greater," said Chair Katrina Hart.
"However, the rise in takeover activity, the increase in company share buybacks and recent positive changes to the UK Listing Rules, have all contributed to a tentative recovery in inflows into UK equities, which suggests that domestic and international investors are finally beginning to recognise the value on offer," continued Hart.
By Christopher Ward, Alliance News reporter
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Jpm Uk Sml CapBank Of Georgia GroupMorgan Sindall GroupXps PensionsWarpaint London