JPMorgan US Smaller Cos Ahead Of Benchmark In 2017, Pays Dividend

20th Mar 2018 14:27

LONDON (Alliance News) - JPMorgan US Smaller Companies Investment Trust PLC on Tuesday said it outperformed its benchmark during 2017, saying its performance over the year has been "impressive".

The company reported a total return on its net asset value of 6.3%, outperforming its benchmark, the Russell 2000 in sterling terms, which rose 4.5%. The result was driven by "strong" stock picking, it said.

JPMorgan US Smaller Cos said the "only" disappointment was that all its returns were stronger in local currency but were hurt by the recovery in sterling against the US dollar.

The company's NAV per share rose 7.7% to 294.20 pence per share from 276.70p the prior year, with shares trading at an average discount of 2.5% during the year.

The stock was up 0.7% at 282.95p per share on Tuesday.

JPMorgan US Smaller Cos said its portfolio's positioning remains relatively unchanged, compared with the year before as 60% of the overall portfolio's allocation remained in the financial services, consumer discretionary, and producer durables.

The group said its revenue after taxation of GBP1.6 million removed the deficit in the revenue reserve during the year. As a result, the board declared a dividend of 2.5 pence, having paid zero dividend in 2016.

JPMorgan US Smaller Cos Investment Manager Dan Percella said: "We continue to believe US earnings will grow in 2018 and that the recent tax reform should act as a tailwind to the current late cycle growth environment."

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