8th Oct 2019 18:12
(Alliance News) - Jupiter US Smaller Companies PLC on Tuesday said its net assets fell year-on-year but performed well relative to its benchmark despite a difficult market.
Net assets at June 30 stood at GBP161.5 million, down 1.1% from GBP163.3 million last year. Per share, net asset value rose by 4.5% to 1,152.66 pence from 1,103.43 pence though at the end of financial 2019, Jupiter had 14.0 million shares in issue compared with 14.8 million last year.
The stock closed 0.5% lower at 1,075.00p apiece in London on Tuesday.
Chair Gordon Grender said: "Although it was a difficult year for the US smaller companies market, I am pleased to report that the net asset value per share of the company increased by 4.5% in the 12 months to June 30. This compares to a fall of 1.1% for the company's benchmark, the sterling adjusted Russell 2000 Index."
Jupiter reported that US Smaller companies sector advanced earlier in the year but peaked at the end of August. Performance tailed off thereafter, reaching a low on Christmas Eve.
Grender said: "The causes of this severe correction seemed to be concerns about economic growth, trade tensions with China and rising interest rates. Wage inflation began to accelerate in 2018, reaching a rate of over 3%, a level that would normally cause concern at the Federal Reserve."
Looking ahead, the company said it difficult to provide a certain market outlook "at this stage of such a long economic cycle".
Grender explained: "Slowing economic growth is an overriding concern. Against this, the bond market rally helps to support stock market valuations, investor sentiment is not overly-bullish and there are prospects for interest rate cuts.
"The US smaller company sector is an attractive one and interesting for long term investors. Generally it is under-researched and offers areas of undiscovered value."
By Eric Cunha; [email protected]
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