25th Feb 2015 16:08
LONDON (Alliance News) - Jupiter US Smaller Companies PLC said Wednesday that it had underperformed its benchmark in the first half of its financial year.
In the half year to end-December 2014 the company posted a total return on net asset value per share of 4.7%, compared with a 10.7% return for its benchmark the sterling-adjusted Russell 2000 Index.
The company said that "although it is disappointing that the NAV performance lagged that of the benchmark, the company's conservative investment style means that this can happen when the market is led by high risk areas, such as biotechnology, as it was in this period. Over the long term, however, the approach has produced good returns."
Jupiter said that a number of its stocks have performed poorly, particularly in energy, and its exploration and production stocks suffered due to weakness in oil prices.
New purchases during the period were focused on stocks in areas with recovery potential, housing and consumer.
"There is considerable uncertainty concerning economic growth outside the US. The US economy has held up well compared to others and this should provide a helpful backdrop for long-term equity investors," the company said in a statement.
Shares in Jupiter US Smaller Companies are trading down 0.9% at 655.50 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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