In March 2024 we made the case for investing in the newly merged JPMorgan UK Small Cap Growth & Income (JUGI).
The trust is the result of a merger between JPMorgan Mid Cap and JPMorgan UK Smaller Companies, finalised in November 2023, and since then it hasn’t disappointed investors.
Managers Georgina Brittan and Katen Patel are bottom-up stock pickers with an impressive performance record.
The gradual recovery in UK consumer confidence and the economy returning to growth this year has helped the trust’s portfolio which consists of UK mid- and small-cap companies.
WHAT HAS HAPPENED SINCE WE SAID BUY?
Some of the trust’s top 10 constituents have performed exceptionally well.
AIM-listed colour cosmetics supplier Warpaint (W7L:AIM) delivered a strong first-half results on 26 June. Warpaint is the trust’s fourth largest holding and its shares have gained 23% over the past month.
The trust also counts cooking sauces, cakes, and custards maker Premier Foods (PFD) as its second largest holding (at 3.8%). The stock which owns some of Britain’s best-loved brands including Mr Kipling, Batchelors and Bisto has rallied 350% as it has delivered on a turnaround strategy. Over the past year it has gained 23%.
Other strong performers in the trust’s top 10 include Bank of Georgia (BGEO) – shares have gained more than 10% in the past month.
WHAT SHOULD INVESTORS DO NOW?
Stick with the trust which offers an enhanced dividend policy since merging, targeting a 4% yield on NAV to be paid from a combination of income and capital.
Managers Brittan and Patel remain confident: ‘We believe UK equities offer an attractive and we remain focused on selecting high-quality, resilient companies that can invest at high returns to drive strong and sustainable earnings growth.’
The trust has an ongoing charge of 1.02% and trades at a 5.9% discount to net asset value.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
magazine
