IN BRIEF: JPMorgan US Smaller Cos NAV falls, eyes set on turnaround

JPMorgan US Smaller Cos Investment Trust PLC - investor focused on smaller US stocks - NAV total return is minus 12.4% in the six months to June 30, compared to minus 10.3% for the Russell 2000 Index benchmark. Total return to shareholders is minus 18.7%, reflecting a widening in the share price discount to NAV from 1.8% at the end of 2024 to 8.8% on June 30. The gearing level holds steady at 7.2%. No dividend is declared, unchanged from last year. Urges shareholders to remember that ‘while long periods of underperformance by US small caps are normal throughout the history of this sector, they are often followed by strong outperformance.’ Says small cap earnings hurt by an uneven macro environment of inflationary increases, high interest rates and weak industrial demand. Believes earnings growth can broaden out as ‘re-shoring, deregulation, and clarity around interest rate and tariffs boost domestic investment and corporate sentiment’.

Chair Dominic Neary comments: ‘While performance in the first half was disappointing when compared with the benchmark, it was not unexpected given the company’s investment style and the market backdrop. The board remains firmly supportive of the managers’ disciplined approach, which has delivered strong long-term performance through market cycles. The managers continue to invest in high-quality, entrepreneurial companies at the heart of the US economy, where we believe the best long-term opportunities lie.’

Current share price: 400.00 pence, closed flat on Friday

12-month change: down 2.9%

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