Fund Research

JPMorgan US Smaller Companies Investment Trust

Last update 12 September 2018

JPMorgan US Smaller Companies Investment Trust (JUSC) has for the past five years delivered benchmark-beating performance through a consistent stock picking approach to US smaller companies. The managers have a clear preference for high-quality companies, with strong management teams and a sustainable competitive advantage.

They place a strong emphasis on the price they pay for companies and because their philosophy rests on remaining invested with established companies generating consistent earnings growth, and a long-term ‘vision’ from the management teams that run them, the portfolio turnover (24%) is low compared with the category average (46%).

Accounting for close to 50% of the portfolio, financial services, producer durables and consumer discretionary are the largest sectors by absolute weight. However, financial services remains one of the largest underweight positions, largely due to the limited exposure to real estate investment trusts (REITs). Technology and healthcare are two other largely underweight sectors. This is because the managers place a great deal of importance on not over-paying for a company and both sectors are expensive, so it is harder for them to find an abundance of companies that meet their investment criteria in these areas.

The managers’ skill is evident in the level of alpha the portfolio has generated over the years – it sits in the top ten greatest alpha generating trusts in the IA North America and AIC North America/North American Smaller Companies sectors over three and five years.

In performance terms, over five years the trust has been outstanding, having delivered NAV total returns of 118.6%. In comparison, the Morningstar IT North American Smaller Companies and IA North American Smaller Companies sectors returns have been 96.1% and 88.2% respectively. JUSC has also outperformed large-cap funds - the IA North America sector and Morningstar IT North America sector have delivered returns of 95.5% and 95.3% over five years respective. More recently however, the trust’s performance relative to the benchmark has been weaker thanks (in the managers’ view) to the current focus on growth and momentum in the market.

Kepler Trust Intelligence provides research and information for professional and private investors. In order to ensure that we provide you with the right kind of content, and to ensure that the content we provide is compliant, you need to tell us what type of investor you are.

Read the full article

Fund History: JPMorgan US Smaller Companies Investment Trust

More Research

Welcome to Kepler Trust Intelligence

Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority.
Please enter a valid email address
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid email address
{{item.msg}}
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority. To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
{{item.msg}}
Please enter a company name
{{item.msg}}
Please enter a location name
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a platform
{{item.msg}}
Please choose an option
{{item.msg}}
Please select a range
{{item.msg}}
Please enter a trust
{{item.msg}}
View an example
Please select an option
{{item.msg}}
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
{{item.msg}}
Please enter your first name
{{item.msg}}
Please enter your last name
{{item.msg}}
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid password
{{item.msg}}
Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase. We do not share your personal information and your answers are not linked to your identity for marketing purposes.

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.