Fund Research

JPMorgan Mid Cap

Last update 10 July 2019

JPMorgan Mid-Cap (JMF) aims to generate long-term capital growth from UK mid-cap stocks by using quantitative research and fundamental stock analysis to take advantage of investor psychology and inefficiencies in the market. The managers, Georgina Brittain and Katen Patel, believe this approach is perfectly suited to the mid cap market as it is less well covered by analysts than the large cap market and is therefore less efficient, meaning that there are many opportunities to gain an edge with superior analysis.

The track record of JMF shows the potential in their approach: over the past five years JMF has generated NAV total returns of 61.2%, compared to just 36.6% for the FTSE 250. The share price has risen 66.4% over the same period, as the discount has narrowed. Since 2013, the first full year Georgina was in charge, NAV total returns have been ahead of the index in four of the six full years, and in 2019 are so far ahead of the index again. The trust has done particularly well in the strongest rallies, such as in 2013 and 2017. The two down years were 2016 and 2018, both related to the Brexit referendum and aftermath.

The trust aims for capital growth, but it does have a progressive dividend policy, aiming to grow the dividend ahead of inflation each year. Over the past five years it has comfortably achieved this, with annualised growth in the payout of 10.2%, excluding special dividends. The historic yield is 2.5%, again excluding specials, which by definition may not recur. With specials included the dividend yield rises to 2.6%.

Georgina and Katen have reduced their gearing since the Brexit vote, and have been tending to run with a maximum of 5% of NAV in gearing, in recognition of the risks to the UK economy and currency from the ongoing Brexit negotiations. They have aimed to ensure the portfolio is not over-exposed to one outcome from the negotiations (i.e. a no-deal exit or a smooth transition).

Nevertheless, the sector and trust remain out of favour thanks to the Brexit issue, with JMF trading on a 12% discount, wider than the sector average of 9.7% and the trust’s one-year average of 7.4%. A change of broker in June 2019 is intended to help support marketing efforts to narrow the discount, although we understand that the board’s reticence to use buybacks to this end reflects its belief that while the Brexit negotiations are ongoing, the UK is likely to remain out of favour.

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.

Continue

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}}
?
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
{{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.
Need help?

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
Need help?
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.