Our annual report summary series delivers a condensed analysis of a selected investment trust's annual report, including details of the trust's aim, investment style, portfolio focuses, gearing policy, charges and performance.
JUPITER UK GROWTH
Having changed its name to Jupiter Global Trust in November 2015, the former Jupiter Primadona Growth Trust changed its name again when it adopted a new remit in April 2016.
It is now called Jupiter UK Growth Trust (JUKG) and invests in a concentrated portfolio of mainly UK equities for capital appreciation. It has shareholder assets of £40 million.
Steve Davies, who heads Jupiter's UK equities team, was appointed manager in April 2016. He favours a high-conviction, bottom-up investment approach focused on 'recovery' and 'growth' stocks.
JUKG's portfolio has been reduced to 40 holdings. The top five, accounting for 26.7 per cent, are Lloyds Banking Group, Legal & General, Dixons Carphone, Barclays and TalkTalk Telecom Group.
Net asset value (NAV) total returns per share fell 14.7 per cent over the year, which was disappointing relative to the 5.5 per cent rise in JUKG's old benchmark, comprised of 75 per cent FTSE All-Share index and 25 per cent FTSE World ex UK index.
With JUKG's board using share buybacks and new issuance to keep the share price close to NAV, share price total returns were -14.6 per cent.
Last year's returns were severely impacted by sharp post-EU referendum setbacks for a number of the trust's holdings, notably banks and retailers, many of which have rebounded strongly since the year end.
Bolstered by special factors, last year's dividends totalled 7p. They are not indicative of the likely level of this year's single dividend.
See the full annual report on the Jupiter website
Subscribe to Money Observer Magazine
Be the first to receive expert investment news and analysis of shares, funds, regions and strategies we expect to deliver top returns, plus free access to the digital issues on your desktop or via the Money Observer App.Subscribe now