Jupiter US Smaller Companies has reported that the net asset value increased by 15.7% in the twelve months to 30 June 2017.

This compares to a rise of 26.5% for its benchmark, the sterling adjusted Russell 2000 Index.

Since the current manager took over the management of the Company's portfolio, the NAV per share has risen 301% compared to 237% for the benchmark and since the Company's formation in March 1993, the NAV per share has increased 844% compared with a gain of 591% for the benchmark.

The Company added:

"The Company takes a risk averse approach to investment and aims to achieve long term capital growth with capital preservation. This approach was successful in preserving capital during the bear market of 2008 and adding value in the early years of the economic recovery (2009-12).

"To achieve this the Company avoids areas of the stock market that are high risk, such as technology and biotech, as well as shares that we believe to be expensive. As a result of taking this approach, asset value growth failed to match the growth in the index. In the year under review, the Russell 2000 Technology sector rose 41% in sterling terms, an exceptional performance which contributed to the substantial increase in the Russell 2000 index.

"After a long year of low interest rates and a bond bull market that has pushed bond yields to unprecedented low levels, many growth stocks and so-called "bond surrogates" (stocks that move up and down with bonds, such as utilities and real estate) are now trading at what we believe to be unsustainable levels. Many US retail investors now use sector-specific Exchange Traded Funds to implement trend-following investment strategies and this kind of investing has exaggerated recent market moves.

"In the second half of the year, the market became disenchanted with the pace of the new US President's reflationary agenda and investors rotated into high risk stocks that appeared to offer visible growth, with the result that value stocks (those which are cheaper than average) underperformed in the last six months of the financial year. This meant that although the Company's NAV per share underperformed the benchmark by 5% in the second half of the year, it matched the performance of the Russell 2000 Value Index (the "value index")."




At 1:22pm: (LON:JUS) Jupiter US Smaller Companies Plc share price was -0.75p at 864.75p