(Alliance News) - Jupiter UK Growth Investment Trust PLC said Friday its full year assets fell sharply after shares in travel operator Thomas Cook Group PLC struggled, but remained upbeat about the potential to find good long-term investments.
For the year ended June, net asset value per share fell 14% to 292.9 pence from 340.5p the year prior. Shares in Jupiter UK Growth closed 269.64 pence in London on Friday.
The trust's net assets were hurt by a steep 90% fall in the share price of holiday operator Thomas Cook Group PLC during the period. In late September, heavily-indebted Thomas Cook entered compulsory liquidation after failing to seal last minute funding it required.
Jupiter UK Growth said it had significantly reduced its holding in the firm following the end of financial 2019. Consequently, at the time of its collapse in September it represented just 0.16% of net asset value.
In contrast, strong performances were recorded from biopharmaceutical firm PureTech Health PLC, credit data company Experian PLC and luxury sports car maker Ferrari SpA.
"We continue to focus on good stock- picking across the portfolio, whether that be large cap growth stories like Experian or less well-known holdings such as Puretech," Investment Adviser Steve Davies said.
"We continue to refresh the portfolio with new ideas too, with Diageo, Compass, Prudential and Avast added in the course of this financial year and two other new positions initiated since then," Davies added. "The funds for these purchases have come partly from the reduction in our UK domestic weightings, but also the proceeds of several holdings that have been bid for or taken private over the year, notably ZPG, Inmarsat and Merlin Entertainments."
Jupiter UK Growth proposed a 8.50 pence per share dividend, up from 7.00 the year prior.
"Given the extremely cheap valuations of UK equities, it is perhaps little surprise that those with a longer-term investment horizon (notably private equity) are buying such assets and that M&A activity in the UK is so high," Davies said. "We regard ourselves as similarly patient long-term investors and that is why the current environment, challenging as it is on day-to-day basis, represents such an exciting investment opportunity."
By Ahren Lester; ahrenlester@alliancenews.com
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