(Alliance News) - Jupiter US Smaller Cos PLC on Monday reported a rise in assets over the first half, outperforming its benchmark.
At December 31, Jupiter US Smaller's NAV per share stood at 1,232.61 pence, up 6.9% from 1,152.66p at June 30.
The trust's net assets rose to GBP164.3 million from GBP161.5 million six months prior.
The trust's benchmark - the Russell 2000 Total Return - gained 3.9% over the same six-month period.
Fund Manager Robert Siddles said: "The best contribution to performance came from The Pennant Group, which was spun out from The Ensign Group, one of the portfolio's largest holdings.
"America's Car-Mart has been a long term holding. The end of easy credit for new car purchases resulted in the company seeing a return of customers with better credit quality and, in the period, sales growth improved too. Palomar Holdings is a new stock. It specialises in underwriting earthquake insurance. It aims to grow via superior underwriting. It makes intensive use of technology and more detailed geographical data so that it can price more keenly on better risks and avoid worse ones. It is backed by a large bench of insurers. The market responded well to its strong profits growth."
Looking ahead, Siddles said smaller companies tend to fare worse in risk-averse markets - which is currently being experienced due to the ongoing spread of Covid-19. He noted the smaller companies sector is back at levels compared to large caps that have not been seen since 2003.
"The current period of market stress is likely to go on for a while longer: in a bear market, all news is bad news. However, once stocks bottom out, the recovery in the smaller company sector is likely to be much stronger than that of the general market," he added.
Shares in Jupiter US Smaller Cos closed 0.3% higher in London on Monday at 656.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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