LONDON (Alliance News) - Jupiter US Smaller Companies PLC Thursday said its net asset value per share rose by 0.2% in the first three months of 2014, matching the performance of its benchmark.
NAV per share was 670.98 pence on March 31 on net assets of GBP161.3 million.
The trust's benchmark is the Russell 2000 Index adjusted for sterling.
"The best performing stocks that had most impact were pharmaceuticals manufacturer, Pernix Therapeutics, which experienced a turnaround as new management was put in place and fresh financing received; oil & gas contractor, Willbros Group, which announced good results; and Atlantic Tele-Network, where brokers raised their forecasts. Disappointing performance came from Conn's, where credit losses rose unexpectedly, and Chefs' Warehouse, after its recent acquisition disappointed," Robert Siddles, fund manager at Jupiter Asset Management Ltd, said in a statement.
"There were a number of new stocks acquired, of which the largest position was in Goodrich Petroleum, an oil and gas exploration company focusing on oil shales. Significant additions were made to Conn's and LKQ. Several stocks were sold in their entirety, including GATX, ICF International and Willbros Group," Siddles added.
"The recent correction in the market is healthy. The long-term outlook for the American economy looks relatively bright given the impact of cheap energy, its superior demographic profile and renewed manufacturing competitiveness," Siddles said.
The trust's objective is to achieve long-term capital growth by investing in a diversified portfolio primarily of quoted US smaller and medium-sized companies.
Jupiter US Smaller Companies shares were Thursday quoted at 626.00 pence, up 1.0%.
Meanwhile, Jupiter Dividend & Growth Trust PLC said its ordinary income share net asset value fell by 7.6% in the three months ended March 31, against falls of 1.5% in the FTSE All-Share Index and 1.2% in the FTSE 350 Higher Yield.
Common share NAV gained 1.7%, while zero dividend preference share NAV rose 1.7%.
"In our view, companies have not yet delivered the earnings increases needed across the board to justify some of the share price rises seen in 2013," Alastair Gunn, fund manager at Jupiter Asset Management Ltd, said in a statement.
"While much of the backwards-looking economic data has been negative, forward-looking indicators of potential economic growth have remained positive, in our view. In this uncertain environment, we continue to believe it likely that there will be a growing premium for companies that can deliver positive performance, especially where accompanied by consistent and growing dividends to investors," Gunn added.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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