Image source: Shutterstock

Highlights

  • Total return on net assets: +11.3%, underperforming the Russell 2000 Index (+13.3%).

  • Shareholder return: +18.7%, reflecting a narrowing discount.

  • Dividend declared: 3.1p per share, subject to shareholder approval.

  • Gearing level: 7.7%, with US$30 million drawn from borrowing facility.

  • Share buybacks: 3.05 million shares repurchased, reducing shares in issue by 4.66%.

 

JPMorgan US Smaller Companies Investment Trust plc (LSE:JUGI) has reported its final results for the year ended 31st December 2024, delivering a total return on net assets of +11.3%. While this was slightly below the Russell 2000 Index’s return of +13.3%, the Trust's shareholder return of +18.7% highlighted a narrowing of the discount at which its shares traded over the year.

Dividend & Portfolio Strategy

The Trust declared a dividend of 3.1 pence per share, which is subject to shareholder approval at the 2025 Annual General Meeting. This dividend is based on the income generated from its underlying portfolio.

Maintaining a gearing level of 7.7%, the Trust had US$30 million (£24.0 million) drawn from its borrowing facility, staying within its maximum gearing limit of 15%. 

Share Buybacks Enhance Shareholder Value

As part of its active share repurchase program, the Trust bought back 3,047,895 shares (equivalent to 4.66% of the shares in issue) at an average discount of 11.5%. This move was aimed at managing the discount to net asset value and enhancing shareholder returns.