Edison initiation on Jupiter UK Growth Invst Trust
While tilted to larger companies, most of the biggest FTSE 100 stocks are absent from the portfolio and the unconstrained approach means weightings diverge widely from the FTSE All-Share index benchmark, from a 12.3% overweight in general retailers to zero weights in oil & gas and utilities, as well as c 8% in non-UK stocks. There is a zero-discount management policy and the board views the investment strategy as highly scalable.
At 10 June 2016, JUKG's shares were trading at a 0.9% premium to cum-income NAV. The trust operates an active zero-discount management programme, with the aim of maintaining the share price at close to NAV. While buybacks have reduced the size of the trust in recent years, the board and managers expect that the new strategy will command sufficient interest to be able to grow the trust through new issuance in the future.
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