jpmorgan european smaller companies trust plc annual ... · recommendation to buy or sell. past...
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FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
June 2016
JPMorgan European Smaller Companies Trust plc
Annual General Meeting
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1 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
European smaller companies
Source: J.P. Morgan Asset Management, Thomson Reuters Datastream. All series are rebased to 100 as at 31 December 1994 to 31 May 2016. All indices in GBP and include reinvested dividends. Indices do not include fees or operating expenses and are not available for actual investment. Past performance is not an indication of future performance.
… European small caps have produced long term equity returns amongst the best in the world
Cumulative returns
0
100
200
300
400
500
600
700
800
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Euromoney Smaller European Companies (ex UK) Index S&P 500 Index
FTSE All Share Index MSCI Asia (ex Japan) Index
MSCI Emerging Markets Index MSCI Europe (ex UK) Index
Topix Index
A compelling long asset class
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2 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
JPMorgan European Smaller Companies Trust
... a proven track record through market cycles Source: Thomson Datastream, as at 31 May 2016. Chart shows Euromoney Europe Smaller Companies Index (light blue) and JPM Europe Smaller Companies Investment Trust NAV (dark blue) from 1994, rebased as of 31 December 1994. For illustrative purposes only. There can be no assurance that the professionals currently employed by J.P. Morgan Asset Management will continue to be employed by J.P. Morgan Asset Management or that the past performance or success of any such professional serves as an indicator of such professional’s future performance or success. Indices do not include fees or operating expenses and are not available for actual investment. Past performance is not necessarily a reliable indicator for current and future performance.
Jim Campbell 21 years at JPMAM, 28 years industry experience
Francesco Conte 18 years at JPMAM, 28 years industry experience
One of the longest track records in European small cap investing
Investment process focused on capturing change in operating momentum
Gearing provides opportunities to add value
Largest European smaller companies investment trust
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3 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
JPMorgan European Smaller Companies Trust
Source: J.P. Morgan Asset Management. As at 29 June 2016. The Investment Manager (Portfolio Manager) seeks to achieve the stated targets/objectives. There can be no guarantee the objectives/targets will be met. The Benchmark is a point of reference against which the performance of the Investment Trust may be measured. The Investment Trust may bear little resemblance to its benchmark.
Objective
– The Company aims to provide capital growth from a diversified portfolio of smaller European companies (excluding the United Kingdom). As the emphasis is on capital growth rather than income, shareholders should expect the dividend to vary from year to year. The company has the ability to use borrowing to gear the portfolio within the range of 20% net cash to 20% geared in normal market conditions
Policy
– To invest in a diversified portfolio of companies the majority of which, at the time of purchase, fall within the market capitalisation range of the benchmark index
Benchmark
– Euromoney Smaller European Companies (ex UK) Index (Total Return Net)
Net assets
– £495m
Gearing
– Current: 4.5% cash
Key characteristics
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4 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
14.4 15.6
8.8 9.4
12.6
5.6
10.3
5.9 6.5
9.1
-3.7
4.9 4.8 5.6
7.3
1 year 3 years (pa) 5 years (pa) 10 years (pa) 20 years (pa)
JPM European Smaller Companies Trust NAV (net of fees)Euromoney Smaller European Companies (ex UK) IndexMSCI Europe (ex UK) Index
JPMorgan European Smaller Companies Trust
Annualised returns 31 May 2016 (%)
Source: J.P. Morgan Asset Management. Performance data has been calculated on NAV to NAV basis, including ongoing charges and any applicable fees, with any income reinvested, in GBP. All indices in sterling and include reinvested dividends. Indices do not include fees or operating expenses and are not available for actual investment. Past performance is not necessarily a reliable indicator for current and future performance.
...asset class offers opportunity for significant alpha generation
Long term returns
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5 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Our investment philosophy
Attractively valued, high quality stocks with positive momentum outperform the market
Quality
Stocks that are attractively valued and are fundamentally sound Value
Profitable companies with sustainable earnings and disciplined capital management Quality
Stocks that are supported by positive earnings momentum and positive price momentum Momentum
The above are shown for illustrative purpose only and are subject to change without notice. The Investment Manager (Portfolio Manager) seeks to achieve the stated targets/objectives. There can be no guarantee the objectives/targets will be met.
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6 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Source: J.P. Morgan Asset Management 8 June 2016. The companies/securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. J.P. Morgan Asset Management may or may not hold positions on behalf of its clients in any or all of the aforementioned securities. Past performance is not necessarily a reliable indicator for current and future performance.
VALUE QUALITY MOMENTUM
Attractively valued, high quality stocks with positive momentum outperform the market
Themes:
- Cyclical recovery
- High yielding stocks in a low interest rate environment
- Out of favour stocks with catalysts
Themes:
- Market leaders
- Cash generative businesses
- Focus on capital allocation
- Shareholder returns
Themes:
- Domestic consumption
- Disruptive technology
- Secular growth
- Acquisition roll-up strategy
Stock examples:
- CIE Auto
- Intrum Justitia
- Ipsos
- YIT
Stock examples:
- Amplifon
- Brembo
- Royal Unibrew
- Salmar
Stock examples:
- Fastighets Balder
- Huhtamaki
- NetEnt
- Sartorius
Rigorously identifying stocks with specific style characteristics
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7 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Buy discipline Focus on market leaders
Sustainability of earnings momentum
Identify catalysts
Avoid value traps
Sanity check
Conviction and liquidity drive sizing
Sell discipline Run winners
Fundamental change in business prospects
Market cap significantly exceeds maximum in benchmark
Raising cash for a better idea
Fundamental analysis
Source: J.P. Morgan Asset Management 31 May 2016. The targets and aims provided above are the Investment Manager’s targets and aims only and are not necessarily part of the Fund’s investment objectives and policies as stated in prospectus. There is no guarantee that these will be achieved.
... capturing change in operating momentum
Ongoing engagement with corporate management
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8 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Sector active exposure over time & current positioning
JPMorgan European Smaller Companies Trust
Source: J.P. Morgan Asset Management as at 30 April 2011 to 31 May 2016 using monthly data. The Trust is an actively managed portfolio, holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. Past performance is not an indication of current and future performance.
A dynamic approach to finding attractive investment opportunities
-10.0
-5.0
0.0
5.0
10.0
15.0
Aero
spac
e &
Def
ense
Auto
mob
iles
& P
arts
Bank
s
Beve
rage
s
Che
mic
als
Con
stru
ctio
n &
Mat
eria
ls
Elec
trici
ty
Elec
troni
c &
Ele
ctric
al E
quip
men
t
Equi
ty In
vest
men
t Ins
trum
ents
Fina
ncia
l Ser
vice
s
Fixe
d Li
ne T
elec
omm
unic
atio
ns
Food
& D
rug
Ret
aile
rs
Food
Pro
duce
rs
Fore
stry
& P
aper
Gas
, Wat
er &
Mul
tiutil
ities
Gen
eral
Indu
stria
ls
Gen
eral
Ret
aile
rs
Hea
lth C
are
Equ
ipm
ent &
Ser
vice
s
Hou
seho
ld G
oods
& H
ome
Con
stru
ctio
n
Indu
stria
l Eng
inee
ring
Indu
stria
l Met
als
& M
inin
g
Indu
stria
l Tra
nspo
rtatio
n
Leis
ure
Goo
ds
Life
Insu
ranc
e
Med
ia
Min
ing
Mob
ile T
elec
omm
unic
atio
ns
Non
life
Insu
ranc
e
Oil
& G
as P
rodu
cers
Oil
Equi
pmen
t, Se
rvic
es &
Dis
tribu
tion
Pers
onal
Goo
ds
Phar
mac
eutic
als
& B
iote
chno
logy
Rea
l Est
ate
Inve
stm
ent &
Ser
vice
s
Rea
l Est
ate
Inve
stm
ent T
rust
s
Softw
are
& C
ompu
ter S
ervi
ces
Supp
ort S
ervi
ces
Tech
nolo
gy H
ardw
are
& Eq
uipm
ent
Toba
cco
Trav
el &
Lei
sure
Max underweight Max overweight CurrentActive exposure (%)
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9 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Building an unconstrained small cap portfolio
Source: J.P. Morgan Asset Management, FactSet, as of 28 June 2016. Figures reported are weighted medians. Figures shown are Value = Free Cash Flow Yield, Quality = return on equity (ROE), Momentum = 3 month historic earnings per share revisions. Index relates to the Investment Trust benchmark which is Euromoney Smaller European Companies ex UK Index (Net).
Consider a broad
investment universe
JPMorgan European Smaller Companies Trust
Fund Index Value eg FCF Yield 4.9% 4.3%
Quality eg ROE 16.8% 12.0%
Momentum eg EPS mom. 2.6% 0.0%
One or more desirable style characteristics:
Attractive value
High quality
Positive momentum
Identify stocks
Invest in our best ideas to maximise
exposure to the styles we seek.
Portfolio constraints
Stocks None Sectors Max. 35% Countries None
Construct
portfolio
… attractively valued, with high quality and positive momentum
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10 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Source: FactSet. The Investment Trust is an actively managed portfolio, holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. The companies/securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. J.P. Morgan Asset Management may or may not hold positions on behalf of its clients in any or all of the aforementioned securities. Past performance is not necessarily a reliable indicator for current and future performance.
Attribution: Major stock and sector contributors to returns – 12 months to 31 May 2016
JPMorgan European Smaller Companies Trust
Key sectors Key stock contributors
Faiveley Transport (o), Sartorius (o)
Netent (o), Paddy Power Betfair Plc (o)
Saipem (u), Seadrill (u)
Ubisoft Entertainment (o)
Trigano (o)
Key stock detractors
Melexis (o)
Flow Traders Nv (o)
Fingerprint Cards (u), Saft Groupe (o)
Elis (o)
Sartorius Stedim Biotech (u)
-2.0% -1.0% 0.0% 1.0% 2.0% 3.0%
Health Care Equip. & Serv. (u)
Support Services (o)
Electronic & Elec. Equip. (o)
Financial Services (o)
Tech. Hardware & Equip. (u)
Autos. & Parts (o)
Leisure Goods (o)
Oil Equip., Serv. & Distn. (u)
Travel & Leisure (o)
Industrial Engineering (o)
Stock selection
Asset allocation
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11 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Recent additions
Leader in premium writing pads Develop global distribution platform High single digit organic growth
Moleskine
Share price (EUR) EPS (EUR)
Source: Datastream, J.P. Morgan Asset Management. Data as at 16 June 2016. The companies/securities above shown are for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. Past performance is not necessarily a reliable indicator for current and future performance. J.P. Morgan Asset Management may or may not have positions on behalf of its clients in any or all of the aforementioned securities. EPS denotes Earnings per share.
0.08
0.09
0.10
0.11
0.12
0.13
0.14
0.9
1.1
1.3
1.5
1.7
1.9
2.1
2.3
Dec-2013 Dec-2014 Dec-2015
Price (LHS)12m forward EPS (RHS)
Leading market research provider Restructuring product offering Considered very cheap following disappointing few years
Ipsos MORI
Share price (EUR) EPS (EUR)
2.30
2.40
2.50
2.60
2.70
2.80
2.90
15.017.019.021.023.025.027.029.031.033.035.0
Dec-13 Jun-14 Dec-14 Jun-15 Dec-15
Price (LHS)12m forward EPS (RHS)
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12 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Recent additions
Source: Datastream, J.P. Morgan Asset Management. Data as at 16 June 2016. The companies/securities above shown are for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. Past performance is not necessarily a reliable indicator for current and future performance. J.P. Morgan Asset Management may or may not have positions on behalf of its clients in any or all of the aforementioned securities. EPS denotes Earnings per share.
Share price (EUR) EPS (EUR) Share price (EUR) EPS (EUR)
World leader in premium brakes We consider the company to have very high quality growth Developing rapidly in US
World leader in vehicle glass repair New management restructuring We consider the company to be very cheap
Brembo D’Ieteren
1.4
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
3.2
15
20
25
30
35
40
45
50
55
Dec-2013 Dec-2014 Dec-2015
Price (LHS)12m forward EPS (RHS)
2.3
2.4
2.5
2.6
2.7
2.8
2.9
3.0
3.1
25
27
29
31
33
35
37
39
41
43
45
Dec-2013 Dec-2014 Dec-2015
Price (LHS)12m forward EPS (RHS)
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13 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Source: J.P. Morgan Asset Management. The companies/securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. J.P. Morgan Asset Management may or may not positions on behalf of its clients in any or all of the aforementioned securities.
JPMorgan European Smaller Companies Trust Top 10 holdings as of 31 May 2016
Company Sector Weight (%)
Sopra Steria Digital transformation 3.0
OVS Fashion retailer 2.9
Aalberts Industries Industrial products 2.5
Intrum Justitia Credit management services 2.5
Intertrust Trust and corporate services 2.5
IMCD Specialty chemical distributor 2.4
Ipsos Advertising and marketing 2.0
Alten Technology consulting and engineering 2.0
Plastic Omnium Plastic manufacturing 1.9
NetEnt Online gaming software 1.9
Top twenty weighting 45%
Total number of holdings 63
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14 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Source: FactSet. The above portfolio characteristics are shown for illustrative purposes only and are subject to change without notice. The Investment Trust is an actively managed portfolio, holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice.
JPMorgan European Smaller Companies Trust
-10.0% -5.0% 0.0% 5.0% 10.0%
Real Estate
Banks
Pharma. & Biotech.
Electricity
Financial Services
Personal Goods
Industrial Engineering
Support Services
Autos. & Parts
Software & Comp. Serv.
Top / bottom active sector positions Top / bottom active country positions
-10.0% -5.0% 0.0% 5.0% 10.0%
Spain
Germany
Switzerland
Austria
Denmark
Sweden
Italy
Finland
Netherlands
France
Portfolio positioning as of 31 May 2016
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15 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Source: Thomson Reuters Datastream, J.P. Morgan Asset Management as at 31 March 2016. Index rebased to 100 at start of data series. * Index is Euromoney Smaller European Companies (ex UK) Index.
...active management of gearing a source of consistent value added
Since 2009 (quarterly)
50
100
150
200
250
300
80%
85%
90%
95%
100%
105%
110%
115%
120%
125%
Mar
09
Jun
09
Sep
09
Dec
09
Mar
10
Jun
10
Sep
10
Dec
10
Mar
11
Jun
11
Sep
11
Dec
11
Mar
12
Jun
12
Sep
12
Dec
12
Mar
13
Jun
13
Sep
13
Dec
13
Mar
14
Jun
14
Sep
14
Dec
14
Mar
15
Jun
15
Sep
15
Dec
15
Mar
16
JPMorgan European Smaller Companies Trust gearing (LHS)Euromoney Smaller European Companies (ex UK) Index (RHS)
Gearing versus the index as of 31 May 2016
JPMorgan European Smaller Companies Trust
Gearing (%) Gearing (%)
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16 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
European smaller companies
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Asian financial crisis
Russian financial crisis
.com bubble bursting
Global financial crisis
Eurozone sovereign debt crisis
Calendar year excess returns Euromoney Smaller European Companies (ex UK) Index vs. MSCI Europe (ex UK) Index
Source: J.P. Morgan Asset Management, Thomson Reuters Datastream, data from 31 December 1992 to 31 December 2015. All indices in EUR and include reinvested dividends. Indices do not include fees or operating expenses and are not available for actual investment. Past performance is not necessarily a reliable indicator for current and future performance.
Mexican financial crisis
Generally outperform in up markets
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17 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Global Purchasing Managers’ Index – manufacturing and services
30
50
70
2000 2002 2004 2006 2008 2010 2012 2014 2016
US services
30
50
70
2000 2002 2004 2006 2008 2010 2012 2014 2016
China services
30
50
70
2000 2002 2004 2006 2008 2010 2012 2014 2016
Eurozone manufacturing
30
50
70
2000 2002 2004 2006 2008 2010 2012 2014 2016
US manufacturing
30
50
70
2000 2002 2004 2006 2008 2010 2012 2014 2016
China manufacturing
30
50
70
2000 2002 2004 2006 2008 2010 2012 2014 2016
Eurozone services
Source: J.P. Morgan Asset Management, Bloomberg. Data as at 31 May 2016. PMI denotes Purchasing Managers’ Index. Data for China available from January 2014.
PMI
PMI PMI
PMI PMI
PMI
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18 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Eurozone M1 money supply
Share price (DKK) EPS (DKK) Money supply vs GDP expectations Money supply vs equities Money supply vs small cap rel perf(1)
-4%
-2%
0%
2%
4%
0%
4%
8%
12%
16%
2000 2004 2008 2012 2016
ECB M1 yoy %; advanced 6 mths (LHS)
Eurozone forecast 1 yr ahead GDP yoy % (RHS)
-60%
-30%
0%
30%
60%
0%
4%
8%
12%
16%
2000 2004 2008 2012 2016
ECB M1 yoy %; advanced 6 mths (LHS)
Stoxx 600 ex UK yoy % (RHS)
Money supply has historically been one of the most consistent leading indicators in Europe
Source: J.P. Morgan Asset Management, Bloomberg, MSCI. Data as at 31 May 2016. (1) Yoy change in the relative total return (net) performance of the MSCI Europe ex UK small-cap index vs MSCI Europe ex UK large-cap index. Indices do not include fees or operating expenses and are not available for actual investment. Past performance is not necessarily a reliable indicator for current and future performance.
-30%
-15%
0%
15%
30%
0%
4%
8%
12%
16%
2000 2004 2008 2012 2016
ECB M1 yoy %; advanced 6 mths (LHS)
MSCI Europe ex UK small vs large yoy change (RHS)
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19 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Brexit implications
Italian 2 year bond yield
%
Source: Bloomberg, as of 28 June 2016. Past performance is not necessarily a reliable indicator for current and future performance.
EUR/USD
EUR/USD
No contagion to periphery at present
1
1.05
1.1
1.15
1.2
1.25
1.3
1.35
1.4
1.45
1.5
-1
0
1
2
3
4
5
6
7
8
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20 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
European smaller company valuations
… valuations attractive v. large companies Source: European Quantitative Research, Citigroup Investment Research. Data as at 31 May 2016. Past performance is not necessarily a reliable indicator for current and future performance. *Price-To-Book is a ratio used to compare a stock’s market value to its book value. It is calculated by dividing the current closing price of the stock by the latest Quarter’s book value per share.
0.0
0.5
1.0
1.5
2.0
2.5
3.0
1996 1999 2002 2005 2008 2011 2014
Relative valuations – price/book* Absolute valuations – price/book*
Avg.
-1 Stdev
+1 Stdev
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
1996 1999 2002 2005 2008 2011 2014
Small Cap/Large Cap
+1 Stdev
-1 Stdev
Avg.
Cheap
Expensive Absolute price/book Relative price/book
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Summary
Source: J.P. Morgan Asset Management as 29 June 2016.
Exceptional alpha
generation in a world leading asset class
A common-sense investment philosophy,
rigorously applied
A team of 49 specialists,
backed by J.P. Morgan’s global
resources
Long-term outperformance
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Appendix
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Small cap investing rationale
Seeking strong absolute returns
Seeking strong risk adjusted returns
Seeking long term outperformance vs.
large caps
High Active Share
Large investment universe IPOs / M&A
Limited analyst coverage
Stock picking opportunities
Entrepreneurial management
Strong earnings growth
The targets and aims provided above are the Investment Manager’s targets and aims only and are not necessarily part of the Fund’s investment objectives and policies as stated in the prospectus. There is no guarantee that these will be achieved.
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24 | FOR PROFESSIONAL CLIENTS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
JPMorgan European Smaller Companies Trust
Source: J.P. Morgan Asset Management. Performance is gross of fees, data calculated NAV to NAV, in GBP. Gross fund returns are calculated from net returns by applying the ongoing charges, including operating & administrative expenses (O&A). The O&A fees are accrued at the maximum rate, according to what is stated in the fund prospectus. Where the O&A fees incurred are actually lower than the accrual, this would lead to a minor overstatement of gross returns. Net returns are not impacted. Past performance is not necessarily a reliable indicator for current and future performance.
Strong and consistent returns – quarterly excess returns to 31 March 2016
4.7 4.4
7.3
-1.3
2.6
0.4 0.7
3.3
0.5 1.8
-2.6
-0.6
2.6
5.4
-0.5
8.1
3.2
-10.9
0.2 1.3 0.6
2.2 1.2
4.8
-0.1
1.3
3.6
-1.4
-5.1
-1.8
2.7
0.5 2.1
-0.9
4.9 4.2
-0.5
-5.1
-3.0
6.9
3.1
0.5
6.1 4.7
-1.2
-15%
-10%
-5%
0%
5%
10%
Q1
2005
Q2
2005
Q3
2005
Q4
2005
Q1
2006
Q2
2006
Q3
2006
Q4
2006
Q1
2007
Q2
2007
Q3
2007
Q4
2007
Q1
2008
Q2
2008
Q3
2008
Q4
2008
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Excess returns versus Euromoney Smaller European Companies (ex UK) Net Index
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Equity trading – order flow management
Source: J.P. Morgan Asset Management as of 15 March 2016. *Based on number of fills by categorised venue in 2015. For illustrative purposes only.
Order
Automation 0 – 10% ADV
Quant driven rules engine, utilises custom built broker algorithms
Auto Routing Based on size and profile
MTFs Dark Pools Exchanges Central Risk
Books Primary Markets
Block Liquidity
The Market
Liquidity Trading Team 10 – 25% ADV
Specialise in programs, derivatives and orders too large to automate
Specialist Trading Team > 25% ADV
5 specialist traders, Mid/Small cap focus, liquidity driven
Access to over 120 brokers across 200+ fix destinations Trade across 217 venues Trade approximately 40% on primary, 35% on MTFs and 25% in dark pools*
... focus on minimising transaction costs and preserving alpha
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Source: Euromoney; as at 31 March 2016.
Euromoney Smaller European Companies (ex UK) Index Key characteristics
1,000 stocks across 15 markets
Market capitalisation range of £60m – £4.0bn
Back history from December 1985
Monthly geographic and sector analysis
Daily pricing on Bloomberg - JCSCEXPT Index
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J.P. Morgan Asset Management
For Professional Clients only – not for Retail use or distribution This is a promotional document and as such the views contained herein are not to be taken as an advice or recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all-inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the product(s) or underlying overseas investments. Both past performance and yield may not be a reliable guide to future performance. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment product(s), there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co and its affiliates worldwide. You should note that if you contact J.P. Morgan Asset Management by telephone those lines may be recorded and monitored for legal, security and training purposes. You should also take note that information and data from communications with you will be collected, stored and processed by J.P. Morgan Asset Management in accordance with the EMEA Privacy Policy which can be accessed through the following website http://www.jpmorgan.com/pages/privacy. Investment is subject to documentation (Investment Trust Profiles, Key Features and Terms and Conditions), copies of which can be obtained free of charge from JPMorgan Asset Management Marketing Limited. Issued by JPMorgan Asset Management Marketing Limited which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 288553. Registered address: 25 Bank St, Canary Wharf, London E14 5JP. 4d03c02a80037e2f