JPMorgan US Smaller Companies Investment Trust (JUSC) aims to provide investors with capital growth through a portfolio of US smaller companies. Don San Jose is the lead manager of the trust, supported by co-managers Dan Percella and Jon Brachle. Together they employ an active stock picking approach, looking for high-quality businesses that can perform strongly regardless of market conditions. Despite the focus on quality the managers will not overpay for growth, and a great deal of emphasis is placed on establishing the correct valuation. Currently the portfolio is comprised of 92 companies. The focus on quality has led the managers to concentrate on the larger end of the small-cap universe. The trust has limited exposure to technology and healthcare, unlike the majority of US trusts, and instead favours the likes of producer durables and consumer discretionary. JUSC has an exceptional track record relative to both peers and the benchmark Russell 2000 Index, outperforming the benchmark in nine of the past ten years. In fact the managers stand out for their alpha generation, compared to peers in both the large-cap and small-cap AIC North American sectors. The trust is currently trading at a historically wide discount of 11.8%, in contrast to its one year average discount of 3.9%.
