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Stock Analysis & ValuationJPMorgan UK Small Cap Growth & Income Plc (JUGI.L)

Professional Stock Screener
Previous Close
£342.50
Sector Valuation Confidence Level
High
Valuation methodValue, £Upside, %
Artificial intelligence (AI)389.1214
Intrinsic value (DCF)136.21-60
Graham-Dodd Method7.27-98
Graham Formula1637.37378

Strategic Investment Analysis

Company Overview

JPMorgan UK Small Cap Growth & Income Plc (JUGI.L) is a close-ended equity mutual fund managed by JPMorgan Funds Limited, focusing on small-cap UK equities. Launched in 1990 and domiciled in the UK, the fund targets growth and income by investing across diversified sectors, benchmarking against the FTSE Small Cap (ex Inv Companies) Index. With a market cap of approximately £419 million, the fund leverages JPMorgan’s asset management expertise to identify high-potential small-cap companies, offering investors exposure to a dynamic segment of the UK market. The fund’s strategy combines capital appreciation with dividend income, appealing to investors seeking balanced returns in the Financial Services sector. Its historical performance and association with JPMorgan’s global resources enhance its credibility in the competitive asset management landscape.

Investment Summary

JPMorgan UK Small Cap Growth & Income Plc presents a compelling opportunity for investors seeking exposure to UK small-cap equities with a growth and income focus. The fund’s diversified sector approach and strong management under JPMorgan mitigate some risks associated with small-cap volatility. However, its beta of 1.112 indicates higher sensitivity to market swings, which may deter risk-averse investors. The fund’s dividend yield (15.04p per share) and solid net income (£99.7 million in FY 2024) underscore its income-generating capability. While its debt-to-equity ratio (~13.8%) is manageable, reliance on UK market performance poses concentration risks. Investors should weigh its growth potential against macroeconomic uncertainties, particularly Brexit-related impacts on UK small-caps.

Competitive Analysis

JPMorgan UK Small Cap Growth & Income Plc benefits from JPMorgan’s extensive research network and brand reputation, giving it an edge in sourcing and managing small-cap investments. Its focus on the UK small-cap niche differentiates it from broader market funds, though this specialization also limits geographic diversification. The fund’s benchmark alignment with the FTSE Small Cap Index ensures disciplined performance tracking. Competitors often lack JPMorgan’s global resource pool, but some rival funds may offer lower fees or more flexible strategies. The fund’s competitive advantage lies in its dual growth-income mandate, rare among small-cap-focused products. However, its closed-end structure could trade at discounts to NAV during market downturns, a risk open-ended funds avoid. Its £419 million AUM provides scale but may limit agility compared to smaller, more concentrated peers.

Major Competitors

  • Standard Life UK Smaller Companies Trust (SLS.L): Focuses exclusively on UK small-caps with a growth bias. Strengths include lower expense ratios and strong historical returns, but lacks JUGI.L’s explicit income focus. Managed by abrdn, it competes closely in stock selection but has less brand cachet than JPMorgan.
  • Henderson Smaller Companies Investment Trust (HSL.L): Larger AUM (£1.1bn) provides economies of scale but may reduce small-cap agility. Outperformed JUGI.L in some periods but carries higher volatility. Managed by Janus Henderson, it emphasizes capital growth over income, contrasting with JUGI.L’s balanced approach.
  • British Smaller Companies VCT (BSC.L): Venture capital trust targeting early-stage UK small-caps. Offers tax advantages but higher risk. Less liquid than JUGI.L and more niche, appealing to different investor segments. Doesn’t compete directly on income generation.
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