The Jupiter Primadona Growth Trust has adopted a zero discount policy to support its share price.
Over the past year the trust’s discount has averaged 7.9%, despite strong performance. Its share price total return over the past 12 months has been 24.6%, compared with an average of 14.5% from its AIC Global sector.
‘The board believes that this commitment to the active removal of discount risk will provide materially improved liquidity for both buyers and sellers of the company’s shares,’ said Tom Bartlam, the trust’s chairman.
On that side of the portfolio the managers have recently rejigged their exposure to the US, taking profits from two of their best investments over the past year, AXA Framlington American Growth and Findlay Park American.
They allocated the proceeds to the small and mid cap focused Hermes US Smid Equity fund and to the PowerShares Buyback Achievers exchange-traded fund, which tracks US companies that actively buy back their shares.
‘This switch increases not only the income for the company but also its exposure to the cash-generative growth companies at the forefront of the US economic recovery,’ explained Curling and Pound.