J.P. Morgan American Investment Trust – Annual Financial Report

JPMorgan American Investment Trust plc (the ‘Company’) announces its full year results for the 12-months ended 31st December 2024.

Highlights:

• NAV total return of +30.6% compared with +27.0% for the S&P 500 Index (in Sterling terms) (the ‘Benchmark’). Share price total return +32.6%.

• Outperformance driven by stock selection in the large cap portion of the portfolio, which represented 90% of the Company’s assets, while gearing was also additive.

• For five years cumulative ended 31st December 2024, NAV total return of +132.4% compared with +105.9% for the Benchmark. Share price total return +146.4%.

• Final dividend of 8.25p in respect of the year, taking the total dividend to 11.00p, an increase of 41.9%.

• Ongoing charge of 0.35% for the year, down from 0.38% reflecting the management fee structure, with assets over £1 billion charged at 0.25%.

• Buybacks of 4.9 million shares at a cost of £48 million and an average discount of 3.6%, while 1.4 million shares were issued at a premium to NAV, raising £14 million.

The Chairman, Robert Talbut, commented: 

“The full impact of the new administration’s policies has not yet emerged, but it is starting to create some uncertainties for companies, which in turn may not be entirely equity market friendly. However, the US economy still appears to be on a sound footing, with the potential of further interest rate declines over 2025 if inflation trends support this. In addition, corporate earnings are projected to grow strongly, and therefore overall, the Board shares the Manager’s optimism regarding the outlook for US equities over the medium term.

The Company’s long-term performance track record attests to the Manager’s ability to identify and capitalise on the most attractive investment opportunities, regardless of the prevailing investment climate. We expect this skill to continue manifesting itself in ongoing capital growth and outperformance for shareholders over coming years.”

The Portfolio Managers, Felise Agranoff, Jack Caffrey, Eric Ghernati, and Graham Spence, commented: 

“While we are encouraged by signs of improving growth prospects, we remain vigilant regarding potential risks that could induce volatility. These include ongoing geopolitical tensions and upcoming shifts in US trade, regulatory and fiscal policies. It is also possible that bond yields will have to rise to attract the funds needed to finance government debt. Any of these factors could trigger short-term market fluctuations.

We are committed to investing in high-quality businesses with strong competitive advantages, ensuring stability during uncertain times. Additionally, we aim to capitalise on market volatility by selectively identifying and seizing opportunities that align with our long-term investment goals. Overall, our strategy is to maintain a balanced approach, leveraging our insights and expertise to navigate the complexities of the market, while actively seeking opportunities for growth and value creation. We are confident this approach will continue to reward shareholders with strong capital growth over time.”