Following a recent Morningstar Analyst Ratings Meeting, we have downgraded the JP Morgan Smaller Companies Investment Trust (JMI) to a Morningstar Analyst Rating™ of Bronze. The fund previously held a Silver rating. We continue to believe the fund has merit for investors seeking UK small-cap equity exposure, but we feel a Bronze rating provides a better reflection of our conviction in the fund at the current time. The fund’s process, in line with others managed by the JP Morgan European behavioural finance team, seeks exposure to companies with price and earnings momentum, value, and quality. However, the fund manager, Georgina Brittain, has had difficulty in obtaining the factor exposures sought by the process within the UK small-cap universe in recent years, which has slightly reduced our conviction here.
Find out more about how Morningstar analysts rate funds and investment trusts here.
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