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Fund Profile


Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by JPMorgan Claverhouse. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

JCH’s consistency and pure UK equity exposure mark it out from its peers…

JPMorgan Claverhouse (JCH) last year marked its 50th consecutive year of dividend growth. A leading ‘dividend hero’, it has provided the longest stretch of dividend increases of any trust which invests solely in UK equities. This means that JCH shareholders get an undiluted exposure to a market that the managers currently believe is at a very attractive valuation on an international basis.

William Meadon and Callum Abbot are fundamental stock pickers, but are always mindful of risks. As we discuss in the Portfolio section, they avoid making big binary bets on sectors or styles, instead aiming to deliver outperformance of the index in a steady, risk-controlled manner irrespective of market conditions. This explains the barbell approach, which sees JCH’s managers investing in companies capable of significant growth, but on the other side of the portfolio, also those which are able to distribute significant cash dividends.

The consistent alpha generated by their approach is illustrated in the NAV Performance statistics since William took over in 2012. Since then, JCH has outperformed in 31 out of 45 quarters, and the majority of the 14 quarters in which JCH has underperformed have been when a significant and unforecastable macro event has occurred. The prevalence of these macro events has dented the recent performance track record, but over the long term, William and Callum have outperformed.

Discounts across the investment trust sector have widened of late. However, one specific factor has resulted in JCH’s premium rating giving way to a discount this year (see Discount section), and the legacy of that remains in play. JCH offers a historical yield of approximately 5.2%, materially better than the benchmark’s figure. It currently trades at a discount of approximately 5.5% and has an OCF of 0.64%.

Analyst's View

The strategy deployed by William and Callum has worked well over the long term, but outperformance over the medium and short term has been more difficult to achieve, given the turbulent macro conditions. The team have shown themselves adept at repositioning the portfolio to each new reality and, as we illustrate in the Performance section, periods post these macro events have historically seen good levels of subsequent outperformance from JCH. Active management and the design of the portfolio both contribute to this, so we see nothing to suggest that this pattern will not continue into the future.

JCH’s historical dividend yield at the current share price is 5.1%, which compares to the UK Equity Income peer group weighted average of 4.3%. This compares to the FTSE All-Share Index yield of 4.0% (Source: Bloomberg). Henceforth, we think shareholders should be reassured by the board’s stated dividend policy, which is to “seek to increase the total dividend each year and, taking a run of years together, to increase dividends at a rate close to, or above, the rate of inflation”.

At the current discount of 5.5%, investors might consider the shares attractive, given the potential for the shares to trade at a premium once again, assuming investor appetites return, combined with the potential for the board to protect the downside risks of the discount widening much further. In the meantime, JCH provides a low-cost (see Charges), actively managed exposure to UK equities, which are themselves relatively cheap by international standards.


  • High-dividend yield, with a strong track record of dividend growth, backed by a deep revenue reserve
  • Consistency of positive relative returns over long term
  • Portfolio balanced between growth and value, with UK market looking attractive by international standards


  • Typically higher gearing than peers, which can exacerbate downside as much as amplify the upside
  • Whilst the board is committed to buying back shares when the discount is wider than 5% in normal market conditions, there are no guarantees
  • UK stock market may remain at a discount to other markets indefinitely
Continue to Portfolio

Fund History

17 Apr 2024 Pretty, pretty, pretty good
Do investment trusts really protect capital and income against inflation? Let's take a look…
13 Dec 2023 In-come all ye faithful
Equity income could be a beneficiary of the higher interest environment, with trusts a good way to capture it…
04 Oct 2023 To gear, or not to gear...
We examine the impact that rising rates have had on fund managers' appetite for gearing as a means to spice up returns...
18 Sep 2023 Fund Analysis
JCH’s consistency and pure UK equity exposure mark it out from its peers…
16 Mar 2023 Diversity matters
We examine the effect of blending multiple funds within your regional allocation and find that – while the culture wars may rumble on elsewhere – the benefits of diversity for investors are unarguable…
09 Feb 2023 Fund Analysis
JCH is on track for half a century of consecutive dividend growth…
26 Oct 2022 Money for nothing
Debt measured at fair value has had a positive impact on NAV returns for a number of investment trusts this year...
27 May 2022 Fund Analysis
JCH’s steady and consistent dividend is complemented by the consistency of its relative performance…
11 May 2022 Catch a tiger by the tail
As inflation bites harder than it has for decades, we consider the best ways for investors to hang on to their capital...
15 Dec 2021 Dividends in the time of corona
Investment trusts have proven their worth during the pandemic, delivering dividend growth despite the turmoil…
24 Nov 2021 Fund Analysis
Steady outperformance and full exposure to the UK means JCH could be well-positioned for a second ‘Boris bounce’…
28 Apr 2021 The next value opportunity?
Two of our analysts debate whether Europe's improving vaccination programme will be the next opportunity for investors in their pursuit of returns...
24 Feb 2021 Fund Analysis
JCH’s FY 2020 dividend will increase by 1.7%, the 48th consecutive year of growth...
20 Jan 2021 Kepler's top-rated investment trusts for 2021
We update our annual quantitative ratings for investment trusts…
23 Nov 2020 Fund Analysis
JCH has bounced back from COVID-19 losses, and yields 4.9%…
05 Jun 2020 Deep impact
Audio and presentations from our conference this week, where fifteen of the world's best fund managers described a profoundly altered investment landscape...
13 May 2020 Braving the new world
Join 15 of the UK's best known fund managers at the Kepler Trust Intelligence Virtual Summit to find out how they see the world after the pandemic...
15 Apr 2020 Hold fast
Investment trusts' revenue reserves could make them a vital stronghold for investors facing UK dividend cuts of as much as 47%....
02 Apr 2020 Kepler Rated: JPMorgan Claverhouse
JCH has generated real dividend growth each year for two decades…
12 Mar 2020 The importance of buying earners*
Our analysis shows that the impact of dividend contributions on long term returns is anything but trivial...
20 Feb 2020 Fund Analysis
JCH has generated real dividend growth each year for two decades…
05 Dec 2019 Holding something in reserve
A sterling bounce poses a threat to UK dividends - we look at how UK equity income investment trust managers stand prepared…
02 Jul 2019 Fund Analysis
JPMorgan Claverhouse is a high conviction UK equity trust, which has handsomely outperformed its peers and index...
03 Oct 2018 We can be heroes
Our analysis has uncovered the trusts which have generated a solid income through thick and thin - without compromising other aspects of performance...
15 Aug 2018 The income edge
Last year saw investment trusts soar in popularity among both retail investors and wealth managers. We examine why this has happened, as well as the structural advantages of investment trusts for income-hungry investors...
13 Jun 2018 Still waters run deep
UK equity income trusts trade at a discount to their global-equity-income-focused counterparts, yet our research suggests this could be unjustified...
13 Jun 2018 Fund Analysis
JPMorgan Claverhouse invests in income-generating UK companies with a focus on those that provide consistent and growing dividends...
20 Nov 2017 Thin ice...
Our analysis shows the extent to which funds in the UK equity income sector are concentrated on just a few dividend paying stocks…
08 Nov 2017 Straight talking...
Bronwyn Curtis OBE, chairman of JPMorgan Asian, tells us why making the tough decisions and addressing the elephant in the room are her forte...
13 Sep 2017 Big Issue(rs)
We highlight the UK equity trusts that have issued and bought back the most shares over the course of 2017 so far and how these actions have affected shareholders...
12 Jun 2017 MAYDAY!
As the Conservative party founders, we examine the impact of last week’s disastrous election on trusts...
11 May 2017 Storm proofing...
Our research shows dividend cover among UK equity income trusts is at its highest level in decade...
31 Mar 2017 JPMorgan Emerging Markets Investment Trust
A large, well resourced trust offering very broadly diversified exposure to the world's emerging markets...
26 Apr 2016 Analysts welcome Mercantile results
Analysts at Winterflood Securities think The Mercantile Investment Trust is an attractive alternative for investors seeking smaller companies exposure on its current discount.
18 Mar 2016 Results roundup: Murray International and JP Morgan Claverhouse
Analysts at JPMorgan Cazenove say Murray International is through the worst after a strong start to the year, and JP Morgan Claverhouse remains a core holding for Winterflood Securities.
05 Feb 2016 Fund Analysis
A large cap focused trust with a high conviction stock picking approach, which aims to generate capital growth and income via a portfolio of UK equities.
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