JPMorgan Claverhouse Investment Trust Plc

UK Equity Income

New for 2019. A “classic get-rich-slow fund”

JPMorgan Claverhouse has grown its dividends, paid quarterly, by 7.1% a year over the past five years and it currently yields 4.2%. The investment trust has increased its dividend for the past 45 years running and is one of the Association of Investment Companies’ ‘dividend heroes’. It has enough revenues in reserve to meet dividend payments for the next 15 months.

William Meadon has managed the trust since 2012. He was joined by Callum Abbot in January 2018 after Sarah Emly, who had previously assisted him, died at the end of 2017.

The trust is style-agnostic: it combines both growth and value stocks, with the number of holdings typically between 60 and 80. It has almost 20% in financials, albeit this is still more than 6% lower than its benchmark, the FTSE All-Share index. It is marginally overweight in oil and gas. Royal Dutch Shell and BP are its largest holdings, accounting for 10% and 5% of the portfolio respectively.

In early 2018 the managers took the slightly unusual step of adding Scottish Mortgage investment trust to the portfolio. It is quite rare to see a conventional trust buy a position in the flagship fund of a rival group. However, Meadon wanted to increase exposure to technology and deemed buying the FTSE 100-listed trust a natural move, given its focus on disruptive, high-growth tech stocks and the few other options among standalone UK tech stocks.

Canaccord Genuity Wealth Management rates Claverhouse a “classic get-rich-slow fund”. Investment manager Patrick Thomas says: “You get a portfolio of companies trading at low valuations with strong balance sheets and high cash flow generation.”

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
JPMorgan Claverhouse Investment Trust Plc
Manager
JP Morgan Asset Management (UK) Ltd
Type
Closed Ended Investment Company
ISIN
GB0003422184
Sector
UK Equity Income
Launched
24/04/1963
OCF
0.75 %
Risk Rating
5
3 Year Sharpe
1.28
3 Year Alpha
5.74
Yield
3.8 %
Benchmark
FTSE All-Share
Fund Size
£ 401.98 million
NAV
747
Gearing
116
Discount Premium
-5
To provide a combination of capital and income growth from a portfolio consisting mostly of companies listed on the London Stock Exchange.
Holding %
Royal Dutch Shell PLC B 10.56 %
Debenture Stock 2020 7.33 %
BP PLC 5.77 %
Diageo PLC 5.72 %
HSBC Holdings PLC 5.62 %
GlaxoSmithKline PLC 5.05 %
Unilever PLC 4.48 %
AstraZeneca PLC 4.10 %
Rio Tinto PLC 4.07 %
JPMorgan Smaller Companies Ord 4.05 %
Region %
United Kingdom 97.83 %
Sector %
Financial Services 16.84 %
Consumer Defensive 16.80 %
Energy 16.11 %
Consumer Cyclical 13.53 %
Healthcare 9.52 %
Industrials 9.39 %
Basic materials 9.24 %
Name
JP Morgan Asset Management (UK) Ltd
Address
EC4Y 0JP, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Callum Abbot
Joined 01/25/2018
William Meadon
Joined 03/13/2012

William Meadon is a Portfolio Managers in JPMorgan’s London-based International Behavioural Finance Team. William Meadon managing director, is head of the Core team in the J.P. Morgan Asset Management European Equity Group. An employee since 1996, William was previously head of UK specialist pension funds at Newton Investment Management Ltd, responsible for pension funds and the Newton Higher Income Fund. Before this, he was a balanced pension fund manager. Prior to Schroders, William was articled to Peat Marwick (now part of KPMG). William obtained a BA (Hons) in Economics from the University of Nottingham and is a qualified Chartered Accountant.

Data provided by Morningstar.

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