Despite a mixed geopolitical backdrop, investment trust JPMorgan Claverhouse (JCH) outperformed its FTSE All-Share benchmark in FY25. The portfolio benefitted from good stock-picking as well as overweight allocations to the aerospace and defence, banking and insurance sectors.
Furthermore, the total dividend for the year was increased by 2.3% to 36.2p. This marked the 53rd successive year of rising payouts from JPMorgan Claverhouse.
The trust is one of the Association of Investment Companies’ revered ‘Dividend Heroes’. These are trusts that have consistently increased their dividends for 20 or more years in a row.
To learn more about the fund, its process and portfolio, watch our Sharesify Podcast special featuring co-manager Anthony Lynch below.
Established in 1963, JPMorgan Claverhouse’ invests in attractively valued, high-quality UK companies with the ability to deliver consistent and growing dividends.
Performance drivers
The trust delivered an impressive net asset value (NAV) total return of 27.6% for FY25, outperforming the FTSE All-Share’s 24% return. The share price rose by 28.9%, leading to a further narrowing of the NAV discount from 5.6% to 4.9%.
The All-Share’s three best-performing sectors during 2025 were aerospace and defence, banks and insurance. JPMorgan Claverhouse benefitted from being overweight all three.
Relative performance was helped by overweight positions in Barclays (BARC) and NatWest (NWG), banks which performed well as interest rates remained higher for longer.
Outsourcer Serco (SRP) also contributed positively as the FTSE 250 firm received strong defence-related orders across the UK, US and Europe.
Relative performance also benefitted from the managers’ decision to shun drinks giant Diageo (DGE). The Johnnie Walker-to-Guinness maker faced ongoing destocking and weak consumer demand in North America.
New additions
Since assuming control of the portfolio, the new team of Lynch, Katen Patel and Callum Abbot have refocused the portfolio more towards dividend growth opportunities.
One of last year’s new additions was Softcat (SCT). The IT value-added reseller has increased the ordinary dividend at a 12% annualised growth rate over the past five years and paid a special dividend every year since IPO.
Last year, outright sales included housebuilders Barratt Redrow (BTRW) and Taylor Wimpey (TW.). The proceeds redeployed into Segro (SGRO) and LondonMetric Property (LMP).
Lynch, Patel and Abbot insist UK equities remain ‘attractively valued’. They observe that the UK is one of few global markets that does not look over-valued by historic standards.
‘We therefore see plenty of scope for attractive future returns, particularly if the momentum in sectors such as financials and defence can be sustained, or if earnings growth broadens out across the market,’ said the managers.
‘We are confident that the portfolio is very well-positioned to continue to meet its objective to deliver capital and income growth to its shareholders in coming years.’
JPMorgan Claverhouse is a solid option for investors seeking robust total returns.
We like the balance struck between businesses already paying high and growing dividends and those with positive dividend growth prospects.
Sharesify also notes that since 2015, JPMorgan Claverhouse’s dividend has increased by an inflation-busting 68.4%.
Learn more about JPMorgan Claverhouse here: https://am.jpmorgan.com/gb/en/asset-management/per/products/jpmorgan-claverhouse-investment-trust-plc-gb0003422184
You might also like these stories:
