Investment trust JPMorgan Claverhouse (LON:JCH) lagged the benchmark in the six months to June 2026. Weakness in Serco (LON:SRP), Dunelm (LON:DNLM) and ICG (LON:ICG) impacted the fund’s relative performance.
However, the UK equity income trust’s long-term track record of outperformance remains intact. And its managers are positive on the prospects for the UK market, insisting the opportunity set ‘remains compelling’.
To learn more about JPMorgan Claverhouse, watch our Sharesify Podcast special featuring co-manager Anthony Lynch.
Lagging the benchmark
JPMorgan Claverhouse delivered a net asset value (NAV) total return of 6.6% for H1, underperforming the 7.2% rise in the FTSE All-Share Index. Relative performance benefitted from overweight positions in IT reseller Softcat (LON:SCT) and banking behemoth HSBC (LON:HSBA).
Unfortunately, the positive impact from these holdings was outweighed by weakness in Serco, Dunelm and ICG, which drove the relative underperformance.
The trust’s share price total return was better at 9.3% as the NAV discount narrowed to 2.6%. This reflected share buybacks as well as robust demand for the fund’s income and the merits of its quality bias in a choppy market environment.
Form is temporary, class is permanent
Despite the H1 blip, JPMorgan Claverhouse has still delivered a three year cumulative NAV total return of 57.6%, outperforming the benchmark’s 52.9%. And over 10 years, the cumulative NAV total return is 137%, ahead of the 128.9% from the index.
And as Victoria Stewart, chair, pointed out: ‘Over the 10 year period ended 30 June 2026, the company delivered an annualised return of 9.0% in NAV terms and 10.1% in share price terms, versus the benchmark return of 8.6% on the same basis, making it one of only four UK income-focused investment trusts to beat its benchmark over the past ten years.’
JPMorgan Claverhouse’s positive outlook
Managers Anthony Lynch, Katen Patel and Callum Abbot remain focused on building a portfolio of companies that combine attractive dividend yields today with strong prospects for future income growth. And they are still upbeat about the outlook for the UK market.
They explained: ‘Valuation discounts persist across a range of high-quality companies, corporate activity continues to highlight mispricing and there are multiple areas where we believe cash generation and dividend progression can remain robust even if the macro backdrop remains uneven.’
Buys and sells
During H1, two holdings, insurer Beazley and industrial REIT Segro (LON:SGRO), were the subject of premium-priced bids. JPMorgan Claverhouse’s largest new investment was non-life insurer Hiscox (LON:HSX), a purchase funded by the proceeds from the sale of Beazley.
In terms of disposals, Lynch, Patel and Abbott sold the holding in retailer Marks & Spencer (LON:MKS). ‘A year or so on from a major cyber-attack, the company has not regained the operating momentum that underpinned our original investment thesis’, said the managers.
‘Furthermore, persistent inflation and low consumer confidence mean the backdrop for the UK consumer is lacklustre and we concluded that capital could be deployed into more compelling opportunities elsewhere.’
JPMorgan Claverhouse remains a solid option for investors seeking robust total returns. While the trust trailed the benchmark in a tricky H1, its long-term record remains outstanding.
And Sharesify appreciates the balance struck between businesses already paying high and growing dividends and those with positive dividend growth prospects.
The trust is one of the Association of Investment Companies’ feted ‘Dividend Heroes’.
These are trusts that have consistently increased their dividends for 20 or more years in a row. In fact, JPMorgan Claverhouse has increased its dividend for 53 successive years, a record few trusts can match.
Over the decade to December 2025, the dividend grew from 21.5p to 36.2p. That is an increase of 68.4%, significantly above the 39.7% increase in CPI over the same period.
Disclaimer: The author James Crux has a personal interest in Marks & Spencer.
