JPMorgan Claverhouse Investment Trust PLC · LSE:JCH
JPMorgan Claverhouse Investment Trust — Shareholder Meeting (April 2023)
35 slides from JPMorgan Claverhouse Investment Trust's shareholder meeting presentation, Apr 28, 2023
Slide 1: JPMorgan Claverhouse Investment Trust plc AGM 28th April 2023
January 2023 JPMorgan Claverhouse Investment Trust plc AGM 28th April 2023 William Meadon Callum Abbot Portfolio Manager Portfolio Manager Image source: J.P. Morgan Asset Management. This is a marketing communication. Please refer to the legal documents and the KID before making any final investment
Slide 2: Managers of JPMorgan Claverhouse Investment Trust plc
Managers of JPMorgan Claverhouse Investment Trust plc William Meadon Callum Abbot Managing Director Executive Director ● Head of UK Core Team ● Manager of Claverhouse since ● Manager of Claverhouse since January 2018 March 2012 ● 10 years industry experience – ● 40 years industry experience – 10 yea
Slide 3: Claverhouse has grown its dividend for 50 years in a row
Dividends – Claverhouse has grown its dividend for 50 years in a row Annual dividend per share growth of 8.8%1 since 1972 Russian invasion of Brexit Ukraine vote COVID-19 35 Global Financial European Crisis 30 Union Berlin Wall Formed Falls Peak of the David 25 Cameron tech bubble Falklands UK infla
Slide 4: Three exciting things about Claverhouse
JPMorgan Claverhouse Investment Trust plc Three exciting things about Claverhouse 50 consecutive years of Strong performance Invested wholly in the UK dividend increases The longest of any Investment trust A long term record of out-performance Cheapest developed market in the world invested just in
Slide 5: Dividend cover
Dividends – Claverhouse has grown its dividend for 50 years in a row Compound dividend growth of 8.8% p.a. since 19721 vs inflation of 4.9% p.a.2 & UK dividend growth of 6% p.a.3 JPM Claverhouse vs UK Market4 UK Equity Income Investment Companies5 1.20 230 CPI JPMorgan JPM Claverhouse Claverhouse UK
Slide 6: Performance
Performance ASSET MANAGEMENT
Slide 7: Performance of the current management team
Performance of the current management team Claverhouse share price vs the FTSE All-share return since March 2012 300 Claverhouse Total Return FTSE All Share Total Return Return Annualised 250 Claverhouse 150% 9.1% FTSE All-Share 96% 6.7% 200 Russia invades Ukraine 150 Brexit Covid-19 referendum 100
Slide 8: Review of 2022
Review of 2022 Share price total returns of Claverhouse vs major equity markets 10% JPM Claverhouse [GBP] FTSE All Share [GBP] MSCI EAFE [USD] S&P 500 [USD] 5% 0% 0% -5% -5% -10% -14% -15% -18% -20% -25% -30% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Source:
Slide 9: Narrowness of returns: UK Market in 2022
Narrowness of returns: UK Market in 2022 Percentage of stocks outperforming/underperforming the FTSE All-Share in 2022 FTSE All-Share FTSE 100 FTSE 250 FTSE Small Cap 40.0% 20.0% 31% 23% 21% 22% 0.0% -20.0% -69% -40.0% -77% -79% -78% -60.0% -80.0% -100.0% Source: Bloomberg as at 31 December 2022. Al
Slide 10: Performance
Performance JPMorgan Claverhouse Investment Trust plc as of 31 December 2022 Annualised performance (%) Three Six One Three Five Ten Months Months Year Years p.a. Years p.a. Years p.a. NAV returns 10.2 6.1 -7.5 0.1 1.7 7.4 Share Price returns 9.6 10.1 -5.1 1.2 3.5 9.1 Benchmark returns 8.9 5.1 0.3 2
Slide 11: Performance attribution
Performance attribution JPMorgan Claverhouse Investment Trust plc Attribution summary Stock: -4.99 Sector: -1.03 for 1 year ending 31 December 2022 Benchmark FTSE All-Share Index (£) Sector attribution (%) Relative Stock Impact Top contributors weight (%) return (%) (%) Stock selection Asset allocat
Slide 12: Process
Process 12 JPMorgan ASSET MANAGEMENT
Slide 13: Our barbell approach
Our barbell approach Growth Value Market share gainers Miners ● 3i, Softcat, Ashtead. ● Glencore, Anglo American. ● Using scale, operational excellence and technology to gain ● Focus on value over volumes has led to consistent high cash market share in fragmented markets. generation and returns to s
Slide 14: 3i Group (3.4% of the portfolio)
3I Group (3.4% of the portfolio) Consistent NAV growth Value creation not recognized in the valuation NAV per share (£) 1 Year Forward Price to Book Ratio (x) 20 1.4 1.2 15 1 0.8 10 0.6 5 0.4 0.2 0 0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q3 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20
Slide 15: SSE (3.5% of the portfolio)
SSE (3.5% of the portfolio) A company in transition Structural growth underappreciated by the market Operating Profit (£m) 1 Year Forward Price to Earnings (x) 100% 25 80% 20 60% 15 12.3x 40% 10 20% 5 0% 2015 2016 2017 2018 2019 2020 2021 2022 0 Renewables Networks Retail Wholesale Scotia Gas Networ
Slide 16: Portfolio characteristics
Portfolio characteristics JPMorgan Claverhouse Investment Trust plc Benchmark FTSE All-Share Index (Net) as of 31 March 2023 Key attributes Portfolio Benchmark Index holding breakdown 100% Beta 1.08 - Portfolio Benchmark 90% 86.3 83.7 Number of holdings 63 580 80% Off benchmark (%) 0.8 - 70% Active
Slide 17: Portfolio positions
Portfolio positions JPMorgan Claverhouse Investment Trust plc Benchmark FTSE All-Share Index (£) as of 31 March 2023 Active and absolute sector positions Relative to benchmark (%) 4.0 3.3 3.0 3.0 3.0 2.4 2.0 2.0 1.0 0.0 -1.0 -0.8 -1.1 -1.2 -2.0 -3.0 -2.6 -2.7 -4.0 Oil, Electricity Life Retailers Inv
Slide 18: Portfolio positions
Portfolio positions JPMorgan Claverhouse Investment Trust plc Benchmark FTSE All-Share Index (£) as of 31 March 2023 Top 10 overweight positions Top 10 underweight positions Portfolio Benchmark Relative Portfolio Benchmark Relative Stock Stock weight (%) weight (%) position (%) weight (%) weight (%)
Slide 19: Outlook
Outlook 19 JPMorgan ASSET MANAGEMENT
Slide 20: Developed Global economy
Global inflation GTM UK 6 Headline inflation Global economy % change year on year 2021 2022 2023 May May Aug Sep Aug Nov Dec Jun Sep Mar Dec Feb Nov Feb Mar Jun Jan Jan Apr Apr Oct Oct Jul Jul Eurozone 1.3 1.6 2.0 1.9 2.2 3.0 3.4 4.1 4.9 5.0 5.1 5.9 7.4 7.4 8.1 8.6 8.9 9.1 9.9 10.6 10.1 9.2 8.6 8.5
Slide 21: Attractive at a market level: a once in a lifetime valuation opportunity
Attractive at a market level: a once in a lifetime valuation opportunity 40% discount for MSCI UK vs. MSCI World MSCI UK vs MSCI World Average % Premium On PE, PBV & PDiv 10 0 -10 Median -20 -30 A persistent de-rating -40 -50 1974 1980 1986 1992 1998 2004 2010 2016 2022 Source: J.P. Morgan Asset Man
Slide 22: Attractive at a stock level: why pay more for the same type of global company?
Attractive at a stock level: why pay more for the same type of global company? Shell vs. Exxon Mobil Diageo vs. Brown-Forman British American Tobacco vs. Philip Fwd Price to Earnings (x) Fwd Price to Earnings (x) Morris Fwd Price to Earnings (x) 14 30 18 16 12 25 24% discount 14 45% discount 10 20 1
Slide 23: The UK stock market is highly correlated to value
The UK stock market is highly correlated to value FTSE All-Share vs MSCI World MSCI Global Value vs Growth 1.4 2.4 2.2 1.3 2 1.2 1.8 1.1 1.6 1 1.4 0.9 1.2 0.8 1 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: J.P. Morgan Asset Management using data from Bloomberg. Data
Slide 24: Summary
Summary 24 JPMorgan ASSET MANAGEMENT
Slide 25: The new investment landscape (post Ukraine)
The new investment landscape (post Ukraine) 1. The get rich quick era is over • A renewed focus on fundamentals • Need to take a long-term view of one’s investments 2. Valuation matters • UK is one of the cheapest developed stock markets 3. Secure income matters • Dividend income is likely to make u
Slide 26: John D. Rockefeller quote on dividends
John D. Rockefeller “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” - John D. Rockefeller Image source: Shutterstock. 26
Slide 27: Appendix
Appendix JPMorgan 27 ASSET MANAGEMENT
Slide 28: JPMorgan Claverhouse Investment Trust plc
JPMorgan Claverhouse Investment Trust plc Background Dividend ● Founded in 1963. Gross assets - £456 million ● 50 consecutive years of dividend growth ● Strong reserves ● UK only, FTSE All-Share benchmark ● 60 – 80 stocks: a “barbell” approach Performance since change in strategy (1 March 2012) ● Fl
Slide 29: What do we look for in a company?
What do we look for in a company? Is it a good Is it attractively Is the outlook Is the business business? valued? improving? sustainable? We consider the quality We look at a Assessing the We take into of the company through company’s valuation to operational momentum consideration a stock’s its pr
Slide 30: Integrating ESG into our investment process
Integrating ESG into our investment process Systematic consideration of financially material ESG factors* Systematically capturing our Our JPMAM Fundamental ESG Score is informed by ESG insights our proprietary research and Environment Fundamental company engagements. Our Insights analysts complete
Slide 31: Share price discount
Share price discount JPMorgan Claverhouse Investment Trust plc Premium/Discount to NAV (%) 10 Premium Discount 8 6 4 2 0 -2 -4 -6 -8 -10 Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb 18 18 18 18 18 19 19 19 19 19 19 20 20 20 2
Slide 32: Performance
Performance JPMorgan Claverhouse Investment Trust plc as of 31 March 2023 Annualised performance (%) Three Six One Three Five Ten Months Months Year Years p.a. Years p.a. Years p.a. NAV returns 1.5 11.8 -1.6 14.1 3.5 6.1 Share Price returns -1.7 7.8 -1.5 15.1 3.6 7.2 Benchmark returns 3.1 12.2 2.9 1
Slide 33: Gearing and Buy back / Issuance
JPMorgan Claverhouse Investment Trust plc Gearing Buy back / Issuance ● Debt ● Repurchase of shares at discounts ≥ 5% in normal − £30m 3.22% 2045 debenture (started March 2020) market conditions. Shares to be held in treasury − £80m facility @0.85% margin over SONIA (Sterling Overnight Index Average
Slide 34: Investment objective and risk profile
Investment objective and risk profile JPMorgan Claverhouse Investment Trust plc (the Company) INVESTMENT OBJECTIVE The Company aims to provide a combination of capital and income growth from a portfolio consisting mostly of companies listed on the London Stock Exchange. The Company’s portfolio consi
Slide 35: Important information
Important information This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken as advice or a recommendation, to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion
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