JPMorgan Claverhouse Investment Trust PLC · LSE:JCH
JPMorgan Claverhouse Investment Trust — Shareholder Meeting (2024)
34 slides from JPMorgan Claverhouse Investment Trust's shareholder meeting presentation, Apr 30, 2024
Slide 1: JPMorgan Claverhouse Investment Trust plc
January 2023 JPMorgan Claverhouse Investment Trust plc 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 decisions.
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 ● 11 years industry experience – ● 41 years industry experience – 11 yea
Slide 3: Three exciting things about Claverhouse
JPMorgan Claverhouse Investment Trust plc Three exciting things about Claverhouse Invested wholly in the UK 51 consecutive years of Consistent performance dividend increases One of the cheapest developed markets The longest of any Investment trust Attractive long-term track record in the world (no u
Slide 4: A once in a lifetime valuation opportunity
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 1975 1981 1987 1993 1999 2005 2011 2017 2023 Source: J.P. Morgan Asset Management using data from MSCI
Slide 5: Claverhouse has grown its dividend for 51 years in a row
Dividends – Claverhouse has grown its dividend for 51 years in a row Compound dividend growth of 9% p.a. since 19721 vs inflation of 5.1% p.a.2 & UK dividend growth of 5.7% p.a.3 Annual dividend per share4 UK Equity Income Investment Companies5 1.2 Total DPS (p) 1.1 1.0 40 34.5 0.9 JPMorgan 35 33 Cl
Slide 6: Claverhouse has grown its dividend for 51 years in a row
Dividends – Claverhouse has grown its dividend for 51 years in a row Compound dividend growth of 9% p.a. since 19721 vs inflation of 5.1% p.a.2 & UK dividend growth of 5.7% p.a.3 FTSE All-Share dividend growth by year JPM Claverhouse Dividends vs UK Market Dividends % 50% 230 40% CPI JPM Claverhouse
Slide 7: 2023 Performance
2023 Performance 2023 performance Benchmark return 7.9% NAV 7.3% 12% Total Shareholder Return 2.9% Dividend increased to 34.5p: 51st consecutive annual dividend increase 7.9% 8% 7.3% 4% 2.9% 0% FTSE All Share Index NAV Total Shareholder return Source: J.P. Morgan Asset Management. Performanc
Slide 8: 15 months to March 2024 Performance
15 months to March 2024 Performance 10.0% 9.1% 9.3% Claverhouse NAV Benchmark 8.0% 6.0% 4.0% 4.0% 3.5% 3.2% 3.6% 3.1% 2.9% 2.0% 1.9% 1.5% 0.0% -0.5% -0.8% -2.0% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 December 2022 to March 2024 Source: J.P. Morgan Asset Management. Performance data has been calcula
Slide 9: 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 Total Claverhouse Total Return FTSE All Share Total Return Shareholder Annualised Return 250 46% Claverhouse 166% 8.4% FTSE All-Share 120% 6.7% 200 150 100 50 2012 2013 2014 2015 2016
Slide 10: Outperformance over most quarters
Outperformance over most quarters JPMorgan Claverhouse Investment Trust plc Quarterly excess returns vs. FTSE All Share Index 8% Post Euro Crisis Post “Brexit” Post Post Covid 6% “Taper Tantrum” 4% 3.5 3.5 2.8 3.0 3.1 2.6 2.0 2.3 2.0 1.5 1.7 1.7 1.5 2% 1.3 1.5 1.2 1.5 1.0 1.4 1.0 1.0 1.1 1.1 1.2 1.0
Slide 11: Performance attribution
Performance attribution JPMorgan Claverhouse Investment Trust plc Attribution summary Stock: 0.09 Sector: 0.98 for 1 year ending 31 December 2023 Benchmark FTSE All-Share Index (£) Sector attribution (%) Relative Stock Impact Top contributors weight (%) return (%) (%) Stock selection Asset allocatio
Slide 12: Process
Process 12 JPMorgan ASSET MANAGEMENT
Slide 13: Our barbell approach
Our barbell approach Growth Value Market share gainers Energy ● 3i, Intermediate Capital Group, Next. ● Shell, BP. ● Using scale, operational excellence and technology to gain ● Improving balance sheets, cash generative and attractive market share in fragmented markets. valuations. Defence Homebuild
Slide 14: 3i Group
3i Group Consistent NAV growth Value creation not recognized in the valuation NAV per share (£) 1 Year Forward Price to Book Ratio (x) 25 1.4 1.3 20 1.2 1.1 15 1 10 0.9 0.8 5 0.7 0.6 0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 24 Strong operational momentum Investment case Price
Slide 15: Next Plc
Next Plc Investment case UK real wage growth % change year on year, 3 month moving average ● An omni channel retailer with the market leading position in online and a top 5 position in the overall apparel market. 8 ● Management have done an exemplary job of navigating the evolving retail market. 6 ●
Slide 16: Portfolio positions
Portfolio positions JPMorgan Claverhouse Investment Trust plc Benchmark FTSE All-Share Index (£) as of 31 March 2024 Active and absolute sector positions Relative to benchmark (%) 7.0 6.0 5.8 6.0 5.0 4.0 3.5 3.0 3.0 2.0 1.5 1.0 0.0 -1.0 -2.0 -1.3 -1.5 -1.5 -1.5 -3.0 -2.4 Investment Aerospace Oil, Ho
Slide 17: Portfolio positions
Portfolio positions JPMorgan Claverhouse Investment Trust plc Benchmark FTSE All-Share Index (£) as of 29 February 2024 Top 10 overweight positions Top 10 underweight positions Portfolio Benchmark Relative Portfolio Benchmark Relative Stock Stock weight (%) weight (%) position (%) weight (%) weight
Slide 18: A core portfolio with a long and consistent track record
A core portfolio with a long and consistent track record JPMorgan Claverhouse Investment Trust plc Experienced team1 Consistency of dividend increases 2 Consistency of returns % of time portfolio outperformed over Total DPS (p) 40 rolling periods3 33 34.5 29 29.5 30.5 30 26 27.5 65% 23 19.5 20 21.5
Slide 19: Outlook
Outlook 19 JPMorgan ASSET MANAGEMENT
Slide 20: Global economy
UK Consumer: GTM UK 38/28 UK real wage growth Accumulated excess savings Global economy % change year on year, 3-month moving average % of 2019 GDP, relative to pre-pandemic savings rates 8 14 Forecast 6 12 4 10 2 8 0 6 -2 4 -4 2 -6 0 '10 '12 '14 '16 '18 '20 '22 '24 '20 '21 '22 '23 '24 US Eurozone U
Slide 21: Why pay more for the same type of global company?
Why pay more for the same type of global company? Shell vs. Exxon Mobil Diageo vs. Brown-Forman British American Tobacco vs. Philip Morris Fwd Price to Earnings (x) Fwd Price to Earnings (x) Fwd Price to Earnings (x) 14 30 16 12 14 25 29% discount 12 10 31% discount 20 10 54% discount 8 15 8 6 6 10
Slide 22: Equities
Global equity income GTM UK 50 Buyback and dividend yields % yield 7 6 Equities 5 4 3 2 1 0 -1 US Europe ex-UK UK EM Dividend yield Netbuyback Net buybackyield yield Source: Bloomberg, FTSE, LSEG Datastream, MSCI, S&P Global, J.P. Morgan Asset Management. US: S&P 500; Europe ex-UK: MSCI Europe ex-UK
Slide 23: Summary
Summary 23 JPMorgan ASSET MANAGEMENT
Slide 24: Summary
Summary Economics & geopolitics Stock market Claverhouse ● A challenging but improving ● UK equities trading at multi- ● 100% UK listed stocks economic backdrop generational lows ● Attractive long-term performance ● Geopolitical tensions remain high ● World class businesses trading ● Well supported
Slide 25: 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. 25
Slide 26: Appendix
Appendix JPMorgan 26 ASSET MANAGEMENT
Slide 27: Performance
Performance JPMorgan Claverhouse Investment Trust plc as of 31 March 2024 Annualised performance (%) Three Six One Three Five Ten Months Months Year Years p.a. Years p.a. Years p.a. NAV returns 4.0 7.6 9.9 5.6 4.6 5.3 Share Price returns 3.4 6.9 8.1 5.4 4.2 5.7 Benchmark returns 3.6 6.9 8.4 8.0 5.4
Slide 28: JPMorgan Claverhouse Investment Trust plc
JPMorgan Claverhouse Investment Trust plc Background Dividend ● Founded in 1963. Gross assets - £455 million ● 51 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: Portfolio characteristics
Portfolio characteristics JPMorgan Claverhouse Investment Trust plc Benchmark FTSE All-Share Index (Net) as of 31 March 2024 Key attributes Portfolio Benchmark Index holding breakdown 100% Beta 1.08 - 87.5 Portfolio Benchmark 90% 83.7 Number of holdings 67 566 80% Off benchmark (%) 1.1 - 70% Active
Slide 30: Investment philosophy
Investment philosophy We believe that attractively valued, high quality stocks with positive momentum outperform the market Is it a good Is it attractively Is the outlook business? valued? improving? We consider the quality of the We look at a company’s Assessing the operational company through its
Slide 31: Share price discount
Share price discount JPMorgan Claverhouse Investment Trust plc Premium/Discount to NAV (%) 10 8 6 4 2 0 -2 -4 -6 -8 -10 Apr 19 Oct 19 Apr 20 Oct 20 Apr 21 Oct 21 Apr 22 Oct 22 Apr 23 Oct 23 Fund Premium Fund Discount Source: J. P. Morgan Asset Management. Bloomberg. Data from 23 April 2019 to 19 Apr
Slide 32: 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 33: Investment objective and risk profile
Investment objective and risk profile JPMorgan Claverhouse Investment Trust plc (the Company) as at 31 March 2024 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 Compa
Slide 34: 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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