53 years of consecutive growth: JPMorgan Claverhouse

JPMorgan Claverhouse (JCH) has rewarded patience since Anthony Lynch and Katen Patel joined long-standing manager Callum Abbot in July 2024, delivering NAV and share price total returns of 43.5% and 50.3% respectively, ahead of the FTSE All-Share’s 41.5%. Over the past year (to 24/08/2026), JCH delivered a NAV total return of 20.1%, edging out an already strong UK market, up over 19.6%, aided by overweight positions in NatWest, buoyed by resilient results and Softcat, which delivered strong results pointing to AI-driven revenue acceleration, prompting an earnings upgrade (see Performance section).

Given the recent market volatility, the managers took advantage, adding to a number of attractive names, including Softcat as well as switching part of the Imperial Brands position into British American Tobacco on a more favourable US regulatory outlook for next-generation nicotine products. Conversely, they exited M&S entirely amid weak UK consumer sentiment. Elsewhere, the portfolio benefitted from M&A. Inbound takeover activity, part of a UK market where bids surged past $231bn in the first half of 2026 alone, has been a supportive feature of the Portfolio’s year. Beazley, one of the trust’s non-life insurers, was bid for at a 60% premium, with proceeds recycled into a new position in Hiscox, whilst fellow holding Segro also received an approach, from Prologis.

On the Dividend front, JCH offers a 3.7% yield and has grown its dividend for 53 consecutive years, comfortably ahead of inflation throughout, cementing its place among the top ten of AIC Dividend Heroes. The trust looks on track for a 54th, with the board having so far held to its stated intention to raise interim dividends for FY26, supported by substantial total distributable reserves.

At the time of writing, JCH trades at a 1.1% Discount, below its near 3.9% five-year average.

We think the case for UK equities is strong right now. The market has performed well since 2025, outpacing most other major global markets, yet still trades at a discount to them, on a price-to-earnings multiple of around 12.7×. This isn’t going unnoticed either; foreign bidders are recognising the value on offer with UK-targeted bids surpassing $231bn in the first half of 2026, up 210% year-on-year, with foreign acquirers accounting for around 86% of that by value. Dividends have also been running at record levels, adding a further layer of appeal for income investors.

JCH, in our view, is particularly well suited to access this potential. Its income record is a strong starting point, backed by a well-diversified portfolio where dividends come from across the book rather than a handful of names. Capital growth has also improved, aided by the manager’s refined approach, which has widened the pool of both capital and income drivers available to the portfolio, backed by managers well versed across the market-cap spectrum. Together, this has boosted performance, with JCH outpacing FTSE All-Share since the new managers arrived, despite a smaller company allocation being out of favour.

That said, there are near-term risks worth considering. Renewed inflation, a stickier rate path and fiscal credibility questions tied to prime ministerial churn could potentially weigh on sentiment moving forward. But on balance, we think JCH offers a compelling package: a competitive yield, an exceptional dividend track record and experienced stockpickers, wrapped around genuine, undiluted exposure to a UK market that looks unusually well supported right now.