19th Mar 2020 11:29
(Alliance News) - JPMorgan Claverhouse Investment Trust PLC on Thursday reported a rise in net assets in 2019, outperforming its benchmark, but warned of a challenging 2020.
At December 31, JPMorgan Claverhouse's NAV per share stood at 789.4 pence, compared to 655.4p at the same point the year before - which represents a 20% increase.
The trust's net assets also rose 20% over the 12-month period, growing to GBP448.1 million from GBP372.0 million.
JPMorgan Claverhouse declared a total dividend of 29.0p in 2019, up 5.5% from the 27.5p distributed in 2018.
As a result, the trust's total NAV return in 2019 was 25.3%, ahead of its benchmark - the FTSE All-Share index - which gained 19.1% in the same period.
The trust's Investment Managers William Meadon and Callum Abbot said: :"Claverhouse performed well throughout the year, benefiting from both good stock selection and maintaining double digit gearing levels for most of the period."
"Our risk controlled approach to sizing positions at a stock and sector level has helped deliver consistent returns. Since the change in management approach in 2012, the fund has outperformed in over 70% of quarters."
The top contributors during 2019 were JPMorgan Smaller Cos IT PLC, JD Sports Fashion PLC, Softcat PLC, Intermediate Capital Group PLC and Barratt Developments PLC.
Chair Andrew Sutch commented: "Since the end of your company's financial year, world stock markets have fallen significantly, principally because of concerns about the effect of the spread of the Covid-19 on the global economy; and as at March 16 the FTSE All-Share Index had fallen to 2,848.87, a fall of over 30% and its lowest level in almost eight years. It is clear that 2020 will be different and very challenging for the global economy and markets and thus for the company."
"The company has provided a regular, and over the last 47 years a rising, source of income for shareholders and the company's revenue reserves are amongst the strongest in its sector. With these attributes and the manager's risk-controlled approach to stock selection, I believe that the company should continue to outperform its benchmark index on a total return basis over the medium and long term," Sutch added.
Shares in JPMorgan Claverhouse Investment Trust were down 2.8% in London on Thursday at 460.00p each.
By Paul McGowan; [email protected]
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