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JPMorgan Claverhouse makes 49th year of increasing annual dividend as chair retires

JPMorgan Japanese outperforms the benchmark for the year

JPMorgan Claverhouse makes 49th year of increasing annual dividend as chair retires – JPMorgan Claverhouse (JCH) has posted its annual financial report for the 12 months to 31 December 2021. During the period, the company’s net asset total return (based on debt being valued at par) was 21.5%, compared with a total return of 18.3% from its benchmark.

The board has declared a fourth quarterly interim dividend of 9.50p per share which will bring the total dividend per share for the year to 30.5p. This represents the 49th successive year in which the dividend has been raised and is an increase of 3.4% over the previous year. Revenue for the year to 31st December 2021 increased to 30.8p per share.

During the year the discount to net asset value, with debt at fair value at which the shares traded ranged from a premium of 1.4% to a discount of 2.4%. As a result, over 2021, the company has re-sold 513,290 shares from treasury and issued 835,000 new shares at a time when the shares were trading at a premium.

At this year’s AGM in April, the company will be seeking renewed authority from shareholders to sell shares from treasury at a discount, to issue new shares and to repurchase shares. 

Statement from the chair:

While the worst of the Covid pandemic appears to have passed, at least in the UK, the effects of it on businesses and the economy will continue for some time. There are additional risks that we now face, including increasing inflation, interest rate rises and, most recently, the terrible conflict in Ukraine which could have material and mid to long-term implications for global businesses and economies.

There will be corporate winners and losers in the volatile markets that lie ahead and I am sure that the Investment Managers will be cautious in constructing and managing the portfolio, while working hard to seek out the winners and restrict exposure to the losers.

I have been a Director of the Company since 2013 and have served as Chairman since 2015. In line with corporate governance best practice I shall retire from the Board at the conclusion of the AGM on 29th April 2022.

The Board has agreed that David Fletcher will succeed me as Chairman. Jill May will replace David as the Senior Independent Director and Nicholas Melhuish will take over as Audit Committee Chair. Victoria Stewart will assume the position of Remuneration Committee Chair. The Board has engaged a recruitment consultant to search for a suitably qualified additional Director to join the Board in due course.

As this is my last Chairman’s statement before retiring, I would like to conclude with some personal observations. Some years ago Claverhouse was one of the first investment trusts I invested in, paying a modest amount each month into the savings scheme then provided by the Manager. Regular investing is said to involve a pound-cost averaging investment strategy, whereby one buys into the market at different times and as a result averages out the cost. It is said that pound-cost averaging can smooth returns in investment markets that constantly move up and down.

While each investor must decide their own investment criteria and considerations, I believe that my long-term investment in the Company has been good, in that it has out-performed the benchmark over the relevant period, and has benefitted from the “get rich slow” attribute that has sometimes been given to the Company’s investment strategy. The increases in dividends paid by the Company over 49 years have also been of attraction to those investors seeking regular and growing income.

I would like to thank my fellow directors for their support and contribution during my time on the Board and, as someone who intends to remain a shareholder for the foreseeable future, I wish the Company’s fortunes well.

JCH : JPMorgan Claverhouse makes 49th year of increasing annual dividend as chair retires 

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