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JPMorgan Claverhouse Investment Trust PLC on Tuesday said net asset value fell on a yearly basis, while it underperformed against its benchmark index. However, it still declared an increased total dividend for the year, for its 50th successive year. The UK equities-focused investor said its NAV per share on December 31 was 691.3 pence, down 12% from 782.4p. Shares in JPMorgan Claverhouse were down 0.1% to 669.50p in London on Tuesday at midday. It recorded a NAV total return, with debt at fair value, of negative 4.6%, compared to positive 0.3% for its benchmark index. Losses on investments and derivatives held at fair value in 2022 were £53.4 million, swinging from a gain of £67.2 million in 2021. It declared a fourth quarter dividend of 10.5p, taking the total 2022 dividend to to 33.0p, up 8.2% from 30.5p a year earlier. Chair David Fletcher described 2022 as ‘another very challenging year in general for investors’. ‘Just as it seemed that the worst of the pandemic was behind us, and the way was clear for economies to recover from the virus’ severe economic impact, Russia’s invasion of Ukraine in February 2022 dealt a fresh blow to the economic outlook and investor confidence,’ he said. Fletcher noted how this weighed heavily on financial markets, citing the MSCI Word Index losing 17.7% for the year and the FTSE All Share Index ‘dropping sharply’ during the first half of the year. However, he said the appointment of Rishi Sunak as UK prime minister in October ‘calmed investors’ jitters and the UK market experienced a steep recovery’. ‘This is clearly a disappointing result; however, it is important to understand that this underperformance occurred in the first half of the year, during the worst of the financial turmoil,’ Fletcher continued. ‘Portfolio performance improved in the second half of the year and the company outperformed its benchmark in this six-month period, recouping some of its underperformance, as market conditions steadied, and the portfolio changes implemented by the portfolio managers to strengthen its resilience to the year’s challenges began to pay off.’ Looking ahead, Fletcher said JPMorgan Claverhouse was cautiously optimistic. ‘The likelihood of recession in 2013 is already well-discounted by investors at current market levels and should sentiment continue to improve substantially investors may be further tempted by the attractive valuations of many UK stocks relative to their foreign peers,’ Fletcher said. ‘We are also positive about the company’s prospects. It is invested predominantly in large, high-quality, well-diversified FTSE 100 stocks, many of which are continuing to pay growing dividends. [...] Stocks offering high, predictable and rising income should continue to do especially well, benefiting our shareholders over coming years.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
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