IN FOCUS
FUND
TRUST
0%
Nov 14
Nov 13
Nov 12
Nov 11
Nov 10
Nov 09
Nov 08
Nov 07
Nov 06
Nov 05
-50%
MANAGER: Sarah Emly & William
Meadon
PREMIUM/DISCOUNT: -7.7%
LAUNCHED: 24/04/1963
ONGOING ANNUAL EXPENSES: 1.09%
Source: FE Analytics
10
FTSE All Share (58.88%)
60%
40%
20%
0%
-20%
-40%
-60%
Jun 15
50%
JP Morgan Claverhouse IT (67.62%)
IT UK Equity Income (62.06%)
80%
Jun 14
100%
100%
Jun 13
150%
PERFORMANCE OF TRUST VS SECTOR AND INDEX OVER
MANAGER TENURE
Jun 12
FTSE All Share (137.26%)
proxy” reputation, currently offer
significant yields: both Shell and
BP’s stand at above 7 per cent.
Not only have these blue chips
bolstered the trust’s yield, the
managers’ stock selection has
provided solid returns, with the
trust beating its FTSE All Share
benchmark over one, three, five
and 10 years, despite faring less
well against its IT UK Equity Income
sector average over one and five.
It has outperformed both of these
measures over Emly’s tenure,
providing a total return to investors
of 67.62 per cent.
JP Morgan Claverhouse
Investment Trust is 17 per cent
geared, trades on a 7.7 per cent
discount and has an ongoing charge
including a performance fee of 0.78
per cent.
Jun 11
200%
She was joined by co-manager
William Meadon six years later.
At the end of last month, however,
she took a leave of absence due
to health reasons, with Meadon
managing the fund by himself until
her return.
Both managers aim to provide
attractive levels of growth as well
as income, which they do primarily
through investing in companies
listed on the London Stock
Exchange.
While the trust’s benchmark is
the FTSE All Share index, it has a
bias towards income-generating
large-cap stocks, with Royal Dutch
Shell, British American Tobacco,
Lloyds Bank, Imperial Tobacco and
BP making up its top-five holdings.
These stocks, while making some
investors wary due to their “bond
Jun 10
Liontrust - Macro Equity Income (205.25%)
IA UK Equity Income (145.67%)
H
overing between the third
and second quartile over
one, three and five years
for its performance, the three FE
Crown-rated JP Morgan Claverhouse
Investment Trust may not seem
remarkable at first glance.
However, it has built up the
largest dividend reserves within
the AIC UK Equity Income sector,
according to data from Numis. This
allows the trust to cover future
pay-outs and, at the moment, it
has more than one year’s worth of
dividends put aside in preparation
for tougher times.
This stockpile, which currently
amounts to £11.64m, has helped it
to consistently increase its dividend
over the past 43 years. Data from the
AIC shows the trust has raised this
measure by an average of 4.2 per
cent a year over the past five years.
Investment trusts can retain
up to 15 per cent of their gross
annual income in order to smooth
dividends, a characteristic that
makes closed-ended funds more
appealing than their open-ended
counterparts to many incomeseeking investors.
Sarah Emly has managed JP
Morgan Claverhouse since 2006.
Jun 09
250%
Not only is this trust trading on a discount, but according to data from Numis, it has
the safest dividend in the UK equity income space
Jun 08
PERFORMANCE OF FUND VS SECTOR AND
INDEX SINCE LAUNCH
Nov 04
MANAGERS: Jan Luthman &
Stephen Bailey
FUND SIZE: £544m
LAUNCHED: 31/10/2003
OCF: 0.9%
record and the experience of the
management team are taken into
account.
Liontrust Macro Equity Income
has been the best performer in
the IA UK Equity Income sector
since Luthman and Bailey
launched it in October 2003,
beating the FTSE All Share by 70
percentage points in the process.
On top of that, it has also
beaten its benchmark in eight
out of the last 10 calendar years
and has been top quartile for its
risk-adjusted returns, annualised
volatility and maximum drawdown
over that time.
That’s the past, of course, but
Luthman and Bailey’s approach is
conducive for an investor with a
long-term horizon.
Nov 03
E
xperience is the trait valued
most in fund managers as,
having faced a variety of
differing conditions, there is the
belief that they are the bestequipped of their peers to deal
with whatever the market has to
throw at them.
There are many experienced
managers in the UK equity
income space – such as Neil
Woodford, Mark Barnett, Francis
Brooke and Adrian Frost – but
this m