Half-year Financial Report
Summary by AI BETAClose X
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN CLAVERHOUSE INVESTMENT TRUST PLC
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2026
Legal Entity Identifier: 549300NFZYYFSCD52W53
Information disclosed in accordance with DTR 4.2.2
The Directors of JPMorgan Claverhouse Investment Trust plc (the 'Company') announce the Company's results for the six months ended 30th June 2026.
Highlights:
· Net asset value (NAV) total return (with debt at fair value) for the six months ended 30th June 2026 was +6.6%, compared with +7.2% for the FTSE All-Share Index (the "Benchmark"). Share price total return for the period was +9.3%.
· Three-year cumulative NAV total return was +57.6% outperforming the Benchmark's +52.9%; three -year share price cumulative total return was +63.9%.
· Ten-year cumulative NAV total return was +137.0% outperforming the Benchmark's +128.9%; ten-year share price cumulative total return was +161.4%.
· First interim dividend of 8.50p paid on 1st June 2026; second interim dividend of 8.50p payable on 1st September 2026.
· The Company has increased its dividend for 53 successive years.
Victoria Stewart, Chair, commented:
"While performance over the six-month review period lagged the benchmark, the Company's track record of longer-term outperformance remains intact. Over the 10-year period ended 30th June 2026, the Company delivered an annualised return of +9.0% in NAV terms and +10.1% in share price terms, versus the benchmark return of +8.6% on the same basis, making it one of only four UK income-focused investment trusts to beat its benchmark over the past ten years.
The Board shares the Portfolio Managers' optimism about the outlook for UK equities and for your Company, especially as the market continues to offer many interesting, well-priced opportunities with attractive dividend yields and the prospect of future dividend growth. We are confident that the Portfolio Managers' ongoing focus on these opportunities should ensure the Company continues to provide shareholders with attractive returns and a growing income over the long term."
Anthony Lynch, Katen Patel and Callum Abbot, Portfolio Managers, commented:
"Regardless of current domestic and global uncertainties, we continue to focus on building a portfolio of businesses that combine attractive dividend yields today with strong prospects for future income growth. The opportunity set remains compelling: valuation discounts persist across a range of high-quality companies corporate activity continues to highlight mispricing and there are multiple areas where we believe cash generation and dividend progression can remain robust even if the macro backdrop remains uneven. We, therefore, remain confident that the portfolio is well positioned to continue meeting its objective of delivering capital and income growth for shareholders over the medium term."
CHAIR'S STATEMENT
Performance and Manager Review
The investment environment for UK stocks proved challenging over the six months ended 30th June 2026. Hostilities in the Middle East pushed up energy prices, raising fears of renewed inflationary pressures. At home, yet another bout of political uncertainty was triggered by Andy Burnham's ultimately successful bid to replace Sir Keir Starmer as the leader of the Labour Party and Prime Minister. Investors are particularly worried about the implications for the UK's fiscal position, as the Government is under mounting pressure to meet its defence spending commitments but may remain reluctant to tackle its burgeoning welfare bill. Together, these global and domestic developments deprived the UK economy of the momentum that seemed to be gathering at the end of 2025. However, on a more positive note, the same factors which underpinned significant UK market gains in 2025, namely persistently attractive valuations and a surge in mergers and acquisitions (M&A) activity, driven mainly by foreign inflows, continued to drive UK equities upwards in the first half of 2026. The Company's benchmark, the FTSE All-Share Index, rose 7.2% over this period.
The Company delivered a total return of +6.6% in NAV terms, modestly trailing the benchmark, while the value of the Company's shares rose 9.3% over the period. Relative performance was supported by sector allocation decisions but it was hurt by stock selection due to disappointing performance from a small number of portfolio holdings. The Investment Manager's Report on page 12 of the Company's Half Year Report for the six months ended 30th June 2026 ('2026 Half Year Report') discusses recent performance and portfolio changes in more detail and outlines the Portfolio Managers' view of the market outlook over the remainder of this year and beyond.
As at 30th June 2026, the Company's NAV per ordinary share (with debt at fair value) was 950.9p and the share price was 926.0p. Since the end of the review period, the NAV per ordinary share (with debt at fair value) has increased to 989.6p and the share price has risen to 974.0p as at 11th August 2026.
While performance over the six-month review period lagged the benchmark, the Company's track record of longer-term outperformance remains intact. Over the ten-year period ended 30th June 2026, the Company delivered a return of +9.0% in NAV terms and +10.1% in share price terms, versus the benchmark return of +8.6% on the same basis, making it one out of five investment trusts in the AIC UK Equity Income sector to beat the benchmark over the past ten years.
Revenue and Dividends
The Board's dividend policy seeks to increase the total dividend each year and, taking a run of years together, to increase dividends at a rate close to or above inflation. Your Company has realised both these objectives. It has increased its dividend for 53 successive years, a record which very few investment trusts have achieved. And over the ten years ended 31st December 2025, the dividend has increased from 21.5p per share to 36.2p per share, an increase of 68.4%, significantly above the 39.7% increase in CPI over this period.
For the financial year ended 31st December 2025, the total dividend was 36.20p (2024 total: 35.40p). This comprised three quarterly interim dividends of 8.40p and a fourth quarterly interim dividend of 11.0p. The first quarterly dividend for the current financial year was 8.50p per share (2025: 8.40p) paid on 1st June 2026 and it remains the Board's intention that the first three quarterly dividends for any given year should be of equal size. To this end, it has declared a second quarterly dividend of 8.50p per share to be paid on 1st September 2026. It is anticipated that a third dividend, also of 8.50p per share, will be paid in December 2026 and the fourth quarterly dividend will be announced in January 2027 and paid in March, in accordance with usual practice.
Although UK inflation has now fallen sharply from the 30-year high seen in October 2022, the Board continues to monitor closely the outlook for portfolio dividend income and will draw prudently on revenue reserves, if necessary, to assist the Company to meet its dividend policy objectives and deliver a smooth dividend profile. This is a benefit of the investment trust structure. The total dividend for 2025 was supplemented in this manner. The first two quarterly dividends for 2026 will be fully funded by net revenue generated in the period. Portfolio revenue per share for the six months to 30th June 2026 was 23.25p, compared with 18.96p earned in the same period in 2025, but this is partly a function of the portfolio's cashflow profile and portfolio income during the second half of the year is not expected to cover dividend payments related to this period. However, the Company's revenue reserves remain substantial, having been accumulated over a number of years. After the payment of the second quarterly dividend for 2026, the revenue reserve will total £14.0 million, compared to £13.2 million at 30th June 2025. In addition to revenue reserves, the Company also has other distributable reserves of £291.1 million, giving the Board further confidence that the Company can continue to fulfil its dividend policy objectives.
As I have previously stated, your Board is committed to returning the Company to a fully covered dividend over time, eliminating the need to draw on reserves. Income generated by the portfolio is the key to achieving this goal and the Board welcomes the Portfolio Managers' ongoing efforts to enhance income generation by adding more investee companies with positive dividend growth prospects, as well as maintaining their focus on businesses already paying high and growing dividends. This approach was adopted in mid-2024. It has already begun to narrow the differential between the Company's revenue return and dividends per share and is expected to further improve dividend cover over the next few years.
Discount, Share Repurchases
The Board believes it is in the best interests of shareholders to use its repurchase and allotment authorities to manage short-term imbalances between the supply and demand of the Company's shares, with the intention of reducing the volatility of the discount or premium, in normal market conditions. During the reporting period, the Company repurchased a total of 160,054 shares, at a cost of £1.4 million. As at 30th June 2026, the Company's discount to its cum-income, debt at fair value NAV was 2.6%, compared to a discount of 4.9% at the end of the financial year.
The discount has narrowed to 1.6%, as at 11th August 2026, the Board recognises that strong and consistent investment performance is essential to ensure the Company's shares trade close to NAV over the long term.
Gearing/Long-term Borrowing
The Board believes that a moderate level of gearing is an efficient way to enhance shareholder returns over the long term and is a valuable feature of the investment company structure. The Company's gearing policy (excluding the effect of any futures) is to operate within a range of 5% net cash and 20% geared in normal market conditions. The Portfolio Managers have discretion to vary the gearing level between 5% net cash and 17.5% geared and their decision to utilise gearing is based on bottom-up stock selection opportunities. The Company ended the review period 5.9% geared, compared to 5.4% at 31st December 2025. Historically, gearing has averaged 6.0%.
The Company implements gearing through long term fixed rate debt and Contracts for Difference (CFDs). It holds £30 million of 3.22% private placement notes maturing in March 2045. CFDs are in the view of the Portfolio Managers, a flexible, low-cost, capital efficient derivative which provides the investor with leveraged equity exposure to an underlying asset, without the need to own individual shares. The Board closely monitors the use and cost effectiveness of this form of gearing.
Board succession
The Company's Board continued to evolve during the past six months. Jill May, the Company's Senior Independent Director (SID) and Chair of both the Nominations Committee and Management Engagement Committee (MEC), stepped down at the 2026 Annual General Meeting (AGM) held in May 2026. My fellow directors and I would like to thank Jill for her significant contribution to the effective functioning of the Board during her tenure.
As previously announced, Graham Oldroyd was appointed as a non-executive director with effect from the conclusion of the 2026 AGM. Graham is a seasoned Director with a strong international leadership profile in private equity and industry, combining wide sector knowledge and in-depth expertise in strategic investment, mergers and acquisitions, joint ventures and business development. These skills and experience ensure he is well-equipped to make valuable contributions to the Board and to the Company's governance. Graham is currently a non-executive director of Senior plc, non-executive director of Videndum plc and Chairman of The Global Smaller Companies Trust PLC. Graham assumed the role of SID and Chair of the MEC on his appointment to the Company.
Outlook
The situation in the Middle East remains very tenuous at the time of writing and it is difficult to foresee its longer-term impact on energy prices and inflation. UK growth remains disappointingly weak, but as the Portfolio Managers remind us in their Report, the economy is not the principal driver of the UK equity market, as around 75% of corporate earnings are generated abroad and are thus subject to global, rather than domestic, economic developments. In addition, the same factors that have underpinned strong growth in UK share prices since early 2024 remain in place. Valuations are still appealing relative to both history and other markets and likely to keep attracting investors, including via M&A activity. Indeed, it is very encouraging to see that corporate activity has been gathering significant momentum since the beginning of this year. This is clear evidence that foreign investors in particular are beginning to recognise the value on offer in this market and there is good reason to expect this trend to continue to build over the remainder of this year and beyond.
So, in all, the Board shares the Portfolio Managers' optimism about the outlook for UK equities and for your Company, especially as the market continues to offer many interesting, well-priced opportunities with attractive dividend yields and the prospect of future dividend growth. We are confident that the Portfolio Managers' ongoing focus on these opportunities should ensure the Company continues to provide shareholders with attractive returns and a growing income over the long term.
Keeping in touch
My fellow Board members and I believe that it is very important to keep in touch with existing shareholders and to attract new investors. With these objectives in mind, over the past six months, the Portfolio Managers have continued to conduct webinars and provide portfolio and market updates on the Company's website. The Company also delivers regular email updates with news, views and performance data. If you have not already signed up to receive these communications, we encourage you to do so by clicking here or scanning the QR code on page 10 of the 2026 Half Year Report.
Thank you for your ongoing support.
Victoria Stewart
Chair 12th August 2026
INVESTMENT MANAGER'S REPORT
Market review
The first half of 2026 was characterised by an unusual combination of fresh geopolitical tensions, renewed inflation concerns and a domestic political leadership transition that refocused markets on the UK government's fiscal credibility. Equity market performance was therefore driven less by a steady macro trend and more by short, sharp rotations as investors tried to balance greater uncertainty against still soft underlying demand conditions.
The war in Iran and its impact on energy supply and prices was the defining macro catalyst. On 28th February 2026, the US and Israel launched co-ordinated attacks on Iranian targets, marking the start of hostilities. The immediate market focus was the vulnerability of supply chains passing through the Strait of Hormuz and the potential for a renewed energy-price shock to feed into inflation expectations. This raised a familiar question for UK assets: whether a supply-led increase in energy costs would slow real activity, while simultaneously keeping monetary policy restrictive for longer, to combat resultant inflation pressures.
Importantly, while energy prices did rise and contributed to a material increase in gas-related cost pressures, the market response was more measured than during the Russia/Ukraine shock. The starting point in 2026 was different: demand conditions were already softer, interest rates were already restrictive and labour-market dynamics had been cooling rather than tightening. Against that backdrop, the inflation impulse was widely viewed as less likely to generate the scale of second-round effects on wages and broad-based prices seen in 2022-23. As markets began to price in a US Iran ceasefire and a reduction in the Strait of Hormuz disruption in early April, energy prices retraced part of their earlier gains, underscoring how rapidly sentiment could shift as the perceived tail-risk around supply disruption ebbed and flowed.
By the end of the period, investors´ assessment of the oil supply situation had started to turn from 'shortage' to 'balance': with incremental supply expected to come through and OPEC cohesion increasingly questioned, the oil market looked finely poised suggesting that relatively small changes in demand or supply discipline could again drive outsized price moves. This created a backdrop in which energy remained both an inflation hedge and a source of volatility, rather than a simple directional call. Renewed hostilities across the Middle East in July have pushed up energy prices, but they remain well below their recent highs.
Financials and private credit also became a prominent theme in the past six months. Market concerns around private credit were ignited by a small number of high-profile credit events, by the gating of certain private credit investment vehicles (particularly those distributed into private-wealth channels) and by broader questions over how resilient borrower fundamentals might be if growth slows further. For listed banks, the impact is two-sided: a weaker growth outlook would weigh on credit demand and credit quality leading to higher provisions, countering this a 'higher-for-longer' interest rate path supports net interest income. In practice, the first-half reporting season confirmed that banks have become more forward-looking regarding their 'expected credit loss' provisioning and the sector continued to benefit from structural hedging of interest rate exposure, that locks in higher swap rates over time. The net result was that, despite heightened headlines around credit, earnings expectations in parts of the sector proved resilient.
Domestic politics once again began to influence the pricing of UK risk premia. The resignation of Prime Minister Keir Starmer in June 2026 and the emergence of Andy Burnham as Starmer´s likely successor placed the fiscal framework back at the centre of market attention. Against a backdrop of heightened gilt market sensitivity since 2022, investors looked for reassurance that the existing fiscal rules would be maintained and that policy would remain anchored around debt sustainability. The market focus was therefore not simply on the leadership change, but on its implications for taxation and spending priorities-particularly the challenge of meeting defence spending commitments in a constrained fiscal environment. Andy Burnham was appointed as Prime Minister in late July, making him the UK's sixth Prime Minister in seven years.
Despite the uncertainties generated by both global and domestic events, inbound mergers & acquisitions (M&A) activity became a defining feature of the UK equity landscape, providing significant support for the market over the review period. UK-targeted offers were reported to have surpassed £171 billion in H1 2026, up 210% year-on-year, with foreign takeovers comprising most of the activity by value (around 86%). This surge reflected a persistent valuation discount for UK equities, a broadly predictable takeover regime and a market in which global buyers are willing to act decisively when volatility created opportunity. Within this context, it was notable that two portfolio holdings, Beazley (an insurer) and Segro (an industrial REIT), were the subject of bids during the first half at premiums of 60% and 34% respectively, reinforcing the point that corporate activity can be an important driver of portfolio returns even when macroeconomic visibility is limited.
Overall, the first half of 2026 illustrated a market in which geopolitics set the tempo, interest rates and fiscal credibility shaped the discount rate, while corporate takeover activity provided some valuation support, despite uneven underlying growth. Against this backdrop UK equities, as measured by the FTSE All-Share Index, delivered a total return of +7.2%.
Performance
In the six months to 30th June 2026, the Company delivered a total return on net assets (including dividends re-invested, with debt at fair value) of +6.6%, compared to the Benchmark's return of +7.2%. The total return to shareholders was +9.3%, with the share price discount narrowing to 2.6% (debt at fair value).
The Company's NAV return modestly lagged the Benchmark over the period, reflecting a market environment that was driven by rapid shifts in the macroeconomic narrative (notably expectations of rising energy costs and interest rates following the start of the Iran conflict) and by stock-specific de-rating in certain domestically exposed areas. By contrast, the stronger share price return primarily reflected in the narrowing of the discount, highlighting continued demand for the trust's income and the merits of its quality bias in a volatile environment.
Relative performance over the six-month review period benefitted from our overweight positions in Softcat and HSBC. Softcat, the UK's leading IT value-added reseller, delivered an acceleration to 'strong double digit' growth in both gross profit and operating profit, supported by ongoing market share gains. Demand remained robust for IT infrastructure and services as UK businesses sought to capture productivity benefits from AI investment and strengthen cyber defences, particularly given heightened awareness of new AI-enabled vulnerabilities (including the 'Mythos' threat). This combination of resilient end demand and strong execution underpinned Softcat's positive contribution over the period. HSBC, the UK/Asian bank, also performed well as Asian wealth flows remained supportive. The group also provided guidance for accelerating revenue growth alongside continued cost discipline at its investor day. In a period where investors were rewarding clarity and balance sheet resilience, HSBC's messaging helped reinforce confidence in its delivery and prospects for capital returns.
However, the positive impact from these holdings was outweighed by weakness in Serco, Dunelm and ICG, which drove the portfolio's relative underperformance. Serco, the government outsourcer, delivered results ahead of market expectations. Yet despite this positive news, the shares declined alongside other defence-facing businesses late in the review period as hostilities in Iran cooled and investors questioned governments' ability to fund increased defence spending given fiscal constraints. Serco's shares have de-rated back to around 12x PE despite continued robust operating delivery and signs of accelerating organic growth. We therefore continue to hold the position, viewing the valuation as undemanding relative to the quality and visibility of Serco's contracted earnings. Dunelm, the homewares retailer, lowered guidance twice during the period, citing more intense competition. With the near-term trading backdrop becoming more challenging, we reduced the holding to reflect a less favourable risk/reward balance, while continuing to monitor the company's ability to grow market share. Finally, ICG, the private markets focused fund management business, underperformed as market concerns grew regarding private credit, despite the company delivering stronger fundraising and profitability than previously guided.
|
Top five stocks |
Average active position |
Contribution |
|
Bottom five stocks |
Average active position |
Contribution |
|
Softcat |
1.1% |
+0.53% |
|
Serco |
1.9% |
-0.52% |
|
HSBC |
2.0% |
+0.31% |
|
Dunelm |
1.0% |
-0.48% |
|
Beazley |
0.1% |
+0.30% |
|
ICG |
1.7% |
-0.40% |
|
Keller |
0.6% |
+0.26% |
|
Telecom Plus |
1.0% |
-0.40% |
|
Unilever |
-1.9% |
+0.25% |
|
Bellway |
0.9% |
-0.35% |
Source: JPMAM, six months to 30th June 2026.
Transactions
The portfolio's largest new investment during the period was the purchase of Hiscox, a non-life insurance company. This purchase was funded by the proceeds from the sale of its competitor Beazley, following its recommended takeover offer. The bid for Beazley represented a significant realisation of value - at a substantial premium of 60% to the company's share price before the deal was announced and at more than twice price-to-tangible net asset value - so we viewed it as an appropriate point to recycle capital within the non-life insurance space. Hiscox also offers an attractive stand-alone investment case. While insurance pricing softened through 2025 and early 2026, Hiscox's retail pricing is more stable and still growing at a low-to-mid single digit pace, London market and reinsurance pricing remains broadly adequate or better. Crucially, we also see the potential for a more durable earnings profile through a combination of accelerating retail growth - supported by new products and distribution wins - and significant cost savings, which we estimate could contribute the equivalent of around 30% of profit before tax by 2028.
We also added to our holding in recent strong performer Softcat. The company acts as an important distribution partner for technology vendors seeking to extend their reach into the small and medium-sized business market. We continue to view this as a structurally attractive segment: the market remains fragmented, Softcat has a long record of taking market share and it has delivered double digit gross profit growth consistently since its IPO in 2015. Alongside this operational track record, Softcat has demonstrated strong capital discipline, growing its ordinary dividend at a double-digit rate over recent years and paying a special dividend every year since listing. From a portfolio perspective, we see the position as offering an attractive combination of growth and income progression, with scope for significant dividend growth over time.
During the period, we executed a partial switch from Imperial Brands into British American Tobacco (BAT). The core rationale was our view that the US regulatory backdrop for next generation nicotine products such as vapes and pouches has become more conducive, favouring regulated businesses with scaled next generation product portfolios. BAT is well-positioned in the 'modern oral nicotine' sector, which focuses on smokeless alternatives to cigarettes, through Velo, which is a leading and fast-growing brand of nicotine pouches. We also see meaningful scope for the expansion of BAT's Vuse vaping franchise, as the US market increasingly enforces bans on illegal products. In aggregate, this repositioning was intended to maintain attractive income characteristics, while increasing exposure to areas of structural growth within this industry.
Top over-weight positions vs FTSE All-Share Index
|
Top five overweight positions |
Position size relative to the Benchmark |
|
NatWest Group |
3.0% |
|
Softcat |
2.0% |
|
ICG |
1.7% |
|
HSBC |
1.5% |
|
LondonMetric Properties |
1.5% |
Source: JPMAM, as at 30th June 2026.
In terms of disposals, we sold our holding in retailer M&S. A year or so on from a major cyber-attack, the company has not regained the operating momentum that underpinned our original investment thesis. Furthermore, persistent inflation and low consumer confidence mean the backdrop for the UK consumer is lacklustre and we concluded that capital could be deployed into more compelling opportunities elsewhere.
Finally, we made a partial sale of Telecom Plus. Customer growth has slowed and the business appears to require incremental reinvestment in pricing, marketing and technology to drive further growth in a highly competitive environment. While we continue to respect the company's franchise and long-term model, we chose to reduce the position size to reflect the increased near-term investment requirement and a less straightforward path to growth.
Portfolio positioning
The portfolio held 64 stocks at the end of June, towards the lower end of our target range of 60-80 holdings. We believe this remains an appropriate balance between diversification and conviction. It is sufficiently broad to ensure the portfolio is not reliant on any single holding for a disproportionate share of income, while still allowing individual positions to make a meaningful contribution when fundamentals and valuation align.
One of the key advantages of the investment trust structure is the ability to employ gearing, which we believe can enhance returns over the medium to longer term when used selectively and with discipline. We determine gearing on a stock-by-stock basis, weighing the prospective returns available from individual opportunities against the marginal cost of borrowing. With valuations for many UK equities still attractive versus longer-term history and with robust economic momentum creating opportunities in a range of high-quality businesses, we continue to view gearing as an appropriate tool to increase exposure to our highest-conviction ideas. The portfolio was 5.9% geared at the period end, versus 5.4% at the end of the financial year ended 31st December 2025.
Our largest active position remains NatWest. We continue to view this bank as one of the best-positioned UK lenders, combining a strong deposit franchise with a conservative balance sheet and a clear focus on execution. NatWest's material share of UK current accounts supports a low-cost deposit base, which is a competitive advantage in the current rate environment and underpins the bank's strong net interest margin. In addition, NatWest's lending book is skewed toward UK mortgages, which we regard as relatively lower risk and the bank also benefits from a structural hedge against falling interest rates that provides added visibility to net interest income over time. Alongside disciplined risk management, NatWest has also built a strong record on cost control. Taken together, these attributes support an attractive level of profitability - a high-teens return on net tangible assets in our assessment - while the shares continue to offer an attractive income profile, including a dividend yield above 5%.
A further area of conviction is our overweight holding in Intermediate Capital Group (ICG), an alternative asset manager focused on private markets. ICG has demonstrated a strong and increasingly diversified fundraising capability: it has been successful both in seeding newer strategies and in scaling subsequent vintages of established flagship funds. Importantly, the business has continued to deliver in the more challenging fundraising environment seen since 2022, which gives us confidence that momentum is not solely a function of otherwise benign market conditions. We believe the market tends to underappreciate the duration and resilience of ICG's management fee streams, given that investors commit capital over multi-year periods and fee revenues are therefore typically less sensitive to short-term market volatility than sentiment might imply. With a scalable operating model, we see scope for operating leverage to support attractive earnings progression and dividend growth, alongside an already high starting yield of over 5%.
We also hold LondonMetric Properties, an industrial REIT, where we see an attractive combination of income durability, operational efficiency and valuation support. The company has a strong track record of delivering consistent rental growth, supported by a long average lease length (around 17 years) and contractual rental uplifts across a significant portion of the portfolio (approximately 67%). LondonMetric also stands out for its cost discipline: it has the lowest European Public Real Estate Association (EPRA) cost ratio among UK REITs, which means it converts rental income into distributable cash flow efficiently. At end June 2026, the shares were trading at a discount of roughly 10% to NAV, while offering an attractive dividend yield of around 7%, which we believe provides a compelling risk-adjusted income proposition.
Overall, our positioning reflects a continued focus on companies that can deliver attractive dividend yields and income growth through the cycle. We are using gearing prudently to enhance exposure to these opportunities, while maintaining a diversified structure that we believe is appropriate for a period likely to remain characterised by elevated macro uncertainty and episodic volatility.
Market outlook
We entered the second half of 2026 with the market still subject to various cross-currents: the effects of simmering tensions and sporadic conflict in the Middle East on energy prices and inflation expectations, ongoing scrutiny of private credit and a renewed focus on UK fiscal credibility following the appointment of the new Prime Minister. These forces are likely to keep volatility elevated and to sustain a high degree of dispersion between sectors and individual companies, reinforcing the importance of selectivity and balance-sheet resilience.
Against this backdrop, we remain positive on the prospects for the UK market and for the Company. Crucially, UK equities remain attractively valued. The UK market is currently trading on around 12.7x price-to-earnings, which represents a discount versus its own history and versus many other major markets. This valuation gap explains the continued high level of inbound M&A interest we saw during the first half and suggests the market will benefit from further takeover activity over the second half and beyond. Relatively low valuations also provide a supportive starting point for prospective returns, particularly if the macro environment stabilises or if earnings growth broadens.
It is important to remember that while domestic macro headlines often dominate sentiment, the UK equity market is not a pure play on the UK economy. Around 75% of FTSE All-Share earnings are generated overseas, which means the earnings base is more exposed to global growth, commodity prices and currency market dynamics than to UK domestic activity alone. As a result, periods of UK political or economic uncertainty can be more damaging to near-term confidence and discount rates than to the underlying earnings power of many of the market's constituents, which is the key determinant of long-term returns.
Regardless of current domestic and global uncertainties, we continue to focus on building a portfolio of businesses that combine attractive dividend yields today with strong prospects for future income growth. The opportunity set remains compelling: valuation discounts persist across a range of high-quality companies, corporate activity continues to highlight mispricing and there are multiple areas where we believe cash generation and dividend progression can remain robust even if the macro backdrop remains uneven. We therefore remain confident that the portfolio is well positioned to continue meeting its objective of delivering capital and income growth for shareholders over the medium term.
Anthony Lynch
Callum Abbot
Katen Patel
Portfolio Managers 12th August 2026
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its half yearly report.
Principal Risks and Uncertainties
The Board has an ongoing process for identifying, evaluating and managing the principal risks, emerging risks and uncertainties of the Company. The principal risks and uncertainties faced by the Company fall into the following broad categories: geopolitical and macro-economic; cybersecurity; share price volatility; market factors such as interest rates, inflation and equity market performance; loss of investment team; strategy and performance; climate change; legal and regulatory/corporate governance; and operational. Detailed information on each of these areas is given in the Strategic Report within the Annual Report and Financial Statements for the year ended 31st December 2025 and in the view of the Board, these principal and emerging risks are as applicable to the remaining six months of the financial year as they were to the period under review.
Related Parties Transactions
During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company.
Going Concern
The Directors believe, having considered the Company's investment objectives, risk management policies, capital management policies and procedures, liquidity and nature of the portfolio, and expenditure projections, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future and, more specifically, that there are no material uncertainties pertaining to the Company that would prevent its ability to continue in such operational existence for at least 12 months from the date of the approval of this half yearly report. The Company's assets, the vast majority of which are investments in quoted securities which are readily realisable, exceed its liabilities significantly under all stress test scenarios reviewed by the Board. For these reasons, they consider that there is sufficient evidence to continue to adopt the going concern basis in preparing the financial statements. The Board has, in particular, considered the impact of market volatility from the impact of armed conflict and heightened geopolitical tension in the Middle East and does not believe the Company's going concern status is affected.
Furthermore, the Directors are satisfied that the Company's key third party service providers have in place appropriate business continuity plans to ensure their operational resilience and the performance of these service providers is reviewed at least annually by the Management Engagement Committee.
Statement of Directors' Responsibilities
The Board of Directors of the Company, confirms that, to the best of its knowledge:
(i) the condensed set of financial statements contained within the half year financial report has been prepared in accordance with FRS 104 'Interim Financial Reporting' and gives a true and fair view of the state of affairs of the Company, and of the assets, liabilities, financial position and net return of the Company as at 30th June 2026 as required by the Disclosure Guidance and Transparency Rules 4.2.4R; and
(ii) the interim management report includes a fair review of the information required by 4.2.7R and 4.2.8R of the Disclosure Guidance and Transparency Rules.
In order to provide these confirmations, and in preparing these financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business;
and the Directors confirm that they have done so.
For and on behalf of the Board
Victoria Stewart
Chair 12th August 2026
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
||||||
|
|
Six months ended |
Six months ended |
Year ended |
||||||
|
|
30th June 2026 |
30th June 2025 |
31st December 2025 |
||||||
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Gains on investments held |
|
|
|
|
|
|
|
|
|
|
at fair value through |
|
|
|
|
|
|
|
|
|
|
profit or loss |
- |
21,786 |
21,786 |
- |
45,554 |
45,554 |
- |
94,864 |
94,864 |
|
Losses on derivative financial |
|
|
|
|
|
|
|
|
|
|
instruments1 |
- |
(1,858) |
(1,858) |
- |
- |
- |
- |
(640) |
(640) |
|
Foreign currency exchange |
|
|
|
|
|
|
|
|
|
|
gains |
- |
6 |
6 |
- |
7 |
7 |
- |
12 |
12 |
|
Income from investments |
11,210 |
583 |
11,793 |
11,373 |
98 |
11,471 |
19,730 |
98 |
19,828 |
|
Income from derivative |
|
|
|
|
|
|
|
|
|
|
financial instruments1 |
2,212 |
- |
2,212 |
- |
- |
- |
571 |
- |
571 |
|
Interest receivable and |
|
|
|
|
|
|
|
|
|
|
similar income |
335 |
- |
335 |
176 |
- |
176 |
346 |
- |
346 |
|
Gross return |
13,757 |
20,517 |
34,274 |
11,549 |
45,659 |
57,208 |
20,647 |
94,334 |
114,981 |
|
Management fee |
(382) |
(710) |
(1,092) |
(333) |
(619) |
(952) |
(693) |
(1,285) |
(1,978) |
|
Other administrative expenses |
(354) |
- |
(354) |
(394) |
- |
(394) |
(766) |
- |
(766) |
|
Net return before finance |
|
|
|
|
|
|
|
|
|
|
costs and taxation |
13,021 |
19,807 |
32,828 |
10,822 |
45,040 |
55,862 |
19,188 |
93,049 |
112,237 |
|
Finance costs |
(319) |
(592) |
(911) |
(283) |
(524) |
(807) |
(520) |
(966) |
(1,486) |
|
Net return before taxation |
12,702 |
19,215 |
31,917 |
10,539 |
44,516 |
55,055 |
18,668 |
92,083 |
110,751 |
|
Taxation |
(33) |
- |
(33) |
(28) |
- |
(28) |
(69) |
- |
(69) |
|
Net return after taxation |
12,669 |
19,215 |
31,884 |
10,511 |
44,516 |
55,027 |
18,599 |
92,083 |
110,682 |
|
Return per ordinary share (note 3) |
23.25p |
35.27p |
58.52p |
18.96p |
80.31p |
99.27p |
33.71p |
166.87p |
200.58p |
1 These relate to CFDs.
All revenue and capital items in the above statement derive from continuing operations.
The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns
represent supplementary information prepared under guidance issued by the Association of Investment Companies.
The net return after taxation represents the profit for the period/year and also the total comprehensive income for the
period/year.
CONDENSED STATEMENT OF CHANGES IN EQUITY
|
|
Called up |
Share |
Capital |
|
|
|
|
|
share |
premium |
redemption |
Capital |
Revenue |
|
|
|
capital |
account |
reserve |
reserves1 |
reserve1 |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Six months ended 30th June 2026 (Unaudited) |
|
|
|
|
|
|
|
At 31st December 2025 |
15,037 |
176,867 |
6,680 |
273,275 |
16,572 |
488,431 |
|
Repurchase of ordinary shares into Treasury |
- |
- |
- |
(1,368) |
- |
(1,368) |
|
Net return after taxation |
- |
- |
- |
19,215 |
12,669 |
31,884 |
|
Dividends paid in the period (note 4) |
- |
- |
- |
- |
(10,628) |
(10,628) |
|
At 30th June 2026 |
15,037 |
176,867 |
6,680 |
291,122 |
18,613 |
508,319 |
|
Six months ended 30th June 2025 (Unaudited) |
|
|
|
|
|
|
|
At 31st December 2024 |
15,037 |
176,867 |
6,680 |
193,302 |
17,809 |
409,695 |
|
Repurchase of ordinary shares into Treasury |
- |
- |
- |
(6,507) |
- |
(6,507) |
|
Net return after taxation |
- |
- |
- |
44,516 |
10,511 |
55,027 |
|
Dividends paid in the period (note 4) |
- |
- |
- |
- |
(10,581) |
(10,581) |
|
At 30th June 2025 |
15,037 |
176,867 |
6,680 |
231,311 |
17,739 |
447,634 |
|
Year ended 31st December 2025 (Audited) |
|
|
|
|
|
|
|
At 31st December 2024 |
15,037 |
176,867 |
6,680 |
193,302 |
17,809 |
409,695 |
|
Repurchase of ordinary shares into Treasury |
- |
- |
- |
(12,110) |
- |
(12,110) |
|
Net return after taxation |
- |
- |
- |
92,083 |
18,599 |
110,682 |
|
Dividends paid in the year (note 4) |
- |
- |
- |
- |
(19,836) |
(19,836) |
|
At 31st December 2025 |
15,037 |
176,867 |
6,680 |
273,275 |
16,572 |
488,431 |
1 These reserves form the distributable reserves of the Company and may be used to fund distributions to investors.
CONDENSED STATEMENT OF FINANCIAL POSITION
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
At 30th June |
At 30th June |
At 31st December |
|
|
2026 |
2025 |
2025 |
|
|
£'000 |
£'000 |
£'000 |
|
Non current assets |
|
|
|
|
Investments held at fair value through profit or loss |
502,880 |
476,365 |
505,873 |
|
Current assets |
|
|
|
|
Derivative financial instrument assets1 |
646 |
- |
465 |
|
Debtors |
2,795 |
1,978 |
1,122 |
|
Cash and cash equivalents |
35,054 |
9,803 |
11,536 |
|
|
38,495 |
11,781 |
13,123 |
|
Current liabilities |
|
|
|
|
Derivative financial instrument liabilities1 |
(492) |
- |
(101) |
|
Creditors: amounts falling due within one year |
(2,564) |
(10,512) |
(464) |
|
Net current assets |
35,439 |
1,269 |
12,558 |
|
Total assets less current liabilities |
538,319 |
477,634 |
518,431 |
|
Non current liabilities |
|
|
|
|
Creditors: amounts falling due after more than one year |
(30,000) |
(30,000) |
(30,000) |
|
Net assets |
508,319 |
447,634 |
488,431 |
|
Capital and reserves |
|
|
|
|
Called up share capital |
15,037 |
15,037 |
15,037 |
|
Share premium account |
176,867 |
176,867 |
176,867 |
|
Capital redemption reserve |
6,680 |
6,680 |
6,680 |
|
Capital reserves |
291,122 |
231,311 |
273,275 |
|
Revenue reserve |
18,613 |
17,739 |
16,572 |
|
Total shareholders' funds |
508,319 |
447,634 |
488,431 |
|
Net asset value per ordinary share (note 5) |
934.2p |
810.2p |
895.0p |
1 These relate to CFDs.
CONDENSED STATEMENT OF CASH FLOWS
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
Six months ended |
Six months ended |
Year ended |
|
|
30th June |
30th June |
31st December |
|
|
2026 |
2025 |
2025 |
|
|
£'000 |
£'000 |
£'000 |
|
Cash flows from operating activities |
|
|
|
|
Net return before finance costs and taxation |
32,828 |
55,862 |
112,237 |
|
Adjustment for: |
|
|
|
|
Gains on investments held at fair value through profit or loss |
(21,786) |
(45,554) |
(94,864) |
|
Losses on derivative financial instruments1 |
1,858 |
- |
640 |
|
Foreign currency exchange gains |
(6) |
(7) |
(12) |
|
Dividend income |
(11,793) |
(11,471) |
(19,828) |
|
Income from derivative financial instruments1 |
(2,212) |
- |
(571) |
|
Interest income |
(335) |
(176) |
(346) |
|
Realised gains on foreign currency exchange transactions |
6 |
13 |
12 |
|
Increase in other debtors |
(5) |
(33) |
(5) |
|
Decrease in accrued expenses |
(2) |
(30) |
(31) |
|
Net cash outflow from operations before dividends, |
|
|
|
|
interest and taxation |
(1,447) |
(1,396) |
(2,768) |
|
Dividends received |
11,510 |
10,903 |
19,588 |
|
Interest received |
335 |
176 |
346 |
|
Overseas withholding tax recovered |
41 |
7 |
8 |
|
Net cash inflow from operating activities |
10,439 |
9,690 |
17,174 |
|
Purchases of investments |
(41,801) |
(43,122) |
(105,789) |
|
Sales of investments |
67,650 |
52,650 |
135,576 |
|
Income received from derivative financial instruments1 |
984 |
- |
571 |
|
Net settlement of derivative financial instruments1 |
(896) |
- |
(1,004) |
|
Net cash inflow from investing activities |
25,937 |
9,528 |
29,354 |
|
Dividends paid |
(10,628) |
(10,581) |
(19,836) |
|
Repurchase of ordinary shares into Treasury |
(1,368) |
(6,510) |
(12,113) |
|
Repayment of bank loan |
- |
- |
(10,000) |
|
Interest paid on bank loans and overdrafts |
(494) |
(824) |
(1,495) |
|
Interest paid on derivative financial instruments1 |
(368) |
- |
(54) |
|
Net cash outflow from financing activities |
(12,858) |
(17,915) |
(43,498) |
|
Increase in cash and cash equivalents |
23,518 |
1,303 |
3,030 |
|
Cash and cash equivalents at start of period/year |
11,536 |
8,506 |
8,506 |
|
Foreign currency exchange movements |
- |
(6) |
- |
|
Cash and cash equivalents at end of period/year |
35,054 |
9,803 |
11,536 |
|
Cash and cash equivalents consist of: |
|
|
|
|
Cash at bank |
262 |
601 |
324 |
|
Investment in JPMorgan GBP Liquidity Fund |
34,792 |
9,202 |
11,212 |
|
Total |
35,054 |
9,803 |
11,536 |
1 These relate to CFDs.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the six months ended 30th June 2026.
1. Financial statements
The condensed financial information contained in this half yearly financial report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The financial information for the six months ended 30th June 2026 and 30th June 2025 has not been audited or reviewed by the Company's Auditor.
The figures and financial information for the year ended 31st December 2025 are extracted from the latest published financial statements of the Company and do not constitute statutory accounts for that year. Those financial statements have been delivered to the Registrar of Companies including the report of the auditor which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.
2. Accounting policies
FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting Council ('FRC'), has been applied in preparing this condensed set of financial statements for the six months ended 30th June 2026.
The condensed financial statements are prepared under the historical cost convention, modified to include fixed asset investments at fair value, in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ('UK GAAP'), including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the 'SORP') issued by the Association of Investment Companies in December 2025.
All of the Company's operations are of a continuing nature.
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least 12 months from the date of approval of these condensed financial statements. Accordingly, the Directors consider it appropriate to adopt the going concern basis of accounting in preparing these condensed financial statements. This conclusion takes into account the Directors assessment of the risks faced by the Company as detailed in the Interim Management Report on page 28 of the 2026 Half Year Report.
The accounting policies applied to this condensed set of financial statements are consistent with those applied in the financial statements for the year ended 31st December 2025.
3. Return per ordinary share
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
Six months ended |
Six months ended |
Year ended |
|
|
30th June |
30th June |
31st December |
|
|
2026 |
2025 |
2025 |
|
|
£'000 |
£'000 |
£'000 |
|
Return per ordinary share is based on the following: |
|
|
|
|
Revenue return |
12,669 |
10,511 |
18,599 |
|
Capital return |
19,215 |
44,516 |
92,083 |
|
Total return |
31,884 |
55,027 |
110,682 |
|
Weighted average number of ordinary shares in issue |
|
|
|
|
(excluding shares held in Treasury) |
54,482,210 |
55,429,122 |
55,181,670 |
|
Revenue return per ordinary share |
23.25p |
18.96p |
33.71p |
|
Capital return per ordinary share |
35.27p |
80.31p |
166.87p |
|
Total return per ordinary share |
58.52p |
99.27p |
200.58p |
4. Dividends paid
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|||
|
|
Six months ended |
Six months ended |
Year ended |
|||
|
|
30th June 2026 |
30th June 2025 |
31st December 2025 |
|||
|
|
Pence |
£'000 |
Pence |
£'000 |
Pence |
£'000 |
|
Dividend paid |
|
|
|
|
|
|
|
Final dividend in respect of prior year |
11.00 |
6,003 |
10.65 |
5,940 |
10.65 |
5,940 |
|
First quarterly dividend |
8.50 |
4,625 |
8.40 |
4,641 |
8.40 |
4,641 |
|
Second quarterly dividend |
- |
- |
- |
- |
8.40 |
4,641 |
|
Third quarterly dividend |
- |
- |
- |
- |
8.40 |
4,614 |
|
Total dividends paid |
19.50 |
10,628 |
19.05 |
10,581 |
35.85 |
19,836 |
All dividends paid in the period/year have been funded from the revenue reserve.
A second quarterly dividend of 8.50p (2025: 8.40p) per share, amounting to approximately £4,625,000 (2025: £4,641,000) has been declared payable in respect of the year ending 31st December 2026. It will be paid on 1st September 2026 to shareholders on the register at the close of business on 24th July 2026.
5. Net asset value per ordinary share
The net asset value per ordinary share and the net asset value attributable to the ordinary shares at the period/year end are shown below. These were calculated using 54,410,664 (30th June 2025: 55,250,259; 31st December 2025: 54,570,718) ordinary shares in issue at the period/year end (excluding Treasury shares).
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|||
|
|
At 30th June 2026 |
At 30th June 2025 |
At 31st December 2025 |
|||
|
|
Net asset value |
Net asset value |
Net asset value |
|||
|
|
attributable |
attributable |
attributable |
|||
|
|
£'000 |
pence |
£'000 |
pence |
£'000 |
pence |
|
Net asset value - debt at par value |
508,319 |
934.2 |
447,634 |
810.2 |
488,431 |
895.0 |
|
£30 million 3.22% private placement loan March 2045: |
|
|
|
|
|
|
|
Add: amortised cost |
30,000 |
55.1 |
30,000 |
54.3 |
30,000 |
55.0 |
|
Less: fair value |
(20,901) |
(38.4) |
(20,998) |
(38.0) |
(21,273) |
(39.0) |
|
Net asset value - debt at fair value |
517,418 |
950.9 |
456,636 |
826.5 |
497,158 |
911.0 |
6. Fair valuation of instruments
The fair value hierarchy analysis for financial instruments held at fair value at the period/year end is as follows:
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|||
|
|
At 30th June 2026 |
At 30th June 20251 |
At 31st December 2025 |
|||
|
|
Assets |
Liabilities |
Assets |
Liabilities |
Assets |
Liabilities |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Level 1 |
502,880 |
- |
476,365 |
- |
505,873 |
- |
|
Level 2 |
|
|
|
|
|
|
|
- JPMorgan GBP Liquidity Fund |
34,792 |
- |
9,202 |
- |
11,212 |
- |
|
- Derivative financial instruments (CFDs) |
646 |
(492) |
- |
- |
465 |
(101) |
|
Total value of investments |
538,318 |
(492) |
485,567 |
- |
517,550 |
(101) |
1 The figures for 30th June 2025 have been restated to include the investment in the JPMorgan GBP Liquidity Fund as Level 2 being a money market fund.
7. Analysis of change in (net debt)/cash
|
|
At |
|
|
At |
|
|
31st December |
|
Other |
30th June |
|
|
2025 |
Cash flows |
non-cash charges |
2026 |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
Cash and cash equivalents |
|
|
|
|
|
Cash at bank |
324 |
(62) |
- |
262 |
|
Investment in JPMorgan GBP Liquidity Fund |
11,212 |
23,580 |
- |
34,792 |
|
|
11,536 |
23,518 |
- |
35,054 |
|
Borrowings |
|
|
|
|
|
Debt due after one year |
|
|
|
|
|
£30 million 3.22% private placement loan |
(30,000) |
- |
- |
(30,000) |
|
|
(30,000) |
- |
- |
(30,000) |
|
(Net debt)/cash |
(18,464) |
23,518 |
- |
5,054 |
JPMORGAN FUNDS LIMITED
August 12th 2026
For further information, please contact:
Anmol Dhillon
For and on behalf of
JPMorgan Funds Limited
Telephone: 0800 20 40 20 or +44 1268 44 44 70
E-mail: jpmam.investment.trusts@jpmorgan.com
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
ENDS
A copy of the Half Year will be submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
The Half Year Report will also shortly be available on the Company's website at www.jpmclaverhouse.co.uk where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund