Marketing Communication
All investors want to see their portfolios grow over time. But in addition, many are also seeking reliable, predictable and attractive levels of income. Several of J.P. Morgan Asset Management’s investment trusts, across a range of strategies, specifically aim to meet this income requirement, as well as delivering capital growth. These include JPMorgan Claverhouse Investment Trust, JPMorgan European Growth & Income (JEGI) and JPMorgan India Growth & Income (JIGI, which has recently changed its name from JPMorgan Indian Investment Trust to reflects its dividend objective). JEGI and JIGI have enhanced dividend policies which aim to pay a fixed percentage of the previous year’s net asset value, funded by a mix of dividend earnings and revenue or capital reserves.
Claverhouse: A UK trust with an impressive record of dividend growth
Claverhouse invests in UK companies which provide attractive current income, or the prospect of future income growth. And the trust has an impressive track record of dividend growth. It has increased its dividend for 52 consecutive years, and it is an AIC dividend hero¹, a designation only awarded to investment companies which have grown their dividend for 20 consecutive years or more.
JEGI and JIGI offer 4% annual dividend
The dividend policies of the other two trusts both offer shareholders a dividend of 4% per annum, based on net asset value at the end of the previous financial year. This makes JIGI unique as it is the only investment company in the Indian market to offer a dividend. The dividends of all three trusts are paid quarterly, from net income available in each financial year, or from revenue or capital reserves. This ability to draw on reserves, if necessary, allows the managers to meet their dividend objectives unconstrained by the need to invest in high yielding stocks to meet a specific annual income requirement.
Claverhouse is leveraged into global growth…
The sources of income and dividend growth for Claverhouse and its European and Indian counterparts differ, but the managers of all three trusts are confident about their ability to meet their trusts’ dividend and growth objectives. In the UK, there may be uncertainties about the outlook for the domestic economy, but this is not a concern for Claverhouse’s Portfolio Manager, Anthony Lynch, because about 75% of revenues earned by FTSE All-Share companies comes from abroad². Claverhouse therefore gives shareholders diversified exposure to global growth - and the dividends it generates.
…while domestic demand will drive growth and income in Europe and India
Conversely, domestic spending is expected to be the primary driver of portfolio income for the European and Indian trusts, according to their managers. Timothy Lewis, JEGI Portfolio Manager, believes that the European economy is only at the beginning of a resurgence after a long period of underperformance. He cites a study by The Economist showing that all five of 2024’s top performing economies - Spain, Ireland, Denmark, Greece and Italy – were European3. And he expects activity to continue to improve across the region, supported by pent-up consumer demand, improving consumer and business sentiment, high savings rates, easier monetary policy and this year’s very significant shift in Germany’s fiscal position stance. In his view, these factors will drive earnings into the next decade.
Dennis Eldridge, an Investment Specialist for JIGI, has equally high hopes for India’s domestic economy. He believes the reforms implemented in recent years have laid the basis for an improvement in private capital expenditure and consumption. Indeed, India’s high population and rapidly expanding middle class suggest growing consumer demand will provide the biggest growth opportunities in the Indian market over the coming decade. The trust is positioned to benefit directly, via investments in companies such as vehicle maker, Mahindra & Mahindra, and biscuit manufacturer, Brittania, that will do well as households up-scale their consumption. Rising incomes will also generate demand for banking, credit and insurance services, and asset management, so the trust also has significant exposure to financials.
Investment trust structure is supportive of trusts’ income and growth objectives
The managers of all three trusts agree that the investment trust structure helps them meet their income requirement. For Lynch, the most important investment trust feature is the capacity to increase reserves in good times and use these accumulated reserves to smooth dividends in tougher times, as this gives shareholders a certain, stable, and rising income.
The investment trust structure also allows managers to invest in smaller, less liquid companies, without the risk of being forced to sell these stocks prematurely, to raise liquidity. This is especially appealing to the managers of JEGI and JIGI given their significant exposure to smaller companies – which are likely to benefit most from anticipated increases in domestic spending. JEGI now has some15% of its portfolio in smaller cap names, twice the level of a couple of years ago, while around 25% of JIGI comprises businesses with market caps below US$10bn, much greater than the benchmark weighting of c10%4.
So, whether investors want exposure to UK companies tapping into global growth, to the resurgence of the European economy, or to India’s great long-term domestic growth story, JPMorgan’s investment trusts are well-positioned to provide this exposure, while also aiming to deliver a regular and predictable income.
The securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell.
Image: Shutterstock
1 AIC, as at 26 September 2025: https://www.theaic.co.uk/income-finder/dividend-heroes
2 J.P. Morgan Asset Management, Guide to the Markets, page 56: https://cdn.jpmorganfunds.com/content/dam/jpm-am-aem/global/en/insights/market-insights/guide-to-the-markets/mi-guide-to-the-markets-uk.pdf
3 The Economist, Which economy did best in 2024?, 10 December 2024: Which economy did best in 2024?
4 J.P. Morgan Asset Management, as at 30 September 2025.
JPMorgan Claverhouse Investment Trust
The risk indicator assumes you keep the product for 5 year(s). The risk of the product may be significantly higher if held for less than the recommended holding period.
Investment Objective: The Company aims to provide a combination of capital and income growth from a portfolio consisting mostly of companies listed on the London Stock Exchange. The Company’s portfolio consists typically between 60 and 80 individual equities in which the Manager has high conviction. The Company has the ability to use borrowing to gear the portfolio within the range of 5% net cash to 20% geared in normal market conditions.
Risk Profile: Where permitted, a Company may invest in other investment funds that utilise gearing (borrowing) which will exaggerate market movements both up and down. This Company may use derivatives for investment purposes or for efficient portfolio management. External factors may cause an entire asset class to decline in value. Prices and values of all shares or all bonds and income could decline at the same time, or fluctuate in response to the performance of individual companies and general market conditions. This Company may utilise gearing (borrowing) which will exaggerate market movements both up and down. This Company may also invest in smaller companies which may increase its risk profile. The share price may trade at a discount to the Net Asset Value of the Company. The single market in which the Company primarily invests, in this case the UK, may be subject to particular political and economic risks and, as a result, the Company may be more volatile than more broadly diversified companies.
JPMorgan European Growth & Income plc
The risk indicator assumes you keep the product for 5 year(s). The risk of the product may be significantly higher if held for less than the recommended holding period.
Investment objective: Aims to provide capital growth and a rising share price over the longer term from Continental European investments by taking carefully controlled risks through an investment method that is clearly communicated to shareholders. Currency exposure is predominantly hedged back towards the benchmark. The Company has the ability to use borrowing to gear the portfolio within the range of 10% net cash to 20% geared in normal market conditions.
Risk Profile: Exchange rate changes may cause the value of underlying overseas investments to go down as well as up. Where permitted, a Company may invest in other investment funds that utilise gearing (borrowing) which will exaggerate market movements both up and down. This Company may use derivatives for investment purposes or for efficient portfolio management. External factors may cause an entire asset class to decline in value. Prices and values of all shares or all bonds and income could decline at the same time, or fluctuate in response to the performance of individual companies and general market conditions. This Company may utilise gearing (borrowing) which will exaggerate market movements both up and down. This Company may also invest in smaller companies which may increase its risk profile. The share price may trade at a discount to the Net Asset Value of the Company.
JPMorgan India Growth & Income plc