Jpmorgan Claverhouse Investment Trust Plc

JPMorgan Claverhouse Investment Trust plc

September 2020

William Meadon Portfolio Manager

FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Agenda

Trust overview Claverhouse – ready for a very new world Performance & positioning Dividends

1 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Trust overview

2 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Managers of JPMorgan Claverhouse Investment Trust plc

William Meadon, Managing Director • An employee since 1996 • Head of Behavioural Finance Core Team • Manager of Claverhouse since March 2012 • 37 years industry experience – 24 years at J.P. Morgan Asset Management • Qualified ACA

Callum Abbot, Vice President • An employee since 2012 • Manager of Claverhouse since January 2018 • 8 years industry experience – 8 years at J.P. Morgan Asset Management • Qualified CFA

… UK equity specialists

As at 30 June 2020.

3 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION JPMorgan Claverhouse Investment Trust plc

Background Dividend

 47 consecutive years of dividend growth  Founded in 1963  Well covered  Gross assets - £394 million  Best reserves in the sector ( > 1 year)*  UK only, FTSE All-Share benchmark Performance since change in strategy (1 March 2012)  60 – 80 stocks, risk-controlled

 Flexible gearing (5% cash to 20% geared)  NAV outperformance vs. benchmark of +1.3% p.a.

 A prudently run, medium risk fund which invests in  Share price outperformance vs. benchmark of income generating UK companies with a focus on +2.3% p.a. those that provide consistent and growing dividends. Discount control mechanism

Past performance is not a reliable indicator of current and future results. Dividends are not guaranteed. Source: J.P. Morgan Asset Management as of 31 July 2020. Annualised net asset value (NAV) return of the investment trust in excess of the benchmark calculated geometrically. NAV return per share is calculated on a bid value to bid value basis, in GBP, cum-income NAV (assuming that all dividends paid out during the relevant periods were reinvested into the shares of the investment trust at the NAV per share on ex-dividend date), with debt at par. Share price performance figures are calculated on a mid market basis in GBP with income reinvested on the ex-dividend date. Benchmark = FTSE All–Share Index. * for more information, see slide 21

4 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Claverhouse – ready for a very new world

5 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Covid-19: Claverhouse’s approach : ready for a very new world The sudden arrival in Q1 2020 of the global pandemic Covid-19 necessitated a significant change in the Claverhouse portfolio

 Reduce cyclicality/”Boris Bounce” beneficiaries

– National Express, Mitchells & Butlers and Rank

 Increase exposure to “quality, resilient companies”

– Aveva, Softcat, Next, Dunelm, Ocado

 Moderate gearing until pandemic/economic outlook becomes clearer ( circa max 10%)

 Focus on dividend payers/ potential payers

– Legal & General, Phoenix and M&G

– Housebuilders (full of dividend potential)

– Avoid Banks

Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. The securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell.

6 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Current assumptions

 The pandemic has not gone away

 An effective, widely-distributed vaccine will not be in place before end of Q1 2021 at earliest . (“ Living with the virus”, continuing “wealth v health” trade-offs )

 Social distancing/targeted lockdown measures (by region? / by age?) will continue for the foreseeable future

 “K-shaped” recovery: markedly different outcomes for individuals &companies & individuals which can cope/prosper in such an environment.

 Clear blue water between stock market “winners” and “losers”

7 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION What do we look for in a company?

For every stock we ask 3 questions:

Is it a good business?

Is it attractively valued?

Is the outlook improving?

Three complementary considerations that help predict stock returns

8 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Good businesses are “resilient” Companies “future –proofed” against the pandemic not being resolved in the near future.

Sought after characteristics

 A dependable customer base

 High barriers to entry

 Balance sheet strength

 Predictable cash flow

 No imminent re-financings due

= Reliable Earnings + High Probability of Dividends

Source: J.P. Morgan Asset Management as of 31 July 2020.

9 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION K shaped recovery - airlines There has been a marked divergence in performance since Covid-19 caused much of the world to lockdown

12 month share price change: rebased to 100 on 31 July 2019 Investment thesis

Airlines 150 • Wizz Air has a strong balance sheet and good structural growth in Eastern European 130 markets, primarily recreational travel. 110 • IAG has a weaker balance sheet and a focus on business travel, which is expected to be slower 90 to recover.

30 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20

Wizz Air IAG

Source: J.P. Morgan Asset Management, Factset, Bloomberg. Data from 31 July 2019 to 31 July2020. The securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. Past performance is not a reliable indicator of current and future results.

10 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION K shaped recovery - retail There has been a marked divergence in performance since Covid-19 caused much of the world to lockdown

12 month share price change: rebased to 100 on 31 July 2019 Investment thesis

160 Retail • Dunelm and Next have strong online offerings, good cash 140 generation and strong balance sheets. Both are leveraging their 120 strong market positions and existing tech platforms to transition into market leading e- 100 commerce platforms. • M&S has a poor online offering, 80 weak customer perception and ND/EBITDA of c4x. As high street shopping has fallen out of 60 fashion, footfall at their mainly high street stores has suffered. 40 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20

Dunelm Next M&S

11 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION K shaped recovery - financials There has been a marked divergence in performance since Covid-19 caused much of the world to lockdown

24 month share price change: rebased to 100 on 31 July 2018 Investment thesis

110 Life Insurance vs Banks • Life insurance companies have 100 outperformed due to their attractive and relatively safe 90 dividend yields. • Banks face material headwinds from a long term low interest 80 rate environment, higher default rates and a ban on dividend 70 payments by their regulator.

40 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 May-20

FTSE 350 Banks Index FTSE 350 Life Insurance Index

12 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Ocado – still delivering

Year to date share price performance COVID-19 has accelerated growth… is it just the start?

26 25% Revenue Growth (%) 20% 24 15%

22 10% 5% 20 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 18 Investment case 16

 The world’s largest pure play online grocery business which is made 14 economically viable using their proprietary Customer Fulfilment Centres (CFCs).

 COVID-19 has accelerated the shift towards e-commerce. 12 – Immediately heightened demand for their e-fulfilment products.

– Longer term increased demand for their CFCs. 10 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20  CFCs can be used for far more than just groceries which means the total addressable market (TAM) is much larger than current expectations… Purchases Share Price - GBP (LHS)

Source: J.P. Morgan Asset Management, Factset, Bloomberg. All data as of 25 August 2020. The securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. Past performance is not a reliable indicator of current and future results.

13 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Performance & positioning

14 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION “When the facts change, I change my mind” – Winston Churchill

Top Sells since 01/03/20 - % change in share price since sale NATIONAL EXPRESS GROUP BARCLAYS PLC ONESAVINGS BANK PLC COMPASS GROUP PLC MITCHELLS & BUTLERS PLC PLC 03/03/2020 10/03/2020 05/03/2020 03/03/2020 10/03/2020 0%

-25% -21% -24% -28% -50% -54% -75% -62% -100%

Top Buys since 01/03/20 - % change in share price since purchase 100% 100% 75% 57% 54% 51% 43% 50% 25% 0% 23/03/2020 25/03/2020 17/04/2020 15/04/2020 07/04/2020 OCADO LTD INTERMEDIATE CAPITAL DUNELM GROUP PLC FUTURE PLC NEXT PLC GROUP

Source: J.P.Morgan Asset Management, Factset, Bloomberg. All data as of 25 August 2020. The securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. Past performance is not a reliable indicator of current and future results.

15 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Performance since March Covid-19 was an unprecedented shock to financial markets, both in terms of speed and magnitude

What were the results?

15% 11.3%

10% 7.4% Claverhouse IT Benchmark 6.2% 4.9% 5% 3.7% 3.4% 1.9% 1.5% 0%

-5% -2.0% -3.6% -10%

-15%

-20% -20.5% -25% -23.9%

-30% April May June July April - July YTD

Source: J.P. Morgan Asset Management, Bloomberg. Performance data has been calculated on NAV to NAV basis (cum income, debt at par value), including ongoing charges and any applicable fees, with any income reinvested, in GBP. The benchmark is the FTSE All Share Index. Past performance is not a reliable indicator of current and future results.

16 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Returns to shareholders since change of approach JPMorgan Claverhouse Investment Trust plc - 1 March 2012 to 31 July 2020

Share price change versus FTSE All Share Index (%)

250 Returns Since 1/3/2012 (%) JPMorgan Claverhouse Investment Trust plc 76.7% (7.0% p.a.) FTSE All-Share Total Return Index 46.3% (4.6% p.a.) 200

150

100 JPMorgan Claverhouse Investment Trust plc, Total Return (Gross Dividends) FTSE All-Share Total Return Index 50 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020

Source: J.P. Morgan Asset Management. Share price performance figures are calculated on a mid market basis in GBP with income reinvested on the ex-dividend date data. Past performance is not a reliable indicator of current and future results.

17 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Portfolio positions

JPMorgan Claverhouse Investment Trust plc Benchmark FTSE All-Share Index (£) as of 31 July 2020

Top 10 overweight positions Top 10 underweight positions

Portfolio Benchmark Relative Portfolio Benchmark Relative Stock Stock weight (%) weight (%) position (%) weight (%) weight (%) position (%)

M&G 2.8 0.2 2.6 HSBC Holdings 1.2 3.7 -2.5

Intermediate Capital Grp 2.7 0.2 2.5 Diageo 1.2 3.4 -2.2

Games Workshop Group 2.4 0.2 2.2 Vodafone Group 0.5 1.7 -1.1

Phoenix Group Holdings 2.4 0.2 2.2 Reckitt Benckiser Group 1.5 2.6 -1.1

Softcat 2.2 0.1 2.1 National Grid 0.6 1.7 -1.1

Rio Tinto 4.7 2.7 2.1 Glencore 0.0 1.0 -1.0

GlaxoSmithKline 5.7 4.0 1.7 Compass Group 0.0 1.0 -1.0

Next 2.1 0.4 1.7 Lloyds Banking Group 0.0 1.0 -1.0

Legal & General Group 2.2 0.7 1.5 Experian 0.6 1.3 -0.7

AVEVA Group 1.6 0.1 1.5 Smith & Nephew 0.0 0.7 -0.7

Total 28.8 8.8 20.0 Total 5.6 18.1 -12.5

Source: J.P. Morgan Asset Management, Factset. The investment trust is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the Investment Manager without notice.

18 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Dividends

19 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Dividends: the current crisis in context

The worst HoH (%) falls in FTSE All-Share dividends Dividend outlook

H1 2020 H1 2009 H2 2009 H2 2008 H2 2015 0% • UK dividends are expected to fall 45-50% in 2020 -5% -3% -10% • Q2 2020 saw 176 companies cancel their dividends and -11% -15% -12% 30 more cut them – the biggest quarterly fall on record -20% -25% • The shortage of income is a global phenomenon. -30% -25% • The UK market is still expected to yield 4.1% in 2021. -35% -40% -45% -45% -50%

Source: RHS - Bloomberg. Data as at 25th August 2020, covering the last 20 years. LHS - Link Asset Services Q2 2020 Dividend Monitor. Dividends are not guaranteed. Past performance is not a reliable indicator of current and future results.

20 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Claverhouse - a fortress balance sheet Well covered and secure dividend

UK Equity Income Investment Companies

1.16 Peer group 1.14

1.12 JPMorgan Claverhouse 1.10 Investment Trust plc 1.08

1.06

1.04

Dividend cover Dividend 1.02

1.00

0.98

0.96 0.0 0.2 0.4 0.6 0.8 1.0 1.2 Revenue reserves (Years’ dividend)

Source: Numis Securities Research, Datastream, Company Data, Bloomberg, as at 19 May 2020. Covered and secured dividend refers to attempting to minimize the impact of any falls in capital gains and income from the trust. Peer group is the UK all cap peer range. Dividends are not guaranteed. Past performance is not a reliable indicator of current and future results.

21 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Dividends – the advantage of investment trusts Would you like lumpy or consistent?

FTSE All-Share dividend growth by year JPM Claverhouse vs UK Market

20% JPM Claverhouse IT plc 15% 200 UK Market Index

10% 180

5% 160 0% 140 -5% 120 -10% 100 -15% Value of Dividends (Rebased) Dividends of Value 80

2007 2009 2011 2013 2015 2017 2019

2016 2018 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017 2019

Source: Bloomberg, Numis Securities Research. Data as at December 2019. Source: Capita, Company Data, Bloomberg, Numis Securities Research. Please note that UK market data excludes the Vodafone special dividend in 2014. As at December 2019.

Dividends are not guaranteed. Past performance is not a reliable indicator of current and future results.

22 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION JPMorgan Claverhouse Investment Trust plc 47 consecutive annual dividend increases (1972 dividend = 0.48p)

Annual dividend per share

35 Total Dividend (pence per share) +5.5% p.a. 29.0 30 27.5 +7.7% p.a. 26.0 25 23.0 21.5 19.5 20.0 20 18.3 18.9 16.9 17.5

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Claverhouse is one of only 3 “Dividend Hero” Investment Trusts which yields over 4% and has delivered inflation beating dividend increases every year over the past 20 years – AJ Bell*

Source: J.P. Morgan Asset Management, as at 31 December 2019. Dividend growth is calculated as the compounded annual growth rate of dividends paid by JPMorgan Claverhouse Investment Trust plc (excluding special dividends) over the period shown (2008-2018). Not including special dividend of 3.6 pence per share paid in 2008. Dividend paid by the Fund may exceed the gains of the Fund, resulting in erosion of the capital invested. *Source: AJ Bell as at 2 July 2019. A “Dividend Hero” is defined as having increased annual dividends for 20 years or more according to the Association of Investment Companies and includes 20 trusts. https://www.ajbell.co.uk/news/three-dividend-hero-trusts-have-consistently-beaten-inflation

Dividends are not guaranteed. Past performance is not a reliable indicator of current and future results.

23 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Share price discount – 3 years JPMorgan Claverhouse Investment Trust plc

Premium/Discount to NAV (%)

-2

-4

-6

-8

-10 Aug 2017 Feb 2018 Aug 2018 Feb 2019 Aug 2019 Feb 2020 Aug 2020

Source: J. P. Morgan Asset Management. Bloomberg. Data from 31 August 2017 to 31 August 2020. Past performance is not a reliable indicator of current and future results.

24 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Summary

25 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION JPMorgan Claverhouse Investment Trust plc

“ K-shaped” recovery with huge disparities between winners and losers

Resilient companies are likely to prosper and be re-rated

Reliable dividends will be rare and consequently valued highly

Source: J.P. Morgan Asset Management as of 25 August 2020. Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice.

26 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION John D. Rockefeller

“Do you know the only thing that gives me pleasure?

It’s to see my dividends coming in.”

- John D. Rockefeller

Source: Shutterstock.

27 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Appendix

28 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Are UK equities still cheap? UK market cheap on price to book and near the lows of the 1980s

UK Market Price to Book (x)

UK Market Price To Book Value Max Min Median 4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0 1980 1990 2000 2010 2020

Source: Datastream, Morgan Stanley Research. Data from 1 January 1980 to 23 June 2020..

29 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION JPMorgan Claverhouse Investment Trust plc Performance to 31 July 2020

Annualised performance, net of fees (%) Since Three One Three Five YTD inception of months year years years new strategy*

NAV returns 3.51 -23.88 -19.59 -4.26 0.86 6.01

Share price returns -1.77 -26.84 -19.27 -2.45 1.91 6.99

Benchmark returns 1.24 -20.49 -17.79 -3.16 1.60 4.63

NAV excess return +2.25 -4.26 -2.20 -1.13 -0.73 +1.32

Share price excess return -2.97 -7.98 -1.81 +0.74 +0.31 +2.26

Calendar year performance, net of fees (%) 2013 2014 2015 2016 2017 2018 2019

NAV returns 33.87 2.10 5.98 11.25 16.16 -13.46 25.27

Share Price returns 42.94 3.96 3.59 7.22 21.79 -5.47 21.45

Benchmark returns 20.81 1.18 0.98 16.74 13.06 -9.51 19.11

NAV excess return +10.81 +0.91 +4.95 -4.70 +2.74 -4.37 +5.17

Share price excess return +18.32 +2.75 +2.59 -8.15 +7.72 +4.46 +1.96

Past performance is not a reliable indicator of current and future results. Source: J.P. Morgan Asset Management. Performance data has been calculated on NAV to NAV basis (cum income, debt at par), including ongoing charges and any applicable fees, with any income reinvested, in GBP. Share price performance figures are calculated on a mid market basis in GBP with income reinvested on the ex-dividend date. Benchmark is FTSE All Share Index (total return). Index return does not include fees or operating expenses. Excess return calculated geometrically. Returns greater than 1 year are annualised. *Inception of new strategy on 1st March 2012.

30 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Performance attribution

Stock: -1.83 Attribution summary JPMorgan Claverhouse Investment Trust plc Sector: 0.38 for 1 year ending 31 July 2020 Benchmark FTSE All-Share Index (£)

Relative Stock Impact Sector attribution (%) Top contributors weight (%) return (%) (%)

Stock selection Asset allocation Games Workshop Group 1.58 98.80 1.21

Softcat 1.62 35.50 0.68 Leisure Goods (o) 1.24 Spirent Communications 1.23 81.13 0.64 Software & Comp. Serv. (o) 0.95 Tech. Hardware & Equip. (o) 0.63 Intermediate Capital Grp 1.94 0.61 0.49 Aerospace & Defence (u) 0.62 Dunelm Group 0.87 41.45 0.38 REITs (o) 0.50 Relative Stock Impact Top detractors weight (%) return (%) (%) Food & Drug Retailers (o) -0.35 Reckitt Benckiser Group -1.50 29.99 -0.62 Gas, Water & Multi-Utilities (o) -0.37 Construction & Materials (o) -0.81 Rank Group 0.07 -57.16 -0.56 H'h' Goods & Home Construct. (o) -0.87 National Grid -0.63 -10.52 -0.44 Support Services (u) -2.77 Unilever (GB) 0.43 -4.77 -0.39

-4.5 -3 -1.5 0 1.5 3 4.5 Diageo -0.03 -16.85 -0.37

Source: Factset. (o) = overweight, (u) = underweight, (n) = neutral, (s) = short. Data is gross of fees in GBP. Attribution results are for indicative purposes only. The portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the Investment Manager without notice. Past performance is not a reliable indicator of current and future results.

31 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Portfolio positions

JPMorgan Claverhouse Investment Trust plc Benchmark FTSE All-Share Index (£) as of 31 July 2020

Active and absolute sector positions

Relative to benchmark (%)

6 5.3 4.3 4.0 4 3.0 2.9

-2 -1.2 -1.5 -2.6 -2.8 -4 -4.0 -6 Financial Services Life Insurance Software & Household Goods & Construction & Mobile Travel & Leisure Beverages Support Services Banks Computer Services Home Construction Materials Telecommunications

Portfolio Weight (%) 9.9 7.5 5.1 7.3 4.4 0.5 2.2 1.2 2.8 2.7 Source: J.P. Morgan Asset Management, Factset. The investment trust is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the Investment Manager without notice.

32 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION JPMorgan Claverhouse Investment Trust plc

Gearing Buy back / Issuance

 Debt  Repurchase of shares at discounts ≥ 5% in normal – £30m 7% 2020 debenture (matures March 2020) market conditions. Shares to be held in treasury

– £50m facility @1.52%  Treasury shares issued at max 2% discount to NAV (cum income debt at par)  New debt  New shares: issued at premium to NAV, after cost of – £30m 3.22% 2045 debenture (starts March 2020) issue

 Flexible gearing (5% cash to 20% geared)

Source: J.P. Morgan Asset Management as of 30 September 2019.

33 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Investment objective and risk profile JPMorgan Claverhouse Investment Trust plc (the Company)

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 of 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

 The value of your investment may fall as well as rise and you may get back less than you originally invested.  Where permitted, a trust may invest in other investment trusts that utilise gearing (borrowing), which will exaggerate market movements both up and down.  Dividend income payments are not guaranteed and may fluctuate.  This fund may use derivatives for investment purposes or for efficient portfolio Management. Derivatives are complex and trusts that use them for investment purposes may be more volatile. These trusts are considered to be higher risk than trusts that invest only in shares.  External factors may cause an entire asset class to decline in value. Prices and values of all shares or all bonds could decline at the same time, or fluctuate in response to the performance of individual companies and general market conditions.  This trust may utilise gearing (borrowing) which will exaggerate market movements both up and down.  The trust may invest in smaller company shares, which can be more unpredictable and less liquid than shares of larger companies.  The share price may trade at a discount to the Net Asset Value of the company.  The single market in which the Trust primarily invests, in this case the UK, may be subject to particular political and economic risks and, as a result, the trust may be more volatile than more broadly diversified trusts.  The key risks facing the Company and the mechanisms in place to monitor and measure these risks are set out in the Company’s annual report, a copy of which is available from its website, www.jpmclaverhouse.co.uk.

Please refer to the Investor Disclosure Document, latest annual report, and Key Information Document (KID) for more information relating to the Company.

34 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Important information

For Professional Clients only – not for Retail use or distribution

This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken as advice or a recommendation, to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not reliable indicators of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy.

Investment is subject to documentation. The Annual Reports and Financial Statements, AIFMD art. 23 Investor Disclosure Document and PRIIPs Key Information Document can be obtained free of charge from JPMorgan Funds Limited or www.jpmam.co.uk/investmenttrust. This communication is issued by JPMorgan Asset Management (UK) Limited, which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.

Material ID: 0903c02a829c81de

35 FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION