They have produced an annualised return of 5.6pc, versus 5.3pc for the FTSE All-Share index, over the past decade. Given that the trust’s holdings are geographically diversified, it is likely to benefit from an improving global economic outlook as the era of high inflation and restrictive monetary policy gradually comes to an end.
Questor expects dividend shares to become increasingly popular in such an environment thanks to the waning appeal of cash and the inability of bonds to produce income growth at a time when dividends are likely to rise.
In terms of hard facts, therefore, JP Morgan Claverhouse has great appeal. Its relatively high yield, excellent record of dividend growth, wide discount to net asset value and sound past performance make it a logical purchase for long-term investors who want income as well as capital growth.
However, many investors will hesitate to buy any investment trust…
