Fund Profile

Martin Currie Global Portfolio 17 February 2021


Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Martin Currie Global Portfolio. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

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Martin Currie Global Portfolio Trust (MNP), managed by Zehrid Osmani, offers investors a concentrated portfolio of global equities with a high active share of c. 97%, differentiating it from both its peers and its benchmark. MNP’s impressive track record is in large part thanks to Zehrid’s successful stock selection and three-part investment process, outlined in detail in the Portfolio section. Zehrid’s forward-looking approach to analysis has led him to create a robust portfolio which has been partly insulated from the impacts of COVID-19, having accounted for just such a worst-case scenario prior to the outbreak. The team also make exhaustive use of proprietary ESG analysis, and MNP ranks in the top 2% for sustainability amongst over 6,700 global equity peers.

Since taking over sole management of MNP in October 2018, Zehrid has generated an NAV total return of 42%, exceeding the MSCI ACWI benchmark’s 22.9% return over the same period. It is important to note that this performance was achieved with a substantial underweight to the large-cap technology stocks which have driven a significant proportion of global equity markets’ performance over the last two years. Despite its commendable performance, MNP has traded closely to NAV, helped by the board’s proactive policy of discount control, and currently the trust trades on a premium of 3.1%.

Recently MNP has enacted a new gearing policy to better take advantage of the trust structure, whereby it has implemented £30m in gearing, equivalent to 9% of the current NAV. Alongside this the board has seen fit to implement a new charges structure, with the intention of simplifying the overall cost of the strategy.

Kepler View

We view MNP as a highly differentiated, high-conviction portfolio due to its zero exposure to FAANG stocks and high active share. Zehrid’s strategy of constructing a diversified portfolio, rather than simply being overweight to his highest-conviction stocks, gives us confidence in MNP’s ability to offer clients a superior source of diversification. From the start of his tenure Zehrid has been able to provide returns in excess of those of MNP’s benchmark, despite MNP’s underweight to mega-cap technology shares, ultimately fulfilling the trust’s objective of outperformance.

The two recent changes to MNP, specifically the introduction of £30m in gearing and reduction in fees, are ultimately a benefit for investors. The introduction of gearing will improve the overall return potential of MNP (given its long-term outperformance), as well as making use of the unique advantages of a trust’s structure. The change in the fee structure reflects the board’s desire to grow the trust, something we also foresee occurring given Zehrid’s record of outperformance.

While we believe MNP’s advantage ultimately lies in its ability to provide both superior returns and diversification, the presence of a modest yield is welcome. MNP’s track record of growing, or at least maintaining, its dividend over the last 16 years is yet another attractive feature of an already competitive trust. Its ESG credentials are almost unrivalled in both the open- and closed-ended spaces, with a five-globe rating from Morningstar making it an excellent choice for a sustainability-minded investor.

Diversified portfolio of global equities with high active share
Large bias to quality growth stocks may cause underperformance in a value recovery
Strong outperformance since the manager took over
Manager’s intentional avoidance of direct exposure to the FAANG stocks has been an overall detractor
Portfolio does not hold traditional mega-cap names, yet has still generated strong returns
Recent use of gearing may negatively impact performance during down markets
Continue to Portfolio

Fund History

20 Jun 2024 Fund Analysis
MNP’s manager, Zehrid Osmani, believes the potential of AI is still being underestimated by the market…
19 Feb 2024 BlackRock Greater Europe and Martin Currie Global Portfolio may benefit from a change in China’s fortunes
Exposures to Europe’s luxury goods may offer a ‘safer’ exposure to a potential recovery in China…
05 Dec 2023 Don’t Panic!
Our analysts look for value against a backdrop of bombed out investment trust discounts…
08 Nov 2023 Once more into the breach?
With yawning discounts across the board, some sectors have been hit harder than others - our analysts think there could be value there for those with the sangfroid to fight for it...
13 Nov 2023 Martin Currie Global Portfolio and Henderson European Focus Trust
Zehrid Osmani and Tom O'Hara
Rewatch this webinar which is part of our November online event 'Discounted opportunities in a tough market'...
Watch Recording
04 Oct 2023 To gear, or not to gear...
We examine the impact that rising rates have had on fund managers' appetite for gearing as a means to spice up returns...
13 Sep 2023 Fund Analysis
MNP’s Zehrid Osmani believes stocks exposed to AI have room to run…
11 May 2023 Tipping point
Battered growth strategies have staged a comeback recently, but what happens now?
19 Apr 2023 Are we nearly there yet?
We look at which trusts have done best year to date, and ask where there may be value…
27 Mar 2023 Fund Analysis
MNP’s quality growth focus may benefit long-term investors as fundamentals take centre stage…
07 Nov 2022 Slides and Audio: Martin Currie Global Portfolio
Download the presentation and listen to the audio from our webinar from 4 November...
17 Aug 2022 The world for sale
While investment trusts are lagging their open-ended cousins in the global sector, their discounts may provide an attractive entry point...
18 May 2022 Riding out the storm
We look at trusts with tightly governed discounts which may appeal to investors in volatile markets…
13 Apr 2022 Fund Analysis
MNP’s exposure to strong secular growth may make it an attractive long-term opportunity…
19 Jan 2022 Apples and pears
We examine the relationship between the demand for open- and closed-ended funds, and ask whether investor behaviour can be predicted...
08 Dec 2021 We are the (ESG) champions
Investment trusts tend to be amongst the best-performing ESG strategies in the combined open- and closed-ended universe…
24 Nov 2021 Holding back the tears
While the final text of COP26 fell short of what many had hoped for, the writing is on the wall for fossil fuels and, from an investment perspective, the age of sustainability has only just begun…
10 Nov 2021 Fantastic growth funds (and where to find them)
We found them in India, Japan, frontier markets, healthcare and the global sector – and here they are…
10 Nov 2021 Slides and Audio: Martin Currie Global Portfolio
Download the presentation and listen to the audio from our 'Fantastic growth funds (and where to find them)' conference on 4 November...
03 Nov 2021 Don't fear the reaper
With market direction hard to call, we consider the case for taking a long-term view in the investment trust sector…
20 Oct 2021 Board games
Investment trust boards talk a good game about championing shareholders interests - but do they really deliver?
10 Sep 2021 Fund Analysis
MNP has shown great resilience during the pandemic, thanks to its focus on ‘quality growth’ and diversification…
19 Aug 2021 Pandemic immunity
We ask which global equity trusts have outperformed through the different stages of the pandemic…
26 May 2021 Stand and deliver
Is a high OCF daylight robbery or should investors keep calm and carry on? Our analysts debate the perennial question…
21 Apr 2021 Results analysis: Martin Currie Global Portfolio
We dissect MNP’s annual results, with the trust continuing to outperform global equities, while retaining the same diversified, risk conscious portfolio…
10 Mar 2021 Spring Conference '21
Audio and presentations from 21 of the UK’s leading investment trust managers…
04 Mar 2021 Slides and Audio: Martin Currie Global Portfolio
Download the presentation and listen to the audio from our 'Ideas for your ISA' Spring Conference on 02 March...
17 Feb 2021 Fund Analysis
Utilising a complex investment process and concentrated portfolio, MNP has a track record of outperforming global equities…
04 Feb 2021 Eurovision 2021
Eight charts to guide investors through Europe...
16 Dec 2020 My haven’t you grown!
How sustainability has gone from zero to hero in 2020…
06 Aug 2020 Recipe for disaster?
In this article, we assess whether the recent shift to concentrated portfolios has been beneficial or detrimental during corrections…
08 Jul 2020 Fund Analysis
One of the most exciting trusts in the Global sector, MNP offers a concentrated portfolio of growth opportunities…
05 Feb 2020 The best form of defence
We look at the continued rise of passive funds, and find out how investment trust managers are countering it...
23 Oct 2019 Sail away: the best trusts to escape the UK
We look under the hoods of Global sector trusts to see which offer the best diversification prospects for UK investors...
19 Sep 2019 Rebels no more...
Climate change and sustainability is now mainstream - we launch ESG analysis into all of our fund research…
04 Sep 2019 Fund Analysis
Since taking over the portfolio last year, Zehrid Osmani has achieved exceptional returns through a highly concentrated portfolio of growth companies…
14 Aug 2019 Dangerous ground: the perils of timing the market
Our research shows that attempting to time the market is, more often than not, a mug's game...
03 Apr 2019 Nice guys finish first
We review the rise of ESG, its impact on investment trusts, and the various ways ESG has evolved in the trust world...
03 Apr 2019 ESG: Integration
Here we explain what ESG integration is and how managers apply this type of strategy to their trusts...
11 Mar 2019 Fund Analysis
Martin Currie Global Portfolio Trust (MNP) aims to achieve long-term capital growth, in excess of the FTSE World index, whilst offering solid income for investors...
26 Apr 2018 The $23.9 trillion dollar question*
Are US equities, which have hit record highs on 71 occasions in the last 12 months, overpriced or are they actually trading at a price worth paying?
20 Apr 2018 Fund Analysis
A globally focused portfolio aiming to deliver long-term capital growth, in excess of the FTSE World Index, while offering a solid yield relative to the sector.
02 May 2017 I'm not interested in 'me-too' portfolios...
We meet Martin Currie's head of income Mark Whitehead and ask how he is helping to shape the group's equity income strategy...
07 Jul 2015 Fund Analysis
10 Jun 2015 Liquidity: Punching above their weight
Five small yet highly liquid trusts which should be on your radar
View all

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