Fund Profile

Martin Currie Global Portfolio 04 September 2019

Disclaimer

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.

Overview
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Overview

Martin Currie Global Portfolio Trust (MNP) aims to achieve long-term outperformance of the FTSE World Index from a portfolio of 25-40 high-growth companies from around the world.

Zehrid Osmani is at the helm of the portfolio, having joined the team in June 2018 and taking sole management of the portfolio in October 2018, and is constantly striving to identify undervalued, high-quality companies that can offer investors consistent returns. The process is built around a proprietary ‘toolkit’, where financial models, qualitative and thematic research are utilised to narrow the universe of around 3000 companies down to 500. After this, more detailed analysis is conducted, with Zehrid and his team identifying companies that generate high returns on their capital, have attractive growth profiles and have the potential to sustain or further improve it.

Since his appointment, Zehrid has been given greater flexibility in his investment decisions, increasing his allocation to high-growth companies and the portfolio’s concentration. It now consists of 33 holdings, in comparison to the average trust in the AIC Global sector has 127 holdings.

In performance terms, MNP has long been one of the stand out performers in the Global sector. Tom Walker was at the helm of the portfolio since the launch of the trust in 1999 and during his tenure delivered NAV total returns of 9.52% p.a., outperforming the FTSE World Index, which returned 8.9% p.a. over the same period. Zehrid has been able to do even better during his short time in charge of the portfolio: he has delivered 17.2% returns since July 2018, considerably more than the benchmark FTSE World (11%) and almost triple the AIC peer group which delivered 5.5% on average. Over this period, only Nick Train of Lindsell Train, has generated greater levels of alpha relative to their Morningstar best fit benchmarks, however MNP has done so at lower levels of volatility.

In July 2013 a zero-discount policy was introduced and since then the trust has predominantly traded at or around par. Throughout 2018 the average discount for the trust was 0.9%, however, 2019 has seen the trust move further towards trading at a premium and as of the 26 August 2019, the trust is trading at a premium of 0.4%. The weighted average discount within the AIC Global sector currently sits at 1.2%.

Recent podcasts by the manager of this trust

Kepler View

Zehrid brings with him an extensive track record of generating alpha, and this has already been reflected in the trust’s performance since he joined the company in June 2018. The performance of the trust has been exceptional since his appointment and he has considerably outperformed the benchmark and peers in NAV total returns. This has been aided by his higher conviction approach, and the move towards more ‘growthy’ companies. These companies are considered to be the highest quality, and ones that he believes will continue to deliver high returns on capital and compound growth in their earnings throughout the cycle.

The strong performance has been reflected in the trust’s move from a discount to a premium and the board’s ability to now grow the trust through issuing shares. With this said, the zero-discount policy means that investors need not worry about the discount widening. Therefore, we see the trust as a great vehicle for investors who might not like discount volatility but want to enjoy the benefits of the closed-ended structure.

bull bear
New manager with a strong performance since appointment and a strong process for generating alpha Trading at a premium, but the zero discount policy means that it is unlikely to be for long
High conviction global portfolio of 33 high quality growth companies Growing but still relatively small in comparison to others in the sector
Zero discount volatility, whilst having the structural advantages of an investment trust
Low cost
Continue to Portfolio

Fund History

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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