Complete your registration today for a chance to win £50 John Lewis vouchers in our weekly draw Enter now
Fund Profile


Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by CT Global Managed 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.

A new version of this profile is available. View Latest

BMO Managed Portfolio Trust has two distinct share classes: Growth (BMPG) and Income shares (BMPI) each with discrete investment portfolios. Manager Peter Hewitt uses his many years of experience in the market to pick a portfolio of investment companies to suit each objective. Income earned from the growth portfolio can be used to boost the dividend paid to the Income shareholders, which yield 4.6% on an historic basis. This transfer mechanism is discussed under Dividend.

BMPG and BMPI are both managed by Peter Hewitt. Peter seeks to identify investment companies where he believes there are strong management processes and identifiable and distinct strategies that lend themselves to long-term outperformance. As discussed under Portfolio, in recent years this has included significant exposure to companies focussed on ‘secular growth’ opportunities, even in the Income portfolio. The manager looks to diversify across investment styles and asset classes within both portfolios, including incorporating protective strategies designed to preserve or even grow capital in market downturns.

As discussed under Performance, the tilt towards growth strategies has proven highly beneficial over recent years and especially the past 12 months, and both share classes have outperformed their benchmark. Protective strategies also proved their worth in the Q1 2020 drawdown, whilst the market sell-off gave Peter the opportunity to build positions with high entry yields in companies where he believed income streams to be resilient.

Resilience of underlying income and support from the transfer mechanism has ensured that BMPI’s dividend has remained covered this year, as discussed under Dividend. Shareholders are further able to convert shares in either share class to the other once a year without incurring UK capital-gains tax, stamp duty, or dealing charges or ‘spreads’.

Analyst's View

Both BMPG and BMPI have generated strong relative returns over the past year, exceptionally so in the case of BMPG. These strong results, and BMPG benefitting from strategic tilts towards winning growth strategies and structural allocations to protective assets, should be highly gratifying to existing shareholders. Similarly, we estimate that the income transfer mechanism has helped the attractive historic yield of 4.6% (as at 12/02/2021) remain covered. This, we would note, frees up some of the requirement to seek income within BMPI’s portfolio and allows Peter to retain a greater exposure to opportunities for capital growth whilst maintaining and growing the dividend than might otherwise be the case.

Nonetheless, the degree of outperformance from BMPG in particular is very extended relative to history. We note the manager’s comment to the effect that he does not believe the tailwinds many top holdings enjoyed in 2020 will be replicated in the coming months (though he remains positive), and we would concur with this. The announcement of COVID-19 vaccine developments in November 2020 proved positive for the relative fortunes of ‘value’ strategies but a headwind for BMPG on a relative basis (though absolute returns were strong subsequently). We would anticipate any trend towards value or UK outperformance and/or rising inflation as likely to prove a near-term headwind for both share classes.

bull bear
Performance has been strong over both the long and short term
UK outperformance to the rest of the world would likely be a headwind relative to the benchmark
Income shares offer attractive yield which remains covered by income
Gearing can exacerbate downside, as well as amplify upside
Share conversion facility allows shareholders to adjust to changing portfolio requirements tax efficiently
Limited to no discount opportunity
Continue to Portfolio

Fund History

09 Apr 2024 Fund Analysis
Easing rates may act as a catalyst for CMPG’s and CMPI’s underlying holdings to re-rate…
10 Jan 2024 Definitely maybe
Fund flows and discounts may shed some light on a once-in-a-generation opportunity…
18 Oct 2023 Computer says no
Markets are fixated on replacing humans with AI, rather than maintaining them with biotech. Could this be an opportunity to rotate profits?
07 Sep 2023 Fund Analysis
Attractive valuations across growth markets offer a good opportunity for CMPG/CMPI investors…
12 Jul 2023 Many hands make light work
We break down how multi-managers have performed over the past five years and their positioning for the inevitable uncertainty that lies ahead…
14 Dec 2022 Fund Analysis
The flexibility of a dual-share class strategy can provide a core solution for long-term investors…
06 Jul 2022 A game of two halves
In the second article of our series on the AIC Flexible Investment sector we see how performance has stacked up during two years when markets were poles apart...
30 Mar 2022 You say tomato…
Do it yourself or put it into a global fund and leave it to the experts - our analyst debate the merits of each approach...
16 Feb 2022 Fund Analysis
A ready-made portfolio of investment trusts with growth (BMPG) and income (BMPI) flavours…
21 Jul 2021 Every which way but loose
We break down the AIC Flexible sector into more useful segments…
24 Mar 2021 Shoot to Thrill: ISA targets for long term growth
We all intend to invest for the long-term but can often be distracted by the news...
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: BMO Managed Portfolio
Download the presentation and listen to the audio from our 'Ideas for your ISA' Spring Conference on 04 March...
04 Mar 2021 Fund Analysis
Offering both Growth (BMPG) and Income (BMPI) share classes, BMO Managed Portfolio Trust allows shareholders to switch annually between share classes in a tax efficient manner...
10 Feb 2021 Eye of the Pfizer
Mining shares have rallied in recent months. With further potential, what impact could this have on the relative returns of active UK Small cap strategies...
20 Jan 2021 Kepler's top-rated investment trusts for 2021
We update our annual quantitative ratings for investment trusts…
03 Sep 2020 Fund Analysis
With Income and Growth shares, the BMO Managed portfolio offers different solutions to investors with different objectives through investment in a diversified portfolio of investment companies...
09 Oct 2019 Fund Analysis
With Income and Growth share classes, the BMO Managed portfolio offers different solutions to investors with different objectives through investment in a diversified 'fund of funds' wrapper...
25 Sep 2019 One-stop shop: how multi-asset trusts offer superior diversification
Investment trusts are particular suited to this mode of investing. We examine their advantages over open-ended funds and highlight the trusts which do it well…
View all

Welcome to Kepler Trust Intelligence

Please enter a valid email address
Please enter a valid password
Please enter a valid email address
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
Please enter a company name
Please enter a location name
Please choose an option
Please enter a platform
Please choose an option
Please enter a trust
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
Please select an option
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
Please enter your first name
Please enter your last name
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
Please enter a valid password
Please enter a valid password
How will this information be used? Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase.
Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies, but parts of our site won’t work without them. By using our website you accept our use of cookies. For further information please refer to the Kepler Privacy Notice.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.