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Fund Profile

CT Global Managed Portfolio 14 December 2022

Disclaimer

This is a non-independent marketing communication commissioned by Columbia Threadneedle Investments. 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

CT Global Managed Portfolio Trust (LON:CMPI) is a fund of investment companies which offers investors access to two portfolios, each with a distinct investment objective. Both portfolios are benchmarked against the FTSE All-Share Index with the Growth portfolio focussed on generating capital gains and the Income portfolio focussed on providing an income greater than that of the benchmark. The unique dual-share class structure provides an annual opportunity for investors to transfer between the Growth share class (CMPG) and the Income share class (CMPI) without incurring any additional costs or UK capital gains tax.

While the Investment Manager BMO GAM (EMEA) has merged with Columbia Threadneedle Investments, the trust remains under the stewardship of long-standing manager Peter Hewitt, whose investment trust experience spans across multiple decades. Peter is focussed on identifying managers that offer a diversified range of styles which demonstrate strong long-term performance over multiple market cycles. As discussed in Portfolio, persistent inflationary pressures and ever-higher interest rates have led Peter to shift the portfolios’ style away from more growth-orientated strategies whilst adding to those with either a value, more defensive or alternative bias. The portfolios are global in scope, however, they do have a geographical bias to the UK, at over a third of the allocations.

Peter maintains an exposure to long-term secular growth sectors such as healthcare, biotechnology and technology, as he maintains the belief these will be the long-term drivers of growth. As discussed in Performance, such positioning has proven accretive to performance over the long term. However, over the past 12 months relative and absolute performance has faced headwinds, particularly for the Growth portfolio.

The Income portfolio’s Dividend has proven resilient over the long term which has been helped by the income transfer mechanism between the two share classes.

Analyst's View

We believe that the unique dual-share class structure and Peter’s diversified approach may provide benefits that are unavailable elsewhere in the market. The opportunity to switch between share classes with zero-cost drag on returns makes it an attractive investment vehicle to suit the changing needs of longer-term investors, with such flexibility potentially allowing the trust to provide a core holding in a broader portfolio of assets.

Over the last 12 months, Performance has been impacted, particularly from a Growth share class perspective. However, Peter has shown that he is willing to be dynamic with allocations to manage the shift in macroeconomic conditions experienced over this period. We believe that the more balanced approach taken, particularly within the growth portfolio (CMPG), may dampen the impact of further rate increases as inflation pressures persist, whilst maintaining an exposure to technology and healthcare sectors which may prove resilient in a recessionary environment.

In addition, the Discount control mechanism has proven beneficial by minimising discount volatility and increasing liquidity for shareholders. When this is combined with a resilient and attractive dividend yield, through the transfer of income from the growth portfolio, and the increased focus on allocating to income streams that may be less correlated to wider macroeconomic fluctuations, CMPI may prove to be an attractive option for income investors.

Bull

  • Annual share conversion facility provides flexibility for investors
  • Manager remains flexible in investment approach during structural economic shifts
  • Income portfolio offers a well-covered and attractive yield

Bear

  • Performance impacted by strong value rotation
  • Fund of fund structure does result in high OCF and KID RIY
  • Gearing on the Income shares increases sensitivity to falling markets
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…
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