Fund Profile

Martin Currie Global Portfolio 27 March 2023

Disclaimer

This is a non-independent marketing communication commissioned by Franklin Templeton. 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 (LON:MNP) aims to offer shareholders a differentiated, benchmark-agnostic global equity investment solution. Manager Zehrid Osmani seeks to identify quality-growth companies set to benefit from the most exciting secular growth trends. This includes a high exposure to companies providing technology and healthcare solutions, and those set to benefit from the impacts that supply chain constraints, geopolitical tension, and environmental solutions are having on the availability of resources. MNP is also exposed to the growth of the global consumer via European luxury goods companies.

Zehrid’s success in fundamental equity research has allowed him to refine the investment process and develop a systematic investment strategy that he employs alongside the trust’s additional eight dedicated investment professionals. The aim is to uncover companies with demonstratable competitive advantages, superior accounting practices, and an efficient allocation of capital which leads to sustainable cash flow generation over the very long term. An emphasis on strong ESG characteristics is of equal importance and MNP remains in the top percentile of all global equity large-cap funds for sustainability according to Morningstar.

A sharp adjustment in economic conditions over 2022 has impacted Performance. Despite this, Zehrid maintains his high conviction in the strategy, believing the fundamental strength of the holdings means they should hold up well in an environment of high inflation and higher interest rates. The board has been actively buying back shares implementing MNP’s discount control policy, the trust is currently trading on a wider than average Discount of 1.6%.

Analyst's View

We think Zehrid’s strategy is attractive for long-term investors and has proven its ability to add value in more favourable circumstances. The full integration of Zehrid’s highly systematic proprietary ESG model leaves no stone unturned and is a significant contributor to the investment process, which combined with the focus on secular growth trends throughout the portfolio may suit those with a long-term investment horizon.

Zehrid’s unwavering commitment to quality growth has meant performance was impacted over 2022 by the dramatic shift in economic conditions. However, should the strain on valuations caused by inflation and interest rates ease, we think MNP is well-positioned as the focus on the fundamental strength of investee companies returns: Zehrid’s high conviction and relatively high gearing means the portfolio has the potential to see a sharp bounce-back in performance.

Bull

  • Manager remains committed to the long-term growth strategy which may offer a more benchmark-agnostic solution
  • A change in economic conditions and maintained gearing may lead to a sharp bounce-back in performance
  • Significant focus on ESG characteristics of underlying holdings

Bear

  • Structurally different macro environment may continue to present challenges to growth strategy
  • Commitment to gearing can amplify losses
  • Zero discount policy has led to significant buybacks which are shrinking the market cap
Continue to Portfolio

Fund History

16 Feb 2024 Are we exclusive now?
Whisper, don’t shout, but the European luxury goods sector is one of the top-performers over the last five years…
19 Jan 2024 Finding your Eurovision
As one of the top-performing sectors, why does Europe remain strangely out of favour with UK investors?
17 Nov 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
06 Oct 2023 Are you ready for your closeup?
We explain how the professionals go about building a peer group…
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...
31 Aug 2022 Growth at an unreasonable price
Growth has taken a beating as inflation fears have soared, but the tide may be turning and we have six speakers at our next event ready to tell us why…
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
We highlight potential opportunities within the European investment trust space…
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 - so we are adding 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 market timing
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 Fund Analysis
A globally focused portfolio aiming to deliver long-term capital growth while offering a solid yield...
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?
05 Oct 2016 Fund Analysis
A globally diversified trust seeking to deliver income and capital growth, with a discount management policy in place which virtually eliminates discount volatility...
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