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Fund Profile

Martin Currie Global Portfolio 10 September 2021

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 (MNP) follows a concentrated, highly active approach to global equity investing. Under the management of Zehrid Osmani, MNP follows a conviction approach, not only utilising a detailed approach to stock selection but also following a complex diversification process. Zehrid accounts for more than a company’s risk/return profile when constructing MNP whereby he also diversifies his exposure to a number of less conventional factors, such as end market exposure type and thematic trends. Thematic trends are also a key element in how Zehrid identifies potential opportunities, with MNP’s current trends broadly categorised between: Demographic changes, Future of technology, and Resource scarcity.

MNP has managed to outperform both its benchmark and its peer group average, with MNP ranking as fourth amongst global peers since Zehrid took over approaching three years ago. As we outline in the performance section, MNP’s performance has also been accompanied by strong risk statistics, the result of the strategy’s lower volatility and market sensitivity, as opposed to just its strong returns.

ESG also plays a huge role in Zehrid’s process, with MNP receiving strong ratings from ESG data providers. Zehrid uses an extremely detailed ESG process, described in detail in our ESG section, where over 70 individual ESG risk factors are analysed for each company, using a proprietary risk process.

MNP’s share price continues to trade tightly around its NAV, a result of the boards ‘zero discount’ policy, where they proactively intervene to control it. MNP also utilises structural gearing, adopted by the board relatively recently, as well as having adopted a new charging structure, to reduce costs as the trust grows.

Manager update:

13 July 2021: Zehrid Osmani gives a summary of one of the strongest reporting seasons, discusses the regions that offer most potential and what the leading indicators are telling us.
Analyst's View

We believe MNP offers investors a compelling ‘quality growth’ proposition with Zehrid continuing to invest in the same disciplined manner as he has done over the past three years. With hindsight this has served him well, as his commitment to quality growth allowed MNP to outperform throughout multiple phases of the pandemic. In our view MNP might not only be attractive to investors seeking ‘quality growth’ exposure, but also to those looking to diversify a pre-existing global portfolio, as MNP contains few of the mega-cap tech names that often characterise passive global exposures, not to mention its historic lower market sensitivity. However, MNP is concentrated into a small set of sectors, which investors may need to account for in their overall allocation. This is a conscious decision by Zehrid, who prefers to focus on Consumer, Industrials and Technology stocks, given his belief that they create superior value for shareholders over the long term. MNP’s very strong ESG credentials also make it a potential solution for sustainably-minded investors seeking to add global equity exposure.

If the current market continues to be supportive of stock specific factors rather than trend following, we believe that the environment may continue to be conducive to MNP’s performance, given the manager’s focus on bottom-up stock picking. Likewise, another surge in COVID-19 infections may lead to another ‘flight-to-quality’, which may also support the ‘quality’ companies within MNP’s portfolio. However, if we are able to successfully navigate the delta variant, it may lead to another value rally, a scenario in which MNP has underperformed previously. We also note that MNP’s ‘zero discount’ policy means investors are unlikely to find discount opportunities in which to buy into the trust, even if the latter scenario plays out.

Bull bear
Disciplined and nuanced approach to 'quality growth' investing Gearing can amplify losses
Strongest ESG credentials of any investment global equity trust Quality growth bias can under-perform during rotations into value stocks
Has outperformed during the majority of the pandemic phases High, but intentional, sectoral concentration may diminish diversification for certain investor types
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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