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Fund Profile

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by MIGO Opportunities. 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
Manager Nick Greenwood argues current investment trust discounts present a once-in-a-generation opportunity…
Overview

MIGO Opportunities (MIGO) is managed by Nick Greenwood who aims to exploit the inefficiencies in the UK closed-ended funds market. In particular, Nick looks to find opportunities in closed-ended funds that are under-appreciated by the market, where the market isn’t accounting for something in the NAV or the corporate structure. Often, this means buying at a deep discount and waiting for an identified catalyst to close that discount over time. The ideal situation for Nick is one in which NAV performs well and a deep share price discount is closed by a factor the market has overlooked, leading to potentially extremely attractive returns.

Nick believes the autumn of 2023 is a “once-in-a-generation opportunity” thanks to the wide discounts across the market. Currently, his top 12 holdings are on an average 31.3% discount. Nick is particularly excited about the opportunities in the listed private equity sector, in uranium, Vietnam, and Japan, speaking to the deep diversity of the portfolio. In fact, the cash allocation in the portfolio has been ticking down over this year, reflecting all the opportunities Nick sees.

Nick has managed MIGO since it launched in 2004. It was recently announced that the investment management duties are to be transferred from Premier Miton Investment Management to AVI Global Investors (AVI) in December 2023. However, this will also see Nick join AVI to continue his position as manager of the trust, alongside the reinstating of Charlotte Cuthbertson as co-manager (see Management).

The idiosyncratic nature of MIGO’s investments can at times significantly enhance performance, but at times can lead to underperformance—with the diversification of holdings lagging the technology and consumer-driven global indexes during market rallies such as that seen over the last 12 months (see Performance).

Analyst's View

In our view, the discounts currently available in the investment trust space are likely to present a great long-term entry point, even if the gloominess of the economic outlook means this is harder to see than to act upon. MIGO offers investors a way to get access to a basket of deep discount opportunities with considerable diversification in the portfolio and a professional manager tracking day-to-day the often complicated and quick-moving underlying situations. In fact, as we discussed in a recent strategy article, boards are increasingly taking severe action to close discounts, which offers the potential for strategies like Nick’s to see some exceptional returns in a short period of time.

In recent months, expectations that rates will go higher and stay higher for longer have hit asset prices and widened discounts across the board, which has led to some difficult performance for MIGO. However, we would expect MIGO to come into its own once these pressures ease, and the trust has proven to deliver excellent returns compared to markets in the past, driven by individual catalysts across core themes or through an improvement in risk sentiment. As interest rates look to be plateauing, we believe we could be close to the moment of maximum opportunity both at the NAV level and the discount level.

Bull

  • Offers diversification across more esoteric asset classes
  • Underlying holdings trading at historically wide discounts to NAV
  • Highly experienced longstanding lead manager

Bear

  • High KID RIY due to the trust-of-trusts structure
  • Discounts of more illiquid underlying holdings can be more susceptible to widening in challenging market conditions
  • Difficult market conditions may result in a persistent discount for less well-understood alternative strategies
Continue to Portfolio

Fund History

10 Jan 2024 Definitely maybe
Fund flows and discounts may shed some light on a once-in-a-generation opportunity…
29 Nov 2023 Fund Analysis
Manager Nick Greenwood argues current investment trust discounts present a once-in-a-generation opportunity…
25 Oct 2023 We’re going to need a bigger boat...
We argue corporate activity is picking up, making the investment trust sector an exciting place to invest…
27 Sep 2022 Fund Analysis
MIGO’s underlying discount to NAV has rarely been wider…
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...
20 Apr 2022 Fund Analysis
MIGO’s underlying discounts are currently wide relative to history…
14 Apr 2022 The inevitabilities: death and taxes
Biotech has had a rough ride lately but, as the world gets older and richer, our analysts think long-term secular growth is inevitable…
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...
11 Aug 2021 Fund Analysis
MIGO’s managers report that market conditions continue to offer them attractive discount opportunities...
21 Jul 2021 Every which way but loose
We break down the AIC Flexible sector into more useful segments…
02 Jun 2021 Fortune favours the brave (sometimes)
Our research suggests wide discounts often herald high NAV returns too…
19 May 2021 The complexity premium
We examine the idea that extra returns can be obtained from buying investments which are perceived to be more complex by most investors...
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...
17 Dec 2020 Fund Analysis
Investing in a diverse array of other trusts, MIGO seeks to build a portfolio with significant embedded value...
11 Nov 2020 Now that's what I call a discount!
Presentations and audio from our conference focussed on discount opportunities in the investment trust sector…
11 Nov 2020 Slides and Audio: Miton Global Opportunities
View the presentation and listen to the audio from our 'Discounts in Focus' event on 05 November...
22 Oct 2020 Spotlight on discounts
As our event focussed on discounts approaches, we update our portfolio of discount opportunities and review discounts across the wider IT universe…
09 Jul 2020 Fund Analysis
Using a diverse array of investment trust strategies, MIGO seeks to build a portfolio of trusts with significant embedded value...
06 Nov 2019 Times are a changin'? The case for a value resurgence
We are in the midst of the longest period of value underperformance since the 1920s. Could we be approaching a change in environment?
23 Oct 2019 Kepler Rated: Miton Global Opportunities
This trust pursues a highly specialised 'fund of funds' approach, aiming to identify discounts which the manager thinks do not reflect reality...
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…
25 Sep 2019 Fund Analysis
Using a diverse array of eclectic investment trust strategies, MIGO seeks to build a portfolio of trusts with significant embedded value...
13 Feb 2019 Fund Analysis
A highly differentiated fund of investment trusts, which has delivered annualised returns of 7.5% since launch in 2004...
30 May 2018 Fund Analysis
A highly differentiated special opportunities fund of funds, managed by one of the most experienced managers in his sector...
20 Mar 2018 Star struck
Star culture presents siginficant problems for asset management companies when top managers jump ship. We examine the steps some groups take to avoid them...
30 Aug 2017 Smoke and mirrors?
We analyse whether investors should really focus on discounts and premiums when making their investment decisions...
09 Mar 2017 Fund Analysis
A global trust of investment trusts that is diversified in terms of regions and asset classes..
View all

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