Fund Profile

Momentum Multi-Asset Value Trust 19 January 2022


This is a non-independent marketing communication commissioned by Momentum Global Investment Management. 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.

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Momentum Multi-Asset Value Trust (MAVT) is a ready-made portfolio investing in a broad range of assets, including UK and overseas equities, credit, and specialist alternative assets, using a value-based approach across all investments. The trust objectives are to provide a dividend that grows in excess of inflation, to generate a total return greater than UK CPI + 6% per annum over a full market cycle and to exhibit less risk than a full equity portfolio.

As discussed in Portfolio, the four-man management team of MAVT use a hybrid approach, buying direct stocks in the UK portion of the portfolio and using highly active, specialist third party managed open and closed-ended funds elsewhere.

MAVT has performed well against a passive portfolio tracking its strategic asset allocation in recent years, performing in line despite having a strong stylistic headwind for most of the period thanks to its value tilt. Against a value-tilted passive portfolio, MAVT has added significant alpha, as we discuss under Performance. With this in mind, MAVT could be employed as a standalone portfolio for a value and UK-orientated investor or be used to diversify a portfolio with existing growth exposures.

The current yield of c. 3.5% compares favourably with the FTSE UK All-Share Index yield of 3.1%, and the board have indicated a likely increase in the level of Dividends for the financial year ending April 2022, barring unforeseen circumstances.

MAVT employs a discount control mechanism (DCM) which, as discussed in Discount, to date has been successful in ensuring the shares of the trust trade close to NAV.

Analyst's View

MAVT provides investors with an off-the-shelf multi-asset portfolio that can be used as a stand-alone holding for a value-orientated investor or to diversify a portfolio with exposures to global growth stocks. Currently, given the valuation spread between highly rated growth stocks and value stocks is at or near all-time highs globally, the diversification aspect is particularly attractive to our minds. Of course, if markets continue to be led by highly rated growth stocks, then MAVT should not be expected to keep up returns-wise with global equity benchmarks.

The exposure to a broad range of assets, especially in alternative spaces such as infrastructure and speciality finance, could be of particular value to investors who would otherwise find it hard to access such strategies due to portfolio size constraints or the capacity to perform the appropriate due diligence. These specialist assets contribute significantly to the dividend yield of c. 3.5%, which may entice income investors, potentially as a substitute for or a complement to more traditional UK equity income strategies. The differentiated sources of income have been of particular benefit to the trust during the pandemic, increasing the resiliency of the portfolio earnings when compared to UK equities. MAVT may appeal to more cautious investors for whom dampened volatility versus a pure equity portfolio would provide comfort, this being reinforced by the discount control mechanism which currently means investors can have confidence they will be able to redeem their shares near NAV.

bull bear
Access to a hybrid portfolio of niche, boutique, highly active funds and direct UK stocks
UK and value focus will likely lead to lagging returns if international and growth assets outperform
Attractive, well-diversified yield, well supported by income and reserves
Gearing can exacerbate downside as well as amplify upside
Value sensitive approach should protect portfolio in the event of a growth bubble
DCM has led to substantial buybacks, and further reduction in share count could raise costs and threaten the viability of the trust
Continue to Portfolio

Fund History

20 Apr 2023 Fund Analysis
MAVT offers a diversified source of inflation-protected income and growth…
10 Feb 2023 Wrong when it’s right
Economic data is balanced on a knife edge, but that hasn’t stopped the markets surging so far this year. With such a confusing picture to consider, we look at the opportunities lying elsewhere…
15 Sep 2022 Fund Analysis
MAVT’s diversified, multi-asset portfolio and attractive yield may provide a source of ‘refined value’ in volatile markets…
09 Sep 2022 A simple route to diversification and inflation protection
MAVT is neatly positioned to deal with the world’s economic problems…
12 Aug 2022 Buying the discount
Trusts spent over £1bn on discount control in the first half of 2022…
05 Aug 2022 A trust for a rapidly changing world
Momentum Multi-Asset Value looks well-placed to handle the shocks of 2022…
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...
18 May 2022 Riding out the storm
We look at trusts with tightly governed discounts which may appeal to investors in volatile markets…
18 Mar 2022 A trust for all seasons
MAVT has performed well under duress, will it do the same with some tailwinds working in its favour?
16 Feb 2022 Could inflation give a boost to value?
Momentum Multi-Asset Value may see some upside from higher prices…
19 Jan 2022 Fund Analysis
A ready-made multi-asset portfolio with an attractive yield and a contrarian, value style…
29 Nov 2021 Refined value, resilient performance
The team behind Momentum Multi-Asset Value Trust have stuck to their guns as contrarian value investors in recent years, and the resurgence of value this year has seen this pay off…
13 Oct 2021 Consistency is key
Marking its 25th anniversary, Momentum Multi-Asset Value Trust (MAVT) continues to deliver inflation-beating returns by investing in a highly differentiated range of assets, giving investors access to continually evolving holdings that they are unlikely to find in other funds…
21 Jul 2021 Every which way but loose
We break down the AIC Flexible sector into more useful segments…
12 May 2021 The nuances of value investing
With value stocks continuing their rise, distinguishing between different ‘value’ fund offerings can be challenging. Here, we look at a unique multi-asset value strategy…
26 Apr 2021 Fund Analysis
After a strong 12 months, the managers of the recently renamed MAVT are optimistic on prospects for value...
09 Apr 2021 New look, broader resources, same proven approach
The newly renamed Momentum Multi-Asset Value Trust continues investing in quality value opportunities across different sectors in the UK, with deeper and stronger resources at its disposal…
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...
25 Feb 2021 Flying under the radar
We take a look at SIGT, a trust which is might not spring to mind for UK exposure, but offers flexible and differentiated exposure to any UK recovery…
20 Jan 2021 A trust with hidden depths
We take a look at SIGT, a multi-asset trust offering a solid income from a truly diversified portfolio…
02 Dec 2020 Results analysis: Seneca Global Income & Growth
After a strong six months, we look at SIGT’s outperformance of its benchmark and whether it has the potential to continue to do so going into 2021…
25 Nov 2020 Britannia Redux?
UK equities have been despised for almost five years and could offer extreme rebound potential…
19 Nov 2020 Thinking outside the box
Kepler Trust Intelligence looks at the unique approach to value investing taken by Seneca Global Income & Growth Trust…
06 Oct 2020 It's not about following the herd
With a small number of stocks driving global markets, we discuss how SIGT can be used to aid and diversify returns...
30 Sep 2020 Fund Analysis
Seeking to achieve total returns of CPI +6% p.a., SIGT invests on a multi-asset basis with a value approach...
04 Apr 2017 Getting active...
David Thomas, chief executive at Seneca IM, highlights the benefits of active management and why the team at Seneca Global Income & Growth have a very distinctive value style...
02 Apr 2017 Fund Analysis
A highly-diversified global multi-asset portfolio that aims to generate long-term income and capital growth via a value-driven approach...
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