Fund Profile

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Martin Currie Global Portfolio. 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 Trust (MNP) aims to offer investors a portfolio of some of the most exciting, high-growth companies across the globe.

Zehrid Osmani has managed the portfolio since 2018, searching for undervalued, high-quality companies that can offer investors consistent returns. He is unconstrained in his approach and favours a highly concentrated portfolio. Currently MNP is made up of just 30 holdings, with the top ten making up more than 40% of the total NAV. The team at MNP go into great detail throughout the investment process, which is built around a proprietary toolkit, narrowing the universe of around 3000 companies down to 500. The portfolio has the second highest exposure to growth companies of any in the sector (73.4%), most of which are large cap companies (75.7%).

Since taking over the portfolio, Zehrid has been able to generate returns in excess of the peer group and benchmark, as we discuss in the Performance section. Under his management the trust has achieved NAV total returns of 26.1%; which is considerably more than the previous benchmark FTSE World (13.2%) and almost quadruple the AIC peer group’s returns of 7.1%. Performance in 2020 has been strong, and the trust protected capital well through the February and March downturn, before rebounding in April and May.

Typically the trust trades at around par, with the board enforcing a zero-discount policy. Currently the discount is around 1.8%, in comparison to a sector average discount of 4.4%.

[N.B. As of February 2020 performance has been measured relative to the MSCI ACWI, which includes emerging markets, unlike the FTSE World Index.]

Analyst's View

The manager had an extensive track record of outperformance over his career before Martin Currie; running multiple unconstrained equity funds at BlackRock, which generated an alpha of >5% p.a. for the five years that he ran them.

Zehrid brings this unconstrained approach to MNP also, having built a highly concentrated portfolio of just 30 companies. The trust’s active share of over 90% differentiates it from its peers, as we discuss in the Portfolio section. The trust is unique in having high levels of exposure to growth companies, while also having most of the portfolio in large caps. This large cap growth exposure does not come from the usual ‘FAANG’ stocks.

It is worth highlighting the detailed approach that the team take during the stock selection process. Investments are split geographically, based on revenue exposures, sector, who the consumer is, and by theme. This ensures Zehrid has a strong idea of where risks might be, and whether the trust is overexposed to a particular outcome in the future. In addition, all companies in the portfolio undergo stress testing. During our recent call with Zehrid, he explained that the entire portfolio was stress tested based on a dark sky scenario of a repeat of the GFC over the past year. We think – although the team never thought this outcome would actually transpire – this detailed research into how companies react to different environments has been vital in the trust’s outperformance this year.

bull bear
Manager with a strong track record of generating high levels of alpha Volatility often comes with concentrated portfolios
Highly active and concentrated portfolio offers outperformance potential The trust is growing but still relatively small in comparison to others in the sector
Zero discount volatility, while having the structural advantages of an investment trust As a growth trust, it offers limited income - though quarterly dividend
Continue to Portfolio

Fund History

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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