Martin Currie Asia Unconstrained Trust: Scope For Narrower Discount
Edison | Nov 23, 2017 04:25AM ET
Martin Currie Asia Unconstrained Trust PLC (LON:MACP) aims to generate returns at least in-line with Asia ex-Japan nominal GDP growth. It follows a bottom-up approach to stock-picking and uses detailed ‘forensic accounting’ assessments to build a high-conviction portfolio of 20 to 30 stocks, with a long-term view. The trust has persistently traded at a deep discount, but there is scope for this to narrow following a recent change in the dividend policy, which has lifted its yield to 4.0%, while maintaining the investment strategy. MCP’s yield now compares favourably against peers and could attract new interest from income focused investors.
Investment strategy: Forensic, bottom-up approach
Lead manager, Andrew Graham and his team seek to identify 20 to 30 high-conviction stocks, across a broad range of sectors, which exhibit financial strength, sound management and good corporate governance. Stocks are purchased with a ‘buy and hold’ view, which is reflected in MCP’s low turnover, typically 12-13% pa. To support this high-conviction approach, the investment process involves rigorous bottom-up analysis by a team of experienced specialists, involving ‘forensic accounting’ assessments.
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Martin Currie Asia Unconstrained Trust Scope For Narrower Discount
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