Martin Currie Global Portfolio Trust (LON:MNP) aims to generate long-term capital growth from a portfolio of high-quality, primarily large-cap global equities.
There has been continuity of leadership and process; Tom Walker, assisted by Martin Currie’s large team of experienced investment professionals, has managed MNP since January 2000. The trust has performed broadly in line with its blended benchmark over the last 10 years.
However, its volatility of investment returns is lower than the average of its peer group, the AIC Global sector, which currently comprises 24 closed-end funds with a variety of mandates. Following the adoption of a zero discount policy in 2013, MNP’s shares trade close to NAV. The trust has a progressive dividend policy; its current yield of 1.8% compares favourably with the average of its peers.
Investment strategy: Bottom-up stock selection
Tom Walker and his team select stocks on a bottom-up basis, seeking quality companies with growth potential that are trading at a discount to their perceived value. Potential investments undergo rigorous fundamental analysis, which includes a five-year earnings forecast and valuation target.
The resulting relatively concentrated portfolio of c 50 holdings is diversified by sector and geography, with stock selection unconstrained by the benchmark. Gearing of up to 20% of net assets is permitted, but has not been utilised since 2008.
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