Martin Currie Asia Unconstrained Trust
Termination of coverage
3 October 2019
Edison Investment Research is terminating coverage on Freegold Ventures, OnTheMarket, Martin Currie Asia Unconstrained Trust and Lighthouse Group. Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website. MORE »
Deep discount and attractive yield
9 November 2018
Martin Currie Asia Unconstrained Trust (MCP) aims to deliver growth in line with nominal Asia ex-Japan GDP on a rolling three-year basis. It follows a detailed, bottom-up approach to investing in a concentrated portfolio of 20–30 of Asia’s highest-quality and most sustainable businesses, unconstrained by a benchmark. Although market conditions have become more challenging for Asian equities, MCP’s manager Andrew Graham believes the portfolio’s high-quality companies are poised to do well in this environment. He also notes the trust’s performance is less volatile than the MSCI AC Asia ex-Japan index. A dividend policy change in 2017 allowing payment from capital reserves, in addition to revenue income, has materially increased MCP’s yield. Unlike one-off special dividends, it is the board’s intention for this higher overall payout to endure. At 4.9%, MCP’s dividend yield is one of the highest among peers. MORE »
Capital growth with attractive yield
21 June 2018
Martin Currie Asia Unconstrained Trust (MCP) aims to deliver returns in line with nominal Asia ex-Japan GDP growth on a rolling three-year basis. It aims to achieve this through a rigorous ‘forensic’ analysis, to build a relatively concentrated portfolio of c 30 high-conviction stocks. This strategy was adopted in August 2014 and has since delivered annualised total returns of 11.6% to end-May 2018, with lower volatility relative to the MSCI AC Asia ex-Japan index. Following a change in dividend policy in April 2017, MCP’s 4.1% yield is one of the highest among peers, although its discount to cum-income NAV is one of the widest, suggesting scope to narrow over time. MORE »
Scope for narrower discount
23 November 2017
Martin Currie Asia Unconstrained Trust (MCP) 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. MORE »
Proposed increase in the dividend
3 May 2017
Martin Currie Asia Unconstrained Trust (MCP) adopted Martin Currie’s Asia Long-Term Unconstrained (ALTU) strategy in July 2014, aiming to generate returns in line with Asia-Pacific ex-Japan GDP growth. The trust has consistently traded at a wider discount than its peers, but the differential has recently narrowed following the board’s proposal on 4 April 2017 to increase the dividend meaningfully. Based on MCP’s end-FY17 ex-income NAV, the dividend yield would more than double, lifting the yield to c 4.5%. MCP has outperformed its Asian GDP growth benchmark since adopting the ALTU strategy and over shorter time periods, with particularly strong relative performance over the last 12 months, helped by sterling weakness. MORE »
Unconstrained investment in Asian equities
5 October 2016
Martin Currie Asia Unconstrained Trust (MCP) was launched in 1985 and in July 2014 adopted Martin Currie’s Asia Long-Term Unconstrained (ALTU) strategy, aiming to generate returns in line with Asia-Pacific ex-Japan GDP growth, which generally has not been fully reflected in the region’s equity market returns. Since ALTU’s inception in 2008, it has demonstrated lower volatility than the market, capturing most of the upside in rising markets, while outperforming in falling markets. MCP has a wider discount than the peer group, which provides scope for it to narrow; its current dividend yield of 2.4% is attractive versus non income-mandated peers. MORE »
Disciplined investment in Asian growth
17 February 2016
Martin Currie Asia Unconstrained Trust (MCP) does not have a traditional Asia ex-Japan benchmark, but aims to achieve returns commensurate with GDP growth in the region. The manager’s Asia Long-Term Unconstrained (ALTU) strategy was launched in July 2008 and adopted by MCP in July 2014. Since inception, the strategy has tended to capture most of the upside in rising markets, while outperforming in falling markets. The portfolio is focused, with 20-30 holdings that have all undergone a rigorous selection process, including an in-depth forensic accounting report and a corporate governance review. MORE »
Unconstrained long-term Asian growth strategy
7 May 2015
Martin Currie Pacific Trust (MCP) is an actively-managed fund focused on Asia ex-Japan, differentiated by its aim of achieving returns commensurate with the region’s GDP growth. Launched by Martin Currie in 2008 and adopted by MCP in July 2014, the Asia Long-Term Unconstrained (ALTU) strategy has demonstrated relatively low volatility compared with the market and has tended to capture the majority of market upside, while outperforming in falling markets. MCP’s 2.4% dividend yield is one of the highest among peers and there is scope for the discount to narrow further. MORE »
Unconstrained approach to Asian growth
14 October 2014
Martin Currie Pacific Trust (MCP) has undergone a transformation from a relative return, pan-Asia-Pacific strategy to an unconstrained mandate focused on providing long-term returns commensurate with nominal GDP growth in Asia (ex-Japan). It is the only UK retail fund offering exposure to Martin Currie’s Asia Long-Term Unconstrained (ALTU) investment process, which seeks to identify the region’s 20-30 most sustainable businesses using an in-depth forensic accounting approach. If the ALTU strategy can maintain its strong performance record, then MCP investors also stand to benefit from a narrowing of the discount, which is probably still influenced by the trust’s lacklustre performance under its previous approach. MORE »
