Martin Currie Global Portfolio Trust
Lower rates should be beneficial for performance
9 September 2024
Martin Currie Global Portfolio Trust’s (MNP’s) performance was negatively affected in 2022 by the shift in interest rate expectations as US rates quickly moved up from 0.25% to 5.50%, in response to rising prices. Now, with inflation coming down, the consensus view is that US interest rates will soon be lowered, which should be beneficial for the valuation of long-duration growth stocks. Also, Zehrid Osmani, MNP’s manager since October 2018, has a proven track record of successful stock picking during periods when the stock market is driven by company fundamentals rather than when investor focus is on macroeconomic developments. Hence, Osmani has a high degree of confidence that there are better times ahead for MNP’s performance. MORE »
Manager ‘sticking to his knitting’; positive outlook
11 June 2024
Martin Currie Global Portfolio Trust (MNP) has been managed by Zehrid Osmani since October 2018. He runs a high-conviction, relatively concentrated portfolio of quality growth companies with pricing power. The manager believes that pricing power is particularly important as he considers that consensus earnings expectations are too bullish and sticky inflation has pushed out the prospect of lower interest rates. With investors focusing on short-term economic data points and central bank commentary, Osmani expects continued share price volatility, which over the longer term should favour MNP’s portfolio of high-quality growth businesses with strong cash flows and robust balance sheets. MORE »
High-quality equity offering in an uncertain world
30 January 2024
Martin Currie Global Portfolio Trust’s (MNP’s) manager Zehrid Osmani was correct in his assumption that investors were too conservative in 2023; global equities delivered an above-average total return led by large-cap US technology stocks. However, he believes that the consensus outlook for 2024 is too bullish given economic uncertainty and increasing geopolitical risks. The manager’s view is that with inflation remaining elevated, western central banks will not reduce interest rates until the second half of 2024, which is likely to cause disappointment and stock market volatility. With such an investment backdrop, he stresses the importance of focusing on high-quality companies with structural growth opportunities and strong balance sheets that can weather the prevailing headwinds. MORE »
Manager adhering to his high-conviction approach
10 June 2021
Martin Currie Global Portfolio Trust’s (MNP’s) manager Zehrid Osmani aims to deliver above-market returns over a rolling five-year period. He is confident in the prospects for the trust’s high-quality growth portfolio and will continue with his disciplined investment process despite value stocks leading the market during the early stages of an economic recovery. The manager believes that this approach will generate a superior outcome for shareholders over the long term. His view is that following the coronavirus pandemic, high-quality, sustainable growth companies will become even more relevant to investors. MNP affords exposure to a concentrated portfolio of listed companies that have strong environmental, social and governance (ESG) credentials and the fund’s charges are competitive. The introduction of gearing in November 2020 provides an additional lever that Osmani can utilise to potentially improve performance. MORE »
Reaping rewards from three-step process
21 January 2021
Martin Currie Global Portfolio Trust’s (MNP’s) manager Zehrid Osmani reports that his ongoing focus on long-term structural, sustainable business models was beneficial for the fund’s performance during the coronavirus-led market sell-off in Q120, with portfolio companies undertaking measures to protect their brand equity. He is encouraged by a general increase in investor awareness of environmental, social and governance (ESG) issues, an area of research that Martin Currie has focused on for several years, as he believes that ESG improvements can lead to higher total returns for shareholders. MNP’s performance has improved since the appointment of Osmani in October 2018, and its NAV is now ahead of its benchmark over the last one, three, five and 10 years. MORE »
Differentiated alpha generation
30 June 2020
Martin Currie Global Portfolio Trust’s (MNP’s) performance has improved considerably following the appointment of manager Zehrid Osmani on 1 October 2018, since when he has refined the trust’s investment process. MNP has now outperformed its benchmark over the last one, three, five and 10 years. The manager focuses on high-conviction positions and his long-term horizon helps navigate short-term market volatility. MNP has performed well despite a lack of exposure to the high-profile, large-cap US technology stocks that have led the market. Osmani has generated alpha by investing in some mid-cap stocks that are not particularly well followed, such as US company Masimo (non-invasive patient monitoring technologies), which is now the largest position in the portfolio. MORE »
Enhanced process driving outperformance
16 December 2019
Martin Currie Global Portfolio Trust (MNP) has been managed by Zehrid Osmani since 1 October 2018. He has refined the investment process, taking fundamental analysis deeper, aiming to enhance stock selection and the trust’s returns, and says that advanced risk analytics enable the portfolio to be managed in a more accurate way. The manager aims to build a high-conviction, but diversified fund of quality stocks in terms of superior top-line, profit and free cash flow growth, with high returns on capital, and room for further improvement. Whatever the market environment, Osmani is confident on MNP’s prospects versus the benchmark on a five-year view. MORE »
New manager motoring ahead
17 July 2019
Martin Currie Global Portfolio Trust’s (MNP) investment performance has improved considerably following the appointment of Zehrid Osmani as lead manager on 1 October 2018. However, he remains vigilant, continuing to seek long-term, attractive investment opportunities. The trust’s more concentrated portfolio contains the manager’s highest-conviction ideas, and is constructed without reference to the FTSE World index benchmark. Part of the in-depth fundamental research process involves focusing on three long-term megatrends: the future of technology, demographic change and resource scarcity. MNP is a member of the large AIC Global sector; while the peers follow different mandates, the trust’s pure equity, fundamental investment approach has proved successful and MNP is ranked second out of 16 funds over the last 12 months. MORE »
Established vehicle with new engine for growth
7 January 2019
Martin Currie Global Portfolio Trust (MNP) has a new lead manager, Zehrid Osmani, formerly a senior portfolio manager and head of European equities research at BlackRock. He describes the trust as ‘the same vehicle with a new engine’, and is very excited about the prospects in his new role. Having introduced new elements to Martin Currie’s investment process, the manager is confident that the trust’s performance can improve, which he hopes will become apparent over the next 24 months. Osmani recognises that the AIC Global sector is a competitive peer group, so he understands that MNP’s performance needs to stand out from the crowd. The trust has a zero discount mechanism and a progressive dividend policy, and currently offers a yield of 1.8%. MORE »
Co-manager appointed as part of succession plan
26 June 2018
Martin Currie Global Portfolio Trust (MNP) aims to generate long-term capital growth and real dividend growth from a diversified portfolio of high-quality global equities. With a view to succession planning, effective from 30 June 2018, the trust will be co-managed by Zehrid Osmani, working alongside the incumbent manager, Tom Walker. Osmani previously worked at BlackRock and is now head of Martin Currie’s global long-term unconstrained team. He has 21 years’ investment experience. Data from Morningstar show that MNP’s historical investment returns have been achieved with lower volatility compared with the average of its peers in the AIC Global sector. The trust operates a zero discount policy and has a progressive dividend strategy. Its current yield is 1.7%. Changes to MNP’s fee structure will see the annual management charge reduced from 0.5% to 0.4% of NAV with effect from FY19. MORE »
Consistent approach to global equity investing
14 December 2017
Martin Currie Global Portfolio Trust (MNP) has been managed by Tom Walker since January 2000, aiming to generate long-term capital growth. He adopts a consistent, bottom-up investment process to construct a relatively concentrated portfolio of c 50 high-quality, primarily large-cap global equities, diversified by sector and geography. The manager stresses that MNP has lower volatility of returns compared to the average of its peers in the AIC Global sector. The trust adopted a zero discount policy in 2013 and has a progressive dividend policy; its current dividend yield is 1.7%, comparing favourably to its peer group average. MORE »
Global equity exposure with low volatility
26 June 2017
Martin Currie Global Portfolio Trust (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. MORE »
Diversified global exposure with dividend growth
6 September 2016
Martin Currie Global Portfolio Trust (MNP) aims to outperform the total return of the benchmark FTSE World Index by investing in a portfolio of global, primarily large-cap equities with above-average growth potential and attractive valuations. A zero discount policy was adopted in 2013 to enhance liquidity and ensure that the share price trades close to net asset value. MNP has a progressive dividend policy; annual dividends have been increased or maintained since the trust’s inception. The current dividend yield of 2.0% is above the peer group average. MORE »
Growth focus allied with yield
10 February 2016
Martin Currie Global Portfolio Trust (MNP) invests in large-cap global equities, selected for their above-average growth potential and attractive valuation. Tom Walker has managed the fund since January 2000; long-term performance versus the benchmark has been positive. The dividend yield is above the peer-group average and since fund inception in 1999, compound dividend growth has been 7.4% a year. In 2013, a zero discount policy was adopted, supporting improved liquidity, and the shares have traded close to net asset value since then. MORE »
Selecting for quality and growth
30 June 2015
Martin Currie Global Portfolio Trust (MNP) invests in larger-cap companies selected for their quality, solid growth potential and attractive valuation. Long-term relative performance during manager Tom Walker’s 15-year tenure has been strong and risk-adjusted returns over one, three and five years have been ahead of the global sector average. The yield remains above the peer group average, with the dividend maintained or increased each year since inception. The adoption of a zero discount policy in 2013 has enhanced liquidity and led to the shares trading close to NAV. MORE »
Still finding opportunities
10 December 2014
Martin Currie Global Portfolio Trust (MNP) invests in a portfolio of larger-cap blue chip companies selected for their above-average growth potential. Recent performance has been similar to the FTSE World index benchmark in a period of market volatility and risk-adjusted returns are ahead of global trust sector averages over one and three years. Since adopting a zero discount policy in 2013, the shares have traded close to NAV. Dividends are paid quarterly and have held steady or increased each year since launch with MNP’s 2.3% yield ranking in the top quartile of global trust peers. MORE »
