17th Apr 2025 15:16
(Alliance News) - Franklin Global Trust PLC on Thursday reported a "disappointing" total return during its most recent financial year, falling significantly short of its benchmark, but looks to the future with "cautious optimism".
The Edinburgh-based investor formerly known as Martin Currie Global Portfolio Trust PLC said its net asset value per share at January 31 was 382.7 pence, up 6.2% from 360.5p the year before.
Its NAV total return for the year that ended January 31 was 7.3%, against a 23.7% return on its benchmark, the MSCI All Country World index. Its NAV total return in financial 2024 was 11.2%.
"The return that we produced for shareholders over the last financial year was disappointing," said Portfolio Manager Zehrid Osmani. "The market was unusually concentrated during the period, with the 'Magnificent 7' accounting for [around] 35% of the performance of the index."
The trust's performance was hurt by a "sizeable" underweight to the US equity market, an overweight to European equities, and an under-exposure to the 'Magnificent 7', Osmani continued.
Franklin Global Trust declared a total dividend of 4.20p per share, unchanged from the prior year.
Its share price total return was 10.1%, compared to an 11.1% return the year before.
Shares in Franklin Global Trust were down 0.3% at 309.00 pence in London on Thursday afternoon.
Looking ahead, Chair Christopher Metcalfe said: "The period since the company's year end has been volatile as markets seek to adapt to the ever changing picture on tariffs and their effect on global economies. It is difficult to predict the outcomes with any degree of certainty.
"However, the board will continue to monitor the investment performance closely. As the company evolves into Franklin Global Trust PLC, we enter a new chapter...We look forward to the next chapter with cautious optimism, trusting that the enhancements to our investment team will generate long-term value for our shareholders."
Franklin Global Trust announced its name change on Tuesday to better reflect the Franklin brand, ahead of the Martin Currie brand's retirement later in 2025.
By Emily Parsons, Alliance News reporter
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