24th Sep 2019 13:15
(Alliance News) - Martin Currie Global Portfolio Trust PLC said Tuesday it outperformed its benchmark in the first half following the appointment of a new investment manager.
At July 31, the trust's NAV per share stood at 299.00 pence compared to 245.50p at January 31, representing a 22% jump. Compared to the same point a year ago, Martin Currie Global's NAV per share is 15% higher.
The trust's net assets increased 22% to GBP250.5 million from GBP205.60 million six months earlier.
Martin Currie Global's NAV total return in the six months to the end of July was 22.7%, ahead of its benchmark - the FTSE World Index - which only added 16.7% in the same period.
The trust's dividend interim dividend was unchanged at 1.80p.
"The company has enjoyed a good performance in the year, since the appointment of Zehrid Osmani as portfolio manager, which places it second in the AIC Global rankings. This has resulted in a buoyant share price giving a share price total return of 29% over the half year with a modest and welcome, net issuance of treasury shares over the period," said Chair Neil Gaskell.
Gaskell said equity markets "staged a recovery" in the period from a low point in December, despite ongoing concerns about trade disputes and slowing global economic growth.
Osmani added: "The six months to the end of July 2019 have been strong for both the market and the company, with global equities. North America was the strongest performing region in the world whilst emerging markets - perhaps the biggest potential victims should trade wars intensify - lagged, with Europe in between. By sector, technology, consumer and utilities fared best, while financials, materials and energy suffered."
In terms of portfolio performance, Osmani said: "Sportswear giant Adidas was the top performer, buoyed by relief that first-quarter sales were in-line with expectations after an unforseen supply constraint issue was previously flagged, while shares in payment platform Visa and coffee chain, Starbucks also performed well.
"Cosmetic dentistry specialist Align was the largest drag on performance, due to weak guidance for revenue growth for the year in China and the US which harmed sentiment. We still believe that there is a long runway of growth in cosmetic dentistry and that the company is years ahead of competition in terms of product offering."
Looking forward, Gaskell believes the trust's portfolio is "well positioned" for an outlook of "slowing global growth and continuing volatility".
He said: "The macro economic outlook is particularly uncertain at the moment and not helped by trade wars, the conflicts in the Middle East and political tensions elsewhere, not least in the UK and Europe. Against this background, the manager's focus on high conviction stocks with strong financials and growth prospects provides the company with a liquid and high quality portfolio."
Shares in Martin Currie Global were 0.2% higher in London on Tuesday at 289.45p each.
By Paul McGowan; [email protected]
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Martin Currie Global Portfolio Trust