24th Mar 2016 16:04
LONDON (Alliance News) - Martin Currie Global Portfolio Trust PLC Thursday posted a rise in its net asset value total return in its financial year, beating its benchmark, which it said was due to "good stock selection".
The trust said its net asset value total return was 0.9% in the twelve months ended January 31, beating the 0.1% fall reported by the FTSE World global equity benchmark.
This was not as strong, however, as the 16% rise it reported the year before.
Martin Currie Global said it has outperformed the market thanks to Portfolio Manager Tom Walker's stock selection and is positioned to continue this performance.
However, Walker noted that the macro economic market has been tough over the year.
"A year ago, on balance, investors were most worried about the extended valuation of equities. Today, their greatest concern is probably the lack of global economic growth. Despite the efforts of so many central banks to stimulate it, the weak oil price and collapsing sovereign bond yields confirm what we read in the news everyday - growth in the underlying economies is lacking. For many companies, cash flow has been strong, but this has been utilised more in share buy backs, dividends and merger and acquisitions than in growth initiatives," Walker said.
"While growth looks really challenged when dealing in the generalities of stock market averages or gross domestic , there are clearly individual companies and specific niches within economies that are still growing well. There are also companies enjoying modest growth at valuations that remain attractive," Walker added.
"We expect the year ahead to be one of low growth, low inflation and low interest rates. It will be a year that challenges advances in global equity markets. However, we believe this is also an environment that will throw up opportunities and where, by choosing companies wisely, reasonable returns for shareholders can be achieved," said Walker.
The board is considering "the introduction of long term gearing when conditions are right", Chairman Niel Gaskell said in a statement, adding that "although costs will increase, this will be offset by additional income and, over time, an improved capital growth".
Shares in Martin Currie Global were up 0.4% at 179.88 pence on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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