17th Jun 2014 12:57
LONDON (Alliance News) - Martin Currie Global Portfolio Trust PLC Tuesday said its portfolio outperformed its benchmark between the start of February and the end of April.
In a statement, the trust said its net asset value rose by 4.4% in sterling terms, while the FTSE World index was up 3.7%.
"In sector terms, stock selection for the company was strongest in materials, but it was a weak period overall for financials. In regional terms, North America provided the biggest relative returns; Israel, by contrast, was the weakest," the trust's manager, Tom Walker, said in a statement.
"At the level of individual stocks, the biggest contributor to performance was LyondellBasell after its refining business returned to strong profitability following a poor 2013. Another good performer was BG Group PLC, benefiting from a clear strategy to divest assets and accelerate value realisations. Financial firm Prudential also did well," Walker said.
The largest detractor from returns relative to the benchmark was Mitsubishi UFJ Financial Group, according to Walker.
"While the stock was notably down at the beginning of the year, the market's consensus view of the firm's earnings power means it continues to get upgraded at a high rate. Financial conglomerate Orix was another notable negative; its shares have suffered from profit-taking after doubling in value last year, but we believe the company is still a good investment. IT stock eBay also fared badly during the quarter," Walker said.
During the period, the trust switched out of AT&T into Verizon, and also added US-based contact lens manufacturer Cooper Companies and the Japanese manufacturer of construction machinery Komatsu. The additions were funded by the sale of the trust's position in US retailer Walmart and Japanese trading company Mitsui & Co. The trust also bought into Chinese oil producer CNOOC.
Martin Currie Global Portfolio Trust shares were Tuesday quoted at 166.69 pence, up 0.3%.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Martin Currie Global Portfolio TrustBG..L