Interim Management Statement

RNS Number : 8299J

Martin Currie Global Portfolio Tst

17 June 2014

 



Martin Currie Global Portfolio Trust plc

Interim Management Statement

1 February 2014 - 30 April 2014

Manager's commentary

World equity markets have been rather directionless recently, as both economic data and corporate earnings have pulled investors, first one way, and then the other. Taking a higher-level view beyond this short-term ebb and flow, it is clear that markets have done well for a number of years - considerably better than earnings - and that valuations are now looking more stretched.

The portfolio outperformed the benchmark. The NAV rose 4.4% in sterling terms while the FTSE World index was up 3.7% over the period. 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.

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, benefiting from a clear strategy to divest assets and accelerate value realisations. Financial firm Prudential also did well.

On the other side, the largest detractor from relative returns was Mitsubishi UFJ Financial Group. 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.

During the period, we switched out of AT&T into Verizon, which we believe is offering better value. We also added the US-based contact lens manufacturer Cooper Companies and the Japanese manufacturer of construction machinery Komatsu. The new purchases were funded by the sale of US retailer Walmart and Japanese trading company Mitsui & Co. We also bought Chinese oil producer CNOOC.

Tom Walker

Profile as at 30 April 2014

Objective: To achieve long-term capital growth in excess of the capital return of the FTSE World index.

Benchmark:  FTSE World index

Sector:  Global

Launch:  1999

Portfolio

Region allocation

                                                               30Apr

North America                                 50.5%

Europe                                                 29.2%

Asia Pacific ex Japan                      10.2%

Japan                                                    5.8%

Emerging markets                           2.2%

Israel                                                    1.3%

Cash                                                     0.8%

Top 10 Holdings (31.0% of total portfolio)

LyondellBasell                                  3.7%

JP Morgan Chase                             3.6%

Roche                                                   3.6%       

Prudential                                          3.2%

Apple                                                   3.0%

United Technologies                       3.0%

Abbvie                                                2.9%

BG Group                                           2.9%

Philip Morris International         2.6%

Schneider Electric                            2.5%

Number of holdings                       59

Number of countries                      17

Key facts

Total net assets                                £169.0m

Share price (p)                                  162.5

Net asset value per share (p)       163.5

Discount (premium)                       0.6%

Historic net yield                             2.5%

Source for historic yield: Martin Currie as at 30 April 2014. The historic yield reflects dividends declared for the previous financial year as a percentage of the mid-market share price, as at the date shown. Investors may be subject to tax on their dividends.

Performance

Discrete performance over 12 months to 30 April 

                                                               2014                      2013             2012             2011                2010

Share price                                         9.4%                      23.9%          2.9%             7.6%                34.6%

NAV                                                     6.7%                      18.5%          1.1%             11.5%             38.5%

Benchmark                                        6.8%                      21.4%          (2.5%)          13.7%             36.6%

Cumulative performance over periods to 30 April 2014

                                One month  Three months   Six months   One year    Three years     Five years

Share price         (0.7%)             4.7%                      (1.8%)             9.4%             39.5%                 102.1%

NAV                     0.1%                4.4%                      (0.5%)             6.7%             27.8%                 97.4%

Benchmark         (0.2%)             3.7%                      0.8%                6.8%             26.5%                 96.4%

Source: Martin Currie and Morningstar. Bid to bid basis with net income reinvested over the periods shown in sterling terms. These figures do not include the costs of buying and selling shares in an investment trust. If these were included, performance figures would be reduced.

Prior to 31 May 2011 the Company's benchmark was the FTSE All-Share index and the FTSE World index thereafter.

Past performance is not a guide to future returns.

Capital structure

 Ordinary shares:  103,377,171

Board of Directors

Neil Gaskell (chairman)  

Gillian Nott

David Kidd 

Gillian Watson

Mike Balfour

Key information

Year end:  31 January

Annual general meeting:  June

Interim dividends paid:  October, January, April, July

Investment management fee as at 31 January 2014†:  0.50%

Ongoing charge - 31 January 2014*:  0.75%

TIDM code:  MNP

Reuters code:  MNP.L

†Percentage of net assets.

*Martin Currie is paid an investment management fee of 0.5% of the NAV of the Company per annum, calculated quarterly.

Material events and transactions

During the period, the Company bought back 916,000 shares to be held in treasury.

The Company paid a fourth interim dividend of 1.3 pence per share on 25 April 2014 to shareholders on the register at close of business on 4 April 2014.

Gill Nott will retire from the Board at the annual general meeting on 18 June 2014. The number of directors on the Board will reduce to four at that time.

Website

The Trust has its own website at www.martincurrieglobal.com. There you will find further details about the Trust, information on Martin Currie, daily share prices (and associated risks), and you can access regular webcasts by the manager.

Net asset value and dividend history

As at                     Share              NAV                     Discount/                Dividend

31 January          price               per share             (premium)            per share

2000                      89.5p              110.0p                   18.6%                       1.42p

2001                      101.0p            115.7p                   12.7%                       1.47p

2002                      80.5p              89.9p                     10.5%                       1.50p

2003                      57.8p              65.1p                     11.2%                       1.55p

2004                      79.0p              83.0p                     4.8%                         1.87p

2005                      85.0p              91.5p                     7.1%                         1.99p*

2006                      109.0p            116.9p                   6.8%                         2.20p

2007                      117.3p            127.5p                   8.0%                         2.40p

2008                      124.3p            134.8p                   7.8%                         2.60p

2009                      89.8p              93.1p                     3.5%                         3.50p

2010                      113.5p            122.2p                   7.1%                         3.50p

2011                      125.0p            135.5p                   7.7%                         3.50p

2012                      129.0p            139.2p                   7.3%                         3.70p

2013                      147.4p            152.6p                   3.4%                         3.90p

2014                      156.5p            157.4p                   0.6%                         4.00p

*Plus special dividend of 1.61p

Past performance is not a guide to future returns.

 

END

 

 

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