Disclosure – Non-Independent Marketing Communication
This is a non-independent marketing communication commissioned by BMO Managed Portfolio. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.
BMO Managed Portfolio Trust is a UK investment trust which has two share classes with discrete investment portfolios invested in closed-end investment companies. These are selected by Peter Hewitt, a highly experienced manager who has spent many years researching the closed-ended investment company sector. The Growth shares are focused on achieving capital growth, while the Income shares are focused on providing an income yield above that of the FTSE All-Share Index, along with some capital growth.
Both portfolios invest in a diversified range of over 25 investment companies, looking to ensure the underlying assets cover a range of geographic areas, investment management groups and sectors. They have been managed by Peter since launch in 2008; having managed the assets (which were previously held in F&C’s managed portfolio service) for over a decade, this gives him 20-plus years experience picking investment companies for these portfolios.
Peter is seeking to invest in investment companies which have managers with identifiable long-term performance records and whose managers’ interests are as fully as possible aligned with those of the underlying investors. A total-return mindset is adopted with regard to returns, and some downside protection in more adverse market conditions is desired whilst seeking to ensure the portfolios are exposed to long-term secular growth trends.
Since launch, the Growth portfolio and Income portfolio have seen significant outperformance against the benchmark FTSE All-Share index, with NAV total returns of 112% and 124% respectively, against a return from the benchmark of 91% (as of 31/05/2019, the end of the company’s most recent financial year). The Growth portfolio has outperformed the benchmark in nine of the 11 financial years since launch in 2008, whilst the Income portfolio has outperformed in eight of these periods. Currently, the Growth shares trade on a slight premium to NAV of 2.3%, whilst the Income shares are on a discount of c. 1.3%.
The Income shares dividend has increased each year for the last eight years, with the dividend having grown by 35% in total since launch. Presently the investments within the Income portfolio are yielding c. 4.4%. Any net income generated by the Growth portfolio is transferred to the Income portfolio, which concurrently returns an equivalent level of capital. This helps to benefit the income available for the Income shares and the capital growth of the Growth shares.
A share conversion facility is provided, whereby investors can annually switch between the Income shares and Growth shares (subject to minimum and maximum conversion thresholds) without incurring capital gains tax.
This report has been issued by Kepler Partners LLP. The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research.
Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.
Kepler Partners is not authorised to market products or make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment.
The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. In particular, this website is exclusively for non-US Persons. Persons who access this information are required to inform themselves and to comply with any such restrictions.
The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice.
This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only.
Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm’s internal rules. A copy of the firm’s Conflict of Interest policy is available on request.
PLEASE SEE ALSO OUR TERMS AND CONDITIONS
Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 480590), registered in England and Wales at 9/10 Savile Row, London W1S 3PF with registered number OC334771.
Brazil's currency often upsets assumed norms, and current signs offer the possibility another twist is coming...
The natural resources sector is changing: investors may want to rethink their long-held views..
Investment trusts are particularly suited to multi-asset strategies. Our research identifies the leaders in this increasingly popular field...
The US market continues to confound many skeptics. It has pushed ahead of other global stock markets, even as valuations of US companies have appeared high compared to their peers. As the global ec...