CONTRIBUTORS
Nicholas Todd
Analyst, Kepler Partners
Kepler View
We believe MNP’s (Martin Currie Global Portfolio Trust's) significant periods of strong performance have highlighted the alpha-generating potential that Zehrid’s high-conviction, quality growth-focussed strategy can provide. We believe the strategy is likely to suit longer-term investors looking to gain exposure to a selection of core secular growth themes that seem likely to drive global equities for many years to come. That said, a strong stomach may be required for periods of volatility and underperformance during value-driven market environments.
We believe MNP’s (Martin Currie Global Portfolio Trust's) significant periods of strong performance have highlighted the alpha-generating potential that Zehrid’s high-conviction, quality growth-focused strategy can provide.
The team has a meticulous approach to fundamental equity research and the systematic integration of ESG. In our view, the established, market-leading businesses within the Portfolio, combined with their exposure to key thematic growth drivers, should be better positioned in a lower growth, tighter macroeconomic environment.
As we move closer to the end of the interest rate-hiking cycle, we think this could start to provide support to quality-growth stocks. At the time of writing, the Discount of 2% seems attractive to us, too, as the zero-discount policy has tended to keep the shares trading closer to NAV (Net Asset Value). While substantial buybacks have not been enough to keep the shares trading at par this year, we think this is likely a temporary phenomenon thanks to the extremely high levels of risk aversion in markets.
This research note has been commissioned by Martin Currie Global Portfolio Trust from Kepler Partners. The research note does not constitute independent research for the purpose of legal and regulatory requirements and is therefore not subject to the regulatory protections afforded to independent research. In particular, the research note is not subject to any prohibition on dealing and both Kepler Partners and Martin Currie/Franklin Templeton, and their respective staff, may have dealt in the securities discussed in the research note.
Important information
This information is issued and approved by Franklin Templeton Investment Management Limited (FTIML). It does not constitute investment advice.
The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were or will prove to be profitable. These opinions are not intended to be a forecast of future events, research, a guarantee of future results or investment advice.
Past performance is not a guide to future returns. The return may increase or decrease as a result of fluctuations in the markets, in currency and/or in the portfolio.
Market and currency movements may cause the capital value of shares, and the income from them, to fall as well as rise and you may get back less than you invested.
The analysis of Environmental, Social and Governance (ESG) factors form an important part of the investment process and helps inform investment decisions. The strategy does not necessarily target particular sustainability outcomes.
The opinions contained in this document are those of the named manager(s). They may not necessarily represent the views of other Martin Currie managers, strategies or funds.
Shares in investment trusts are traded on a stock market and the share price will fluctuate in accordance with supply and demand and may not reflect the value of underlying net asset value of the shares. The majority of charges will be deducted from the capital of the company. This will constrain capital growth of the company in order to maintain the income streams.