MOMENTUM MULTI-ASSET VALUE TRUST
MONTH END JANUARY 2023
FOR PROFESSIONAL ADVISERS ONLY
INVESTMENT OBJECTIVE | INVESTMENT TEAM |
Over a typical investment cycle, the Company seeks to achieve a total return of at least CPI plus 6% per annum after costs with low volatility and aims to increase the dividends paid to Shareholders at least in line with inflation, through the application of a Multi-Asset Investment Policy.
The manager takes active allocation decisions within defined ranges. These tactical moves are made through a combination of direct investment and commitments to third party funds, both open and closed ended.
Gary Moglione | Richard Parfect | Mark Wright | Tom Delic |
Lead Oversight | Second Oversight | Portfolio Manager | Portfolio Manager |
Portfolio Manager | Portfolio Manager |
Our investment approach is team based with all portfolio managers having specific areas of research focus and access to and input from the wider Momentum Global Investments team.
FIVE YEAR HISTORICAL CUMULATIVE PERFORMANCE
90%
45%
0%
-45%
MAVT | MSCI UK All Cap | Benchmark ^ | ||
Source: MGIM, Bloomberg Finance LP. The value of the underlying funds and the income generated from them can go down as well as up, and is not guaranteed. Investors may not get back the original amount invested. The value of investments involving exposure to foreign currencies can be affected by currency exchange rate fluctuations. Past performance is not a guide to future performance.
Rebased to zero as at 31.01.2018.
CUMULATIVE | 1 | 3 | 6 | 1 | 3 | 5 |
PERFORMANCE | ||||||
month | months | months | year | years | years | |
(%) | ||||||
Trust share price (bid) | 6.4 | 13.1 | 1.1 | (7.8) | 5.4 | 14.9 |
Trust NAV | 5.2 | 11.3 | (1.6) | (6.9) | 7.3 | 16.3 |
Benchmark^ | (0.1) | 1.7 | 6.3 | 16.7 | 39.1 | 62.0 |
DISCRETE ANNUAL | 31 Jan | 31 Jan | 31 Jan | 31 Jan | 31 Jan |
PERFORMANCE | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
(%) | |||||
Trust share price (bid) | (7.8) | 16.2 | (1.7) | 10.5 | (1.4) |
Trust NAV | (6.9) | 12.8 | 2.1 | 7.6 | 0.8 |
Benchmark^ | 16.7 | 11.7 | 6.7 | 7.9 | 7.9 |
MONTHLY COMMENTARY
- Following a bruising year for investors in 2022, markets started 2023 in much better spirits. Nearly all the major asset classes enjoyed strong returns.
- We introduced Synthomer over the month, a global specialty chemicals company engaging in the development, marketing, and sale of polymer products derived from petrochemical monomers. It offers its products to different industries such as health and protection, coatings and construction and paper and packaging. Previous management made several acquisitions which has over-levered the business and has ultimately seen the dividend cut and a negotiation with lenders to relax debt covenants. A new management team is now in place, with a credible plan to reduce debt through asset disposals, along with refocusing the business. Synthomer is valued at just 0.6x price to book, versus a 10-year average of 3.2x. The gap to intrinsic value is considerable and we believe there to be significant upside from here.
- Senior released a strong FY22 trading update. The Flexonics division enjoyed strong end of year performance driven by strong demand for heavy duty trucks and the levels of maintenance and overhaul in power and energy. Profit before tax is now expected to be above the top end of consensus expectations which was £18m. Shares increased by 22% over January.
- Growing confidence that inflation in the US has peaked boosted the gold market. There was a significant shift in sentiment towards the end of 2022 and continuing into 2023 after data showed inflation cooling more quickly than expected which moderated rate-hike expectations and sent the US dollar lower. The Ninety One Global Gold Fund returned 8% over the month and was a primary contributor to returns.
Source: MGIM, Bloomberg Finance LP
TRUST CODES & DETAILS
SEDOL | 0876999 |
ISIN | GB0008769993 |
CITICODE | IS61 |
Bloomberg ticker | MAVT LN |
Investment Manager | Momentum Global Investment Management Ltd (MGIM) |
Financial Times | Investment Companies |
AIC sector | Flexible Investment |
ISA eligible | Yes, the Trust is fully ISA eligible |
NAV with income | 165.68p |
Share price (mid) | 164.00p |
DIVIDEND PAYMENTS | |||||
Year | 2019 | 2020 | 2021 | 2022 | 2023 |
March | 1.64p | 1.68p | 1.68p | 1.68p | 1.80p* |
June | 1.68p | 1.68p | 1.68p | 2.16p | 1.80p* |
September | 1.68p | 1.68p | 1.68p | 1.80p | |
December | 1.68p | 1.68p | 1.68p | 1.80p |
Source: Company Secretary/RNS
*Dividend note: As announced in the RNS of 16.11.2022, the Company will continue at least to maintain the 1.80p per share quarterly dividend rate for at least the financial year to 30 April 2023, barring unforeseen circumstances.
Cumulative & discrete figures are sourced from MGIM, Bloomberg Finance LP, Trading Economics & Morningstar. Share prices calculated on a total return basis with net dividends reinvested. NAV returns based on NAVs including income and with debt valued at par. Returns do not include current year revenue. ^Benchmark: CPI plus 6%. For the periods ending 31.01.2023, a forecast CPI is used. The information on this factsheet is as at 31.01.2023 unless otherwise stated. MGIM defines a typical investment cycle as one which spans 5-10 years, and in which returns from various asset classes are generally in line with their very long term averages. Low volatility is defined as being lower volatility than that which would be typical of a pure equity portfolio.
ASSET ALLOCATION | INCOME GENERATION |
UK equity | 36.8% |
Overseas equity | 21.9% |
Credit | 7.4% |
Specialist assets | 29.1% |
Defensive assets* | 3.9% |
Cash & equivalents | 0.9% |
UK equity | 26.8% |
Overseas equity | 20.2% |
Credit | 9.7% |
Specialist assets | 42.6% |
Defensive assets* | 0.0% |
Cash & equivalents | 0.7% |
As at 31.01.2023, allocations subject to change. Source: MGIM
*Defensive assets have reduced/negative correlation to equity markets to provide a more defensive element during times of stress Defensive assets consists of a variety of investments such as gold**, government bonds, short ETFs, alternative/uncorrelated strategies and managed futures strategies. **Exposure to physical gold is achieved through investments in exchange traded certificates (ETC) which aim to provide the performance of gold, as measured by the LBMA Gold Price (PM), which is a recognised benchmark for gold. A Gold ETC is a certificate which is secured by gold bullion, held within the vaults of a nominated custodian.
TOP FIVE HOLDINGS BY ASSET CLASS | TRUST FACTS | ||||||
UK EQUITIES | KEY FACTS | ||||||
1. | Babcock International Group | 2.4% | Current dividend yield¹ | 4.10% | |||
2. | Accrol Group Holdings | 2.2% | Total net assets² | £47.04m | |||
3. | Conduit Holdings | 2.1% | % Net gearing ratio³ | 11.86% | |||
4. | OSB Group | 2.0% | Year end | 30 April | |||
5. | Senior | 2.0% | Interim | October | |||
Premium (discount) | -1.01% | ||||||
OVERSEAS EQUITIES | Ongoing charges⁴ | 1.66% per account | |||||
1. | Morant Wright Fuji Yield | 4.3% | |||||
2. | CIM Dividend Income | 3.8% | |||||
PLATFORM AVAILABILITY | |||||||
3. | JP Morgan European Investment Trust | 2.6% | |||||
4. | Prusik Asian Equity Income | 2.6% | |||||
5. | Samarang Asian Prosperity | 2.6% | |||||
CREDIT | |||||||
1. | Absalon Emerging Markets Corporate Debt | 2.7% | |||||
2. | TwentyFour Select Monthly Income | 2.4% | |||||
3. | Royal London Short Duration Global High Yield | 1.3% | |||||
4. | Royal London Sterling Extra Yield Bond | 1.0% | |||||
- | - | ||||||
SPECIALIST ASSETS
1. | Fair Oaks Income | 2.5% |
2. | Doric Nimrod Air Two | 2.3% |
3. | Ediston Property Investment Company | 2.3% |
4. | Syncona | 2.1% |
5. | RM Infrastructure Income | 1.8% |
As at 31.01.2023. Source: MGIM
TRUST RATINGS
CONTACT US
EMMA CLIFT | STEVE HUNTER | RONA GRANT |
Head of Distribution Services | Head of Business Development | Company Secretary Juniper Partners Limited |
D 020 7618 1806 | T 0151 906 2481 | T 0131 378 0500 |
E distributionservices@momentum.co.uk | E steve.hunter@momentum.co.uk | E rgrant@junipartners.com |
IMPORTANT INFORMATION
¹Current yield: the yield calculation is based on the latest quarterly dividend, annualised, compared against the month end share price. ²Excl. current period revenue and debt. ³Gearing is the
proportion of the Company's debt to its total net assets. ⁴Based on expenses as at 30.04.2022. Annual Investment Management Fee. Based on Market Cap (from 01.07.2014): below £50m = 0.90%.
above £50m = 0.65%. Source: Juniper Partners Limited, MGIM, Bloomberg Finance LP.
The views of Momentum Global Investment Management Limited (MGIM) do not constitute investment advice. Whilst MGIM has used all reasonable efforts to ensure the accuracy of the information contained in this communication, we cannot guarantee the reliability, completeness or accuracy of the content. Investment in the Trust may not be suitable for all investors. This document is for information only and does not provide you with all the facts that you need to make an informed investment decision. Investors. Before investing you should refer to the Key Information Document (KID) for details of the principle risks and information on the Trust's fees and expenses. Net Asset Value (NAV) performance may not be linked to share price performance, and shareholders could realise returns that are lower or higher in performance. The annual investment management charge and other charges are deducted from income and capital. The KID, Investor Disclosure Document and latest Annual Report are available at momentum.co.uk. MGIM is the Investment Manager of the Trust (0151 906 2450). MGIM is registered in England and Wales (Company Registration No. 3733094). The registered address is The Rex Building, 62 Queen Street, London, EC4R 1EB. MGIM is authorised and regulated by the Financial Conduct Authority in the United Kingdom (232357).
Past performance is no guarantee of future results. All calls are recorded. Your capital is at risk.
Ratings: Profile published 13.12.2022 by Distribution Technology based on data and information as at 30.09.2022. FE Crown Fund Ratings as of 28.07.2022, do not constitute investment advice offered by FE and should not be used as the sole basis for making any investment decision.
Momentum Global Investment Management Ltd The Rex Building, 62 Queen Street, London EC4R 1EB momentum.co.uk
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Momentum Multi-Asset Value Trust plc published this content on 31 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2023 13:18:09 UTC.