Miton Worldwide Growth, managed by Nick greenwood (pictured), has announced its annual results for the year ended 30 April 2015. During the year, the trust’s NAV per share grew by 8.5% to 181.63p whilst its share price grew by 8.9% beating the FTSE All-Share Index, which rose 7.5% during the same period. The discount narrowed marginally but continues to hover around the 10% level. The Board believes that the trust would appeal to a wider group of investors if the trust was larger and its shares more liquid. Accordingly they say they are focused on improving the rating of the shares to a position where the trust can grow. Shareholders will have the opportunity to vote on the continuation of the company at the forthcoming AGM. However, reflecting the board’s desire to increase the trust’s appeal, they are also putting forward proposals, which are contingent on the continuation vote being passed, to introduce provisions providing shareholders with opportunities to elect, in 2018 and then at three year intervals thereafter, to realise all or part of their shareholding.
Changes in exchange rates heavily influenced returns during the period with the strength of the US Dollar boosting NAV in absolute terms although the manager the manager says they now consider US equities to be rather fully valued. 7 of last year’s largest 20 positions have exited the portfolio largely relating to a decision to reduce exposure to Europe, private equity and Chinese property.
New entrants have been drawn from an array of sectors and have included: Atlantis Japan Growth Fund, Better Capital, Boussard & Gavaudan, Monks Investment Trust and Pacific Horizon Investment Trust.
Better Capital, a turnaround specialist has endured a tough period as a number of its investments have turned sour, including Readers Digest, Fairline Boats and Spicers Paper. However, the manager says that Better Capital’s strategy has always been high risk and the potential rewards are also high. They believe that Better Capital’s stated NAV remains significantly below their estimates of Gardners Aerospace’s likely disposal value.
The manager also retains the view that corporate change in Japan will allow a greater proportion of profits to find their way to shareholders and that, as a consequence, Japanese equities now offer greater scope for earnings growth than most developed markets. Atlantis Japan was added partly to diversify specific risks carried within the trust’s Japanese exposure and partly on opportunistic grounds, as the discount had widened during one of the company’s half-yearly redemption periods.
A stake in Monks Investment Trust was acquired just before Christmas and in March, it was announced that the day-to-day management of Monks would pass to Baillie Gifford’s Global Alpha Team (Miton’s manager had expected that a change in management arrangements would lead to a rerating).
Towards the end of the year the trust initiated a position in Boussard & Gavaudan, a fund of hedge funds. This sector has a chequered history but the manager believes that Investors adopting a “long short” strategy will be well placed relative to long only funds when the bull market finally runs out of steam.
Miton Worldwide Growth – modest outperformance of FTSE All-Share : MWGT