Martin Currie Global Portfolio generated a 2.2% return on net assets over the six month period ended 31 July 2015 – a bit better than its benchmark, the FTSE World Index, which returned 1.9%. the discount widened slightly however and the return to shareholders was 1.2%. The quarterly dividends total 1.8p for the first half – same as last year.
The manager says that, while relative performance benefitted from being underweight in emerging markets, some of the fund’s stocks in developed Asia ex-Japan performed poorly as emerging market anxieties spilled over into that region. Stock selection in North America was largely positive, with strong performances from banking and financial services multinational JP Morgan, insurance corporation AIG and e-commerce giant eBay. Capital investment remains sluggish globally and a number of industrial companies have downgraded growth expectations. United Technologies and Schneider Electric were among the worst performers. With the ebb and flow of the oil price during the period (see below), our exposure to the energy sector was a headwind; however, the portfolio benefitted when its largest energy holding, BG Group, was bid for by Shell.
MNP : Martin Currie Global Portfolio first half benefits from BG bid