F&C Managed Portfolio Trust has published interim results for the six months ended 30 November 2015, announcing a net asset value total return of -5.1% for the Income shares and -2.4% for the Growth shares compared to the FTSE All-Share Index return of -6.4%.
The key drivers of the performance of the Growth Portfolio were holdings exposed to UK mid and smaller companies and also holdings that specialise in the technology sector. In the case of the former, a benign background of decent levels of growth in the domestic economy and relatively attractive ratings of smaller companies were behind strong returns from; River and Mercantile UK Micro Cap which gained 14%, Diverse Income Trust which gained 10% and Miton UK MicroCap Trust which was ahead by 7%. In the technology sector, very strong results from large US technology companies helped Polar Capital Technology Trust to a 5% rise and the Allianz Technology Trust to a 1% gain.
In the Income Portfolio, where it is harder to gain the same exposure to the mid and small cap trusts due to their low yield, there are still some holdings which were beneficiaries. Standard Life UK Smaller Companies Trust Convertible gained 11% whilst Mercantile Investment Trust, the UK mid cap specialist was ahead by 4%. Other notable performers were the Edinburgh Investment Trust which rose 3% due to strong stock selection and 3i Infrastructure which also gained 3% following the payment of a special dividend.
The underperformers in both portfolios were focussed on the Asia Pacific and Emerging Markets sectors where the concerns over growth prospects were most acute. Murray International, which is a holding in both portfolios fell 19% whilst in the Growth Portfolio, Genesis Emerging Markets lost 14% and Blackrock Frontiers Trust was down 10%. Similarly in the Income Portfolio JPMorgan Global Emerging Markets Income Trust declined 23%, Aberdeen Asian Income Fund fell 20% and Henderson Far East Income was 17% lower. One encouraging note was that all of these trusts have maintained their dividends.
F&C Managed Portfolio was selected as the rollover option for the winding up of The Cayenne Trust and they acquired approximately £12.9m of cash from The Cayenne Trust on 2 December 2015. Around £7m related to elections for Income shares and £5.9m for Growth shares. Under the terms of the rollover these shares were issued at a premium to NAV of approximately 0.85%.
FMPG / FMPI : F&C Managed Portfolio beats UK market