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CT Global Managed Portfolio underperforms benchmark during tough year

CT Global Managed Portfolio underperforms benchmark during tough year – CT Global Managed Portfolio has posted its annual report covering the 12 months to 31 May 2022.

During the period, Columbia Threadneedle Investments acquired BMO’s EMEA asset management business, which included the company’s manager, BMO Investment Business Limited. Consequently, a change of name for the trust was necessary and the board resolved to change it to CT Global Managed Portfolio Trust from 29 June 2022.

Looking at performance, over the 12 months under review, the NAV total return (capital performance plus the reinvestment of any dividends paid) was -1.5% for the Income shares and -11.4% for the Growth shares, both of which underperformed the 8.3% total return from their benchmark index

For the year, four interim dividends have now been paid, totalling 6.65p per Income share. The fourth interim dividend was paid after the year-end on 8 July 2022.

In order to make the interim dividends of more equal amounts, the first three interim dividends were increased to 1.55p per Income share and the fourth interim dividend was maintained at the same rate as in the prior financial year (of 2.00p per Income share) and, therefore, the total annual dividend increased by 7.3% in comparison to the prior financial year. This has been achieved while adding £80,000 to the revenue reserve.

Financial highlights:

Income shares

  • Annual dividend increased by 7.3% to 6.65p per Income share compared to the prior year.
  • Dividend yield(1) of 5.1% at 31 May 2022, based on total dividends for the financial year of 6.65p per Income share. This compares to the yield on the FTSE All-Share Index of 3.3%. Dividends are paid quarterly.
  • Net asset value total return(2) per Income share of -1.5% for the financial year, underperforming the total return of the FTSE All-Share Index (+8.3%) by -9.8%.
  • Share price total return(2) per Income share of -4.4% for the financial year, underperforming the total return of the FTSE All-Share Index (+8.3%) by -12.7%.
  • Net asset value total return per Income share of +162.9% since launch on 16 April 2008, the equivalent of +7.1% compound per year. This has outperformed the total return of the FTSE All-Share Index of +127.0%, the equivalent of +6.0% compound per year.

Growth shares

  • Net asset value total return per Growth share of -11.4% for the financial year, underperforming the total return of the FTSE All-Share Index (+8.3%) by -19.7%.
  • Share price total return per Growth share of -11.9% for the financial year, underperforming the total return of the FTSE All-Share Index (+8.3%) by -20.2%.
  • The net asset value per Growth share has increased by +149.4% since launch on 16 April 2008, the equivalent of +6.7% compound per year. This has outperformed the total return of the FTSE All-Share Index of +127.0%, the equivalent of +6.0% compound per year.
  • The net asset value total return per Growth share has outperformed the total return of the FTSE All-Share Index over three years, five years, ten years and from launch to 31 May 2022.

Statement from the chair:

In an environment of rising inflation, interest rates and bond yields, along with heightened geopolitical risks due to the Russia/Ukraine conflict it is likely equity markets will continue to experience periods of volatility. In the short term this will affect investment companies with exposure to technology and high growth sectors. However, although exposure in these areas has been pared back, the intention is that they remain a core element of the Growth Portfolio as it is these types of investment companies which generate strong performance and excess returns over the long run. 

With the threat of recession raised, both Portfolios will be managed in a cautious manner. Discounts across the investment company universe reflect the current uncertainties in both economies and equity markets, however, for the patient investor, they offer better value than for many years. As always, the focus is on selecting only the highest quality investment companies with experienced managers in the belief that this will serve shareholders’ interests best.

CMPI/CMPG : CT Global Managed Portfolio underperforms benchmark during tough year

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