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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.
Income shares
Growth shares
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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