MIGO Opportunities Trust has announced that long-serving co-manager Nick Greenwood will step back from portfolio management after over 20 years at the helm. Charlotte Cuthbertson, already co-manager, will now be joined by Tom Treanor, Asset Value Investors (AVI’s) head of research (both pictured), effective 18 June 2025. Nick will remain at AVI as a consultant.
The board and AVI have also agreed to reposition MIGO’s portfolio towards a higher conviction strategy, narrowing the number of holdings from 40 to 10–15 core positions. The move is intended to increase influence with investee company boards and enhance returns from the deep pool of discount opportunities in the investment trust sector.
A revised fee structure accompanies the change in approach. The annual management fee will fall to 0.35% (from 0.65%) of the lower of NAV or market cap, while a performance fee of 15% of NAV total returns above SONIA + 3% will be introduced, subject to a high watermark and capped at 2.5% of NAV or market cap. AVI will reinvest 25% of any performance fees earned into MIGO shares, with a 3-year lock-up.
To help maintain flexibility, the board also plans to introduce a capital return mechanism to prevent NAV exceeding £150m. Existing share buyback, dividend, and 3-yearly realisation policies will remain in place.
Chairman Richard Davidson said the changes should sharpen MIGO’s ability to exploit discount opportunities and enhance shareholder alignment. Charlotte Cuthbertson and Tom Treanor emphasised the importance of focus, activism, and detailed research in realising value in the current market.
[QD comment MR: These changes mark a significant evolution for MIGO, with a bold move toward a higher conviction, activist-led strategy that seeks to fully exploit the deep discounts across the investment trust sector. The reduction in holdings and more aggressive engagement with investee boards echoes the kind of hands-on approach that has delivered strong results for AVI elsewhere.
The revised fee structure, particularly the reduction in base fees and performance alignment via share reinvestment, is also a notable positive for shareholders. While transitions of this nature carry execution risk, Charlotte and Tom bring strong sector expertise and a clear plan for delivering value. The proposed NAV cap and capital return mechanism add a further layer of discipline that should keep MIGO agile and aligned with shareholder interests.]
