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Investment trust insider on funds of funds

Investment Trust Insider on Perpetual Income and Growth

Investment trust insider on funds of funds – James Carthew: Flexible trusts of trusts pick private equity

From time to time, I find it is worth checking up on what managers of the funds of funds in the AIC Flexible Investment sector have been up to – managers such as Peter Hewitt of BMO Managed Portfolio (BMPG/BMPI) and Nick Greenwood of MIGO Opportunities (MIGO). Both trusts have generated decent, and similar, long-term returns for investors, although their fortunes often diverge in the short term. In recent months, widening share price discounts in the underlying portfolios have had an impact.

BMO Managed Portfolio has two distinct pools – one focused on capital growth and the other on income. Hewitt has run the trust since it was listed in 2008. He’s a veteran of the asset management industry, having started working for Ivory & Sime back in 1983.

In 2021, the growth portfolio (BMPG) was for a time leading many performance tables. The tide turned when sentiment towards growth stocks shifted. The list of investments in the BMPG portfolio at the end of November 2021 was headed up by Allianz Technology (ATT), Scottish Mortgage (SMT), Monks (MNKS), HgCapital (HGT) and Chrysalis (CHRY) – collectively they accounted for 21% of the portfolio.

By the end of April 2022, the picture had shifted dramatically. The list was then headed up by Hg Capital, Fidelity Special Values (FSV), Law Debenture (LWDB), Mid Wynd (MWY) and Ruffer Investment Company (RICA) and they accounted for 16.7% of the portfolio.

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