Have your cake and eat it

Five great reasons to invest in
Martin Currie Global Portfolio Trust

Not all global equity funds are created equal.

Presented with such a wide range of markets and opportunities, picking the best companies to invest in requires a rigorous process, skill, experience and a long-term view.

We have identified five significant benefits
that shareholders enjoy - and you could too.

Reason 1:
Impressive long-term performance

Reason 1: Impressive long-term performance

Over the period since the Company was formed in 1999 the share price has increased by 367%. This track record shows outperformance of both the UK and global equity markets, as shown in the chart below. Please remember that past performance is not a guide to future returns.

To investors it means that if you had invested the current ISA allowance of £20,000 in 1999 and reinvested the dividends paid, then you’d now have over £93,400 – that’s more than £73,000 of growth.

Past performance is not a guide to future returns.*Source: Martin Currie to 31 January 2018. Index performance figures are quoted in £. Fund performance shows total returns and is quoted in £ net of fees. †Source: Bloomberg to 31 January 2018. LIBOR 3-month rate has been used to represent a bank account. #Source: Martin Currie and Morningstar. Bid to bid basis with net income reinvested over the periods shown in sterling terms. These figures do not include the costs of buying and selling shares in an investment trust. If these were included, performance figures would be reduced. Investors may be subject to tax on their distributions. Prior to 30 June 2011 the Company’s benchmark was the FTSE All-Share index and the FTSE World index thereafter.

Past performance is not a guide to future returns.

*Source: Martin Currie to 31 January 2018. Index performance figures are quoted in £. Fund performance shows total returns and is quoted in £ net of fees. 
†Source: Bloomberg to 31 January 2018. LIBOR 3-month rate has been used to represent a bank account. 
#Source: Martin Currie and Morningstar. Bid to bid basis with net income reinvested over the periods shown in sterling terms. These figures do not include the costs of buying and selling shares in an investment trust. If these were included, performance figures would be reduced. Investors may be subject to tax on their distributions. Prior to 30 June 2011 the Company’s benchmark was the FTSE All-Share index and the FTSE World index thereafter.

If you had put your money in the bank you would have only £9,000 more after 17 years. That’s over £64,000 less than an investment in Martin Currie Global Portfolio Trust.

Subject to certain limits, the money in your bank account is not at risk, while in this investment trust your capital is at risk. Past performance is not a guide to future returns.

Consistent too...

In 2017 Martin Currie Global Portfolio Trust was highlighted as 'one of the most consistently performing investment trusts over the last decade'. The announcement was made by the industry trade body, the Association of Investment Companies (AIC) who undertook the analysis looking at periods of outperformance and share price volatility.

Reason 2:
Attractive income in a low yield environment

Reason 2: Attractive income in a low yield environment

A long period of low interest rates means that it has been hard to achieve a reasonable income.

Predominantly an investment designed for growth, Martin Currie Global Portfolio Trust also pays dividends to shareholders.

The current dividend yield of 1.7% is around 25% above the sector average, the Association of Investment Companies (AIC) global sector. (Source AIC, 31 January 2018).

If you had invested the current ISA allowance when the company started in 1999, you would have received more than £11,400 in dividend payments alone.

And even though taking dividends reduces your total return, the original investment would still have grown substantially - more than doubled in fact.

Reason 3:
Inflation-beating income growth

Reason 3: Inflation-beating income growth

If you would like quarterly income payments, this Trust could be for you.

Distributions are made in January, April, July and October. This income could be used to supplement a pension or any other income stream you have – or it could be reinvested to boost your total return.

And the dividend has never been cut – even through some of the most difficult equity market conditions such as the global financial crisis in 2008.

One of the key benefits investment trusts offer is the ability to retain earnings in the good years to bolster dividend payments in others. This is a real advantage over similar investments, such as OEICs, which cannot do this and may therefore present a more volatile income stream.

The annualised dividend growth rate since inception has been 6.4% – although past performance is not a guide to future returns.

That means the growth in income payments has easily beaten inflation which has been eating up savings at an average rate of 2.7% per year since 2000. (Source: Bloomberg, as at 31 January 2018).

However, the majority of charges will be deducted from the capital of the Company. This will be a constraint on capital growth in order to maintain the income stream.

Reason 4:
Global reach: choosing from the world's best companies

Reason 4: Global reach - choosing from the worlds's best companies

Since 2000, the portfolio has been managed by global equity investment specialist, Tom Walker. Under his leadership the team at Martin Currie scour the world to find the very best investment opportunities.

Martin Currie has a team of 54 investment specialists and meet more than 1,100 companies globally every year.

Past performance is not a guide to future returns. Source: Bloomberg, 30 January 2018. The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were, or will prove to be, profitable. 

Past performance is not a guide to future returns. 

Source: Bloomberg, 30 January 2018. The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were, or will prove to be, profitable. 

As at end November 2017 the portfolio was invested in around 49 companies from 16 different countries and includes some of the world’s best known companies such as Apple, Facebook, Toyota, Lockheed Martin and the owners of exciting brands like TK Maxx, Facebook and Victoria’s Secret.

The portfolio consists of investments, many of which are household names or own well known brands like Victoria's Secret.

The portfolio consists of investments, many of which are household names or own well known brands like Victoria's Secret.

Reason 5:
Shareholder-friendly policies

Reason 5: Shareholder-friendly policies

Like other shares in the stockmarket, market sentiment can affect the value of the share price of an investment trust and, as a result, the share price may be higher (premium) or lower (discount) than the value of the assets held, known as the net asset value or NAV.

To some investors this may appear complicated and provides a reason to use other types of investment vehicle.

Martin Currie Global Portfolio Trust introduced the innovative ‘zero discount’ policy in July 2013 to address key parts of this issue. Under normal market conditions, the policy aims to limit the discount. This means that the NAV and the share price will, typically, trade close to the NAV.

This policy has the potential to reduce discount volatility (see chart on the right).

In extreme market conditions however (like those following Brexit), implementing this policy may not be possible.

A reminder of our five reasons to invest in Martin Currie Global Portfolio Trust

Martin Currie Global Portfolio Trust aims to achieve long-term capital growth in excess of the capital return of the FTSE World index. Tom Walker, supported by an experienced team, aims to select around 50 of the best international stocks for the portfolio.

The diversification offered by many global portfolios means that they are often considered as a 'one stop shop' for investors or as a 'core' holding' supplemented by regional, or other niche funds.

Five reasons: a summary

Reason 1: Impressive, consistent long-term performance

Reason 2: Attractive income in a low yield environment

Reason 3: Inflation-beating income growth

Reason 4: Global reach - choosing from the worlds's best companies

Reason 5: Shareholder-friendly policies

So, maybe you can have your cake and eat it!

Risks and important information

This information is issued and approved by Martin Currie Investment Management Limited. It does not constitute investment advice.

Market and currency movements may cause the capital value of shares, and the income from them, to fall as well
as rise and you may get back less than you invested.

Please note that, as the shares in investment trusts are traded on a stockmarket, the share price will fluctuate in accordance with supply and demand and may not reflect the value of underlying net asset value of the shares.

Depending on market conditions and market sentiment, the spread between purchase and sale price can be wide. As with all stock exchange investments the value of investment trust share purchases will immediately fall by the difference between the buying and selling prices, the bid-offer spread.

The value of investments and the income from them may go down as well as up and is not guaranteed. An investor may not get back the amount originally invested.

Investment trusts may borrow money in order to make further investments. This is known as 'gearing' and can enhance shareholder returns in rising markets but, conversely, can reduce them in falling markets.

The majority of charges will be deducted from the capital of the company. This will constrain capital growth of the company in order to maintain the income streams.

Martin Currie Investment Management Limited, registered in Scotland (no SC066107). Registered office: Saltire Court, 20 Castle Terrace, Edinburgh EH1 2ES. Tel: 0808 100 2125 Fax: 0870 888 3035 www.martincurrie.com. This company is authorised and regulated by the Financial Conduct Authority. Please note that calls to the above number may be recorded

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