Have your cake and eat it

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. Read the five compelling reasons to invest in Martin Currie Global Portfolio Trust.

GPT dividends cake

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. 

To mark the 17th anniversary of Tom Walker’s appointment as portfolio manager of Martin Currie Global Portfolio Trust, we have identified five significant benefits that its shareholders enjoy - and you could too.


Reason 1 - Strong long-term performance

Strong long-term performance

  • The performance history under Tom Walker’s management since 2000 has seen the share price increase by just over 275%. If you had invested the current ISA allowance of £15,240 then you’d now have over £57,200 – that’s more than £41,000 of growth on a total return basis with income reinvested*.
  • This track record shows strong outperformance of both the UK and global equity markets, as shown in the chart opposite, and is evidence of good stock-picking ability. Please remember that past performance is not a guide to future returns.
  • If you had put your money in the bank you would have only £6,000 more after 16 years. That’s over £35,000 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.
Reason 2 - Attractive income in a low yield environment

Attractive income in a low yield environment

GPT dividends cake
  • In the current low interest rate environment many investors are finding it difficult to achieve a reasonable income.
  • With a current dividend yield of 1.9% this Company’s yield is above the sector average, the Association of Investment Companies (AIC) global sector. (Source AIC 31 October 2016).
  • If you had invested the current ISA allowance 16 years ago, you would have received more than £8,000 in dividend payments alone. And even though taking dividends reduces your total return, the original investment would have more than doubled.
Reason 3 - Inflation-beating income growth

Inflation-beating income growth

  • If you would like quarterly income payments, this Company could be for you. Distributions are made in January, April, July and October. This could be used to supplement a pension or any other income – or it could be reinvested to boost your total return.
  • This Company has never cut its dividend – 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 retaining 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 7.2% – although past performance is not a guide to future returns. That means the growth in income payments has easily beaten inflation which has been 2.8% per year over the last 16 years. (Source: Bloomberg, as at 31 October 2016). 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.

GPT Five reasons to invest 4

Global reach – choosing from the world’s leading companies

  • Under the leadership of portfolio manager, Tom Walker, we scour the world to find the very best investment opportunities.
  • We have a team of 61 investment specialists and meet more than 1,500 companies globally every year.
  • As at end October 2016 the portfolio was invested in around 52 companies from 15 different countries and includes some of the world’s best known companies such as Apple, Toyota, Lockheed Martin and the owners of exciting brands like TK Maxx, Facebook and Victoria’s Secret.

GPT Five reasons to invest 5

Shareholder-friendly policies

  • 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 has introduced an innovative ‘zero discount’ policy to address key parts of this issue. Under normal market conditions, the policy aims to limit the discount to 1% below the NAV and means that the share price will, typically, trade close to the NAV. In extreme market conditions however, implementing this policy may not be possible.