Asset manager BMO has released results for the six months to 30 November for its Managed Portfolio Trust and it truly is a mixed bag.
While the income part of the portfolio beat its benchmark, generating a dividend yield of 4.4 percent compared to the FTSE All-Share return of 4.2 percent, its growth stocks under-performed in what was admittedly an upbeat market.
The net asset value total return per share grew by 4.6 percent during the six month period, outpaced by the FTSE All-Share return of 5.8 percent.
This product is a trust of trusts though, and the firm reported that its healthcare and technology holdings drove the performance during the reporting period.
Within its income portfolio, Swiss-based HBM Healthcare Investments provided some of the firepower, its share price rising 21 percent during the six month. The portfolio’s other main contributors were specialised healthcare REIT Assura, also rising by 21 percent and Invesco Perpetual UK Smaller Companies Investment Trust whose share price gained 18 percent.
Despite trailing the benchmark, the growth part of the portfolio also had some help from the healthcare sector. Biotech’s Growth Trust gained 20 percent while Worldwide Healthcare Trust was up 17 percent.
The firm said that similar to previous years, its tech holdings bolstered the growth part of the portfolio. In total return terms, HgCapital Trust and Polar Capital Technology Trust rose by 19 and 16 percent respectively.
If looked at over a ten-year basis, the returns are impressive, with the growth part of the portfolio achieving a compound annual return of 9.8 percent and its income equivalent 10.3 percent.
Commenting on the results, chairman Colin McGill said: “. The period under review saw a decent positive return from the UK equity market however there was some significant volatility caused by political uncertainty in the UK.
“A strengthening Sterling, (which had been weak for a prolonged period) diluted returns from overseas markets as the threat of a ‘no deal’ Brexit waned. Pleasingly, in line with our stated objectives, we have been able to increase our interim dividends. The yield on the Income shares was higher than that of the FTSE All-Share Index at 30 November 2019.”
