Significant opportunity for UK equities – investment trusts cheapest they’ve been since GFC – says CT Global as it reports annual results

by | Aug 1, 2023

CT Global Managed Portfolio Trust PLC (CPMG and CMPI) has today revealed it’s annual financial results for the year ended 31 May 2023 and highlighted real value in the UK Investment Trust sector, somewhere they see opportunities for investment and growth.

Income Shares – 2023 Highlights

  • Annual dividend increased by +8.3% to 7.20p per Income share compared to the prior year
  • Dividend yield of 6.0% at 31 May 2023, based on total dividends for the financial year of 7.20p per Income share. This compares to the yield on the FTSE All-Share Index of 3.7%
  • Net asset value total return per Income share of -7.4%, underperforming the total return of the FTSE All-Share Index of +0.4% by -7.8% points
  • Share price total return per Income share of -2.1%, underperforming the total return of the FTSE All-Share Index of +0.4% by -2.5% points
  • Net asset value total return per Income share of +143.3% since launch on 16 April 2008, the equivalent of +6.1% compound per year. This has outperformed the total return of the FTSE All-Share Index of +128.0%, the equivalent of +5.6% compound per year

Growth Shares – 2023 Highlights

  • Net asset value total return per Growth share of -5.8%, underperforming the total return of the FTSE All-Share Index of +0.4% by -6.2% points
  • Share price total return per Growth share of -7.8%, underperforming the total return of the FTSE All-Share Index of +0.4% by -8.2% points
  • The net asset value per Growth share has increased by +134.8% since launch on 16 April 2008 the equivalent of +5.8% compound per year. This has outperformed the total return of the FTSE All Share Index of +128.0%, the equivalent of +5.6% compound per year

David Warnock, Chairman of CT Global Managed Portfolio Trust, commented: “Whilst the chances of a recession next year have increased, valuations of UK companies have already gone some way to take account of this possibility. Valuations are at historically low levels both in absolute and relative terms and on a longer-term perspective offer the patient investor the prospect of attractive returns. As always, the Manager’s focus is on selecting only the highest quality investment companies with experienced managers in the belief that this will serve shareholders’ interests best.”

Peter Hewitt, fund manager of CT Global Managed Portfolio Trust, commented: “Discounts across the investment trust industry are at levels not seen since the global financial crisis of 2008 and 2009. Over the past year the average sector discount has widened from 8% to 16%.” “The UK stock market has once again underperformed and whilst this may continue in the near term, valuations of UK equities are discounting the most pessimistic of outcomes and are substantially below long-term averages. There is no doubt that patience is required and will likely be tested. However, there is a significant opportunity for positive returns from UK equities which is reflected in both portfolios increasing exposure to UK equity-focused investment companies

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