Page 35 - DIY Investor Magazine - Issue 28

With equities in particular producing disappointing dividends, the trust’s managers have looked to specialist assets and fixed income to buoy its dividends, with solid results. The trust’s board is also able to make use of the investment trust structure to support its income distribution, using revenue reserves from more abundant times to smooth its dividend over leaner periods. The net result has been that dividends have risen by 2.5% p.a. over the last five years, with the trust yielding c.4%. For a trust with a dual mandate – targeting income and growth – it is important to look at both sides of this coin, and the trust also has a solid track record on the growth side. Here, it is worth noting that the trust aims to achieve total returns of at least CPI +6% p.a. net of costs over a typical investment cycle. We calculated that, in the ten years to 26 March 2021, the trust achieved annualised returns of 9.1%. In the ten years to the end of February (the most recent published data), CPI was 1.7% on an annualised basis, meaning that the trust achieved an outperformance of 1.4% above its stated target. A CHANGE IS GOING TO COME We already believed that MAVT (formerly SIGT) was an attractive, diversified source of yield, as described in our most recent research. With the depth and breadth of Momentum’s resources bolstering its investment team’s proven investment process, the attractions of this trust have been reinforced. A change certainly – but in our view one likely for the better. CLICK HERE TO READ OUR LATEST RESEARCH ON MOMENTUM MULTI-ASSET VALUE TRUST CLICK TO VISIT: To buy this trust login to your EQi account Select Momentum Multi-Asset Value Trust (MAVT) - GB0008769993 Disclaimer This report has been issued by Kepler Partners LLP. The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research. Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision. Kepler Partners is not authorised to make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment. This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only. Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm’s internal rules. A copy of the firm’s Conflict of Interest policy is available on request. 35 DIY Investor Magazine | Apr 2021