A ready-made value portfolio, suggests research house
“MAVT could be employed as a standalone portfolio for a value and UK-orientated investor”
Momentum Multi-Asset Value Trust (MAVT) is a ready-made portfolio for investors wanting to get exposure to the value end of the market, according to researchers at Kepler.
The trust uses a hybrid approach, says Kepler, buying direct stocks in the UK portion of the portfolio and using highly active, specialist third party managed open and closed-ended funds elsewhere.
MAVT has performed well against a passive portfolio tracking its strategic asset allocation in recent years, says Kepler, performing in line despite value-based investing being heavily out of favour until recently.
Objectives of the trust are to grow the dividend in excess of inflation, to generate a total return greater than UK CPI + 6% per annum over a full market cycle and to exhibit less risk than a full equity portfolio.
The current yield of around 3.5% compares to the FTSE UK All-Share Index yield of 3.1% and the board have indicated a likely increase in the level of dividends in the current financial year ending April 2022, barring unforeseen circumstances.
“Against a value-tilted passive portfolio, MAVT has added significant alpha.,” concludes Kepler.
“With this in mind, MAVT could be employed as a standalone portfolio for a value and UK-orientated investor or be used to diversify a portfolio with existing growth exposures.”
The current share price is 190p, a very small discount to NAV.
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