* As of 31 March 2024
** As of 31 October 2023
MIGO invests in discount opportunities in the closed-ended sector where the managers believe there is a catalyst to extract the value. The trust is able to invest in any geography or asset class providing it is held in an investment trust structure.
31 March 2024 | % of NAV |
---|---|
VinaCapital Vietnam Opp Fund Ord | 6.2 |
Georgia Capital PLC | 6.1 |
Oakley Capital Investments Ord | 4.4 |
Baker Steel Resources Ord | 4.0 |
Aquila European Renewables Ord | 4.0 |
JPMorgan Indian Ord | 3.7 |
Tufton Oceanic Assets | 3.4 |
NB Private Equity Partners Class A Ord | 3.0 |
Phoenix Spree Deutschland | 3.0 |
Real Estate Investors Plc | 3.0 |
Total | 40.8 |
MIGO Opportunities Trust (MIGO) was established in 2004 in order to invest in opportunities in the closed-ended sector. The trust was previously run at Premier Miton plc before moving to Asset Value Investors in 2023. As at 31 December 2023 the total assets under management of MIGO was £84m.
MIGO’s process begins with the investment trust universe which is around 600 trusts. We then filter down these trusts using the below questions.
Once we have a shortlist we undertake due diligence with meetings and research in order to find the best ideas for the portfolio.
The stocks within the portfolio are continuously monitored and a deep dive is undertaken every 6 months.
MIGO focuses on creating diversification whilst also ensuring position sizing is large enough to contribute to performance. Individual stocks rarely exceed 6% of NAV and a theme is capped at 8%.
At MIGO, we believe that integrating ESG and sustainability factors into our investment process, alongside traditional financial factors, is important to enable us to deliver strong and durable performance to our clients and to meet our broader investment responsibility. ESG matters, including climate change are part of our analysis and risk assessment when deciding whether an investment should be made. Climate change poses both risks and opportunities. The transition to a low-carbon economy will affect all businesses, irrespective of their size, sector, or geographic location. Therefore, no company’s revenues are immune, and the assessment of such risks must be considered within any effective investment approach.
As active investors, once we have invested in a company, we take our stewardship responsibilities seriously. MIGO acknowledges that it can have an indirect impact on the community and the environment through the companies it holds in its portfolio. We look to engage with the boards and management of constituent holdings on an ongoing basis and create an active dialogue on ESG factors. Often, engagement with investee boards is undertaken with a view to helping realise value or to address potential issues with the trust’s governance. We seek to ensure good governance practices are being upheld and encourage adherence to responsible and ethical conduct. MIGO also views voting at company meetings to be an important lever in our stewardship responsibilities and will vote at company meetings when we have the opportunity to do so.
The AIC has also produced a guide to investment trusts for people who want to learn more about the key concepts of investing, the advantages of using diversified funds to invest and the specific features of investment companies.
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The trust had a quiet month returning 0.1% in comparison to the FTSE Closed-Ended Funds Index and the FTSE All-Share which were up 2.7% and 4.8% respectively. Over the quarter, the trust’s net asset value has moved broadly in line with both indices. The investment trust sector continues to languish in the doldrums with discounts remaining wide as the sector continues to face a number of headwinds.
After a strong start to the year February was a more difficult month for the trust with the share price and the NAV falling 0.6% and 0.5% respectively. The US market was up over 5% during the month buoyed by the performance of Nvidia. Markets are struggling to keep pace with the tech giants in the US, but we believe that the value in investment trusts will eventually come through.
Introduction MIGO’s NAV increased by 2.6% with exposure to Uranium a key driver.
Sadly, the rally that the investment trust sector had been enjoying ground to a halt in January mainly due to expectations of a fall in interest rates becoming less certain. Pleasingly our portfolio had a positive month and returned 2.7%.
December was an important month for MIGO Opportunities. The management contract transferred to Asset Value Investors where we, the management team (Nick Greenwood and Charlotte Cuthbertson), were reunited, Charlotte having already joined AVI in July. We are excited about this new chapter given AVI’s considerable experience in operating and managing investment trusts. Our style and process will remain unaltered at our new house.
On Monday 18th Dec 2023 Nick Greenwood and Charlotte Cuthbertson began managing MIGO at Asset Value Investors…