MIGO Opportunities Trust PLC GBP · LSE:MIGO
MIGO Opportunities Trust PLC GBP — MIGO Opportunities Trust — Investor Presentation (May 2023)
24 slides from MIGO Opportunities Trust PLC GBP's investor presentation, May 2023
Slide 1: MIGO Opportunities Trust plc
MIGO Opportunities Trust plc “Exploiting opportunities in the closed–end fund sector” MIGO OPPORTUNITIES TRUST PLC FOR INVESTMENT PROFESSIONALS ONLY. CAPITAL AT RISK.
Slide 2: Overview of trust
Overview of trust — Value: Seek to buy trusts at significant discount to their intrinsic value — Diversified: Global exposure Mixed assets ranging from equities, private equity, commodities, property — Different: Buying esoteric, overlooked assets that have low correlation to mainstream mark
Slide 3: Fund manager
Fund manager Nick Greenwood | Fund manager MIGO Opportunities Trust plc, Premier Miton Worldwide Opportunities Fund Nick Greenwood joined Premier Miton in July 2002 He began his career in private client stock broking and was a founder member of Christows stockbroking operation in 1991. He joined the
Slide 4: Finding discount opportunities
Finding discount opportunities Where trusts may fall out of the process: Large trusts Is it trading at a discount? Fixed income Do we like the asset class? P2P lenders Do we have confidence in the NAV? Z-shares Is it overleveraged? Family-controlled Is there a catalyst? Trying to buy £1 worth of ass
Slide 5: Discount to Par
Discount to Par The ideal scenario NAV: +43% Share Price: +104% — A rising NAV and a narrowing discount are a powerful combination — Can be from an asset class coming back into favour, strong performance, better marketing — An example of this would be Ecofin NAV Share price Chart is for illustrative
Slide 6: Realisation
Realisation Even at the end of a lifecycle, can still be profitable NAV: +53% Share price: +73% 120 — Can be wind up or takeover 100 — Discount narrows as assets are sold off and the cash handed back to shareholders at NAV 80 % 60 40 NAV Share price 20 0 Chart is for illustrative purposes only. 6
Slide 7: Performance versus index
Performance versus index Cumulative performance % 1 year 3 years 5 years Trust NAV -10.9 56.9 19.8 Trust Share Price (Bid) -7.9 58.3 22.1 SONIA +2% 1 4.3 8.7 14.6 AIC Flexible Investment Sector -5.5 32.9 11.3 Numis All-Share 0.8 45.7 24.2 Calendar year performance % 2018 2019 2020 2021 2022 2023 YTD
Slide 8: Annualised performance
What is triggering demand? 9 Mean annualised volatility 13.6% D 8 7 6 Annualised performance Mean performance 3.4% E 5 C 4 B 3 2 F 1 0 -1 -2 A -3 -4 0 5 10 15 20 25 30 Annualised volatility Key A FTSE Actuaries UK Conventional Gilt Over 10 Years B MIGO Opportunities Trust plc price C MIGO Opportunit
Slide 9: Investing should be more like watching paint dry
“ Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. Paul Samuelson (American economist) ” 9
Slide 10: Correlation
Correlation R2 Trust FTSE 100 Index FTSE World Index Trust 0.23 0.13 FTSE 100 Index 0.23 0.42 FTSE World Index 0.13 0.42 Trust risk vs. indices 0.60 0.42 0.40 0.23 0.20 0.13 0.00 MIGO Opportunities vs. MIGO Opportunities vs. FTSE 100 Index vs. FTSE 100 Index FTSE World Index FTSE World Index Source:
Slide 11: Investment Trusts
Investment Trusts — NAV and share price can perform differently – NAV is the underlying assets whereas share price is the balance of supply and demand in the market — With a closed-ended structure the manager is protected from inflows and outflows — There are 417 London listed funds1 — These have an
Slide 12: Disruption of supply and demand in investment trust world
Disruption of supply and demand in investment trust world Private Client Private Client Stockbroker Stockbroker Wealth Manager Private Client Private Client Stockbroker Mega-chain Stockbroker ££££bn Private Client Private Client Stockbroker Stockbroker 12
Slide 13: Changing ownership of investment trusts
Changing ownership of investment trusts — Periodicals such as MoneyWeek and Investors Chronicle tip investment trusts to their readers — Self-directed investors then buy trusts through platforms — Examples: — Novia — Zurich — Aviva — Standard Life — Hargreaves Lansdown — FundsNetwork — AJ Bell 13
Slide 14: Move to alternatives
Move to alternatives Issuance by asset class in the investment trust sector 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 2015 2016 2017 2018* 2019 2020 2021 2022 Equity Alternative Source: Numis Securities Research as at 31.12.2022. *The 2018 equity figure excludes Smithson Investment Trust. 14
Slide 15: Investment process: Diversification
Investment process Berlin residential Georgia private equity Mid cap Japan Macau apartments Vietnam Private companies Private technology disrupters Mining finance Microcap UK Shipping Diversification Property lending Corporate mortgages US Hedge Fund Mixed light industrial Second hand life policies
Slide 16: Attribution
Attribution Over 1 year Positive Negative Contribution to Contribution to return % return % Georgia Capital 0.8 Real Estate Investors -0.6 Dunedin Enterprise-Ord 0.7 Industrials REIT -0.7 Amedeo Air Four Plus 0.6 Vietnam Enterprise Inv -0.7 Macau Property Opp Fund 0.4 River & Mercantile UK Micro -0.
Slide 17: Themes: Uranium
Themes: Uranium — Green energy is becoming increasingly important. Clear that ambitious carbon zero targets can only be achieved with use of nuclear energy — Increasing amount of nuclear reactors being built across the globe increasing demand for uranium and planned closures are not happening as wel
Slide 18: Themes: Biotech
Themes: Biotech — Biotechnology has fallen out of favour as many investee companies have seen resources diverted from their branch of medicine as focus has turned to fighting the pandemic. This will delay rather than cancel profits — Investors remain nervous that a Democrat controlled Congress (with
Slide 19: Themes: High OCF
Themes: High OCF — The FCA have rolled out legislation which requires Oakley Capital share price and NAV performance investment trusts to disclose charges from running 24 July 2019 to 31 March 2023 the underlying portfolio making them out of line with open-ended funds 700 — These charges have always
Slide 20: Entrants and exits
Entrants and exits Over 2023 ytd Entrants Exit AVI Japan Opportunity trust Herald Investment Trust UK Treasury 0.125% 31/01/2024 Source: Bloomberg from 31.12.2022 to 31.03.2023. 20
Slide 21: Average underlying discount
Average underlying discount Top 12 stocks Weight (%)* Discount (%)1 VinaCapital Vietnam Opportunity Fund 5.9 -16.0 Georgia Capital 4.5 -62.4 Baker Steel Resources Trust 4.4 -38.9 Oakley Capital Investments 4.2 -31.2 Yellow Cake 3.7 -11.0 Geiger Counter 3.2 -10.6 New Star Investment Trust 3.1 -32.9 N
Slide 22: Conclusion
Conclusion Exploiting inefficiencies in investment trust sector — Less correlated to wider markets — Diversification – not reliant on one asset class/geography — Outsourced managed solution for access to esoteric investment trusts such as Macau Property, Life Settlements — Historic risk metrics make
Slide 23: Important information
Important information For Investment Professionals only. No other persons should rely on the information contained within. Whilst every effort has been made to ensure the accuracy of the information provided, we regret that we cannot accept responsibility for any omissions or errors. The views and o
Slide 24: Slide 24
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