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Multi-Asset class trusts & JP Morgan Multi-Asset trust

Closed-end funds and OEICs
richfool
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Multi-Asset class trusts & JP Morgan Multi-Asset trust

#189361

Postby richfool » December 26th, 2018, 3:30 pm

Over the Christmas period I have been taking a look at how my IT's have fared in the recent falls, and also how the supposed "wealth preservers" such as PNL and CGT, in the Flexible Investment (multi-asset class) sector, have fared. (OK, that may well be somewhat premature, as the falls are still continuing).

I noted that CGT (Capital Gearing trust) has performed better than PNL (Personal Assets), (in fact over all periods up to 10 years), maybe because the latter holds more US equities which may have weighed it down more recently.

(On a general point, I also noted, understandably, that most growth trusts that I hold had fallen back more than growth & income trusts.).

However, to progress to my main point, during my research, I looked at the 3 month past performance table in the Flexible Investment category, (as that was the period during which most of the volatility and falls have occurred) and was surprised to see a trust I hadn't come across before, namely: JP Morgan Multi-Asset Trust (with the amusing ticker: MATE). Its objectives are stated as:
The Company has an objective of income generation and capital growth, while seeking to maintain lower levels of portfolio volatility than traditional equity portfolios.The Company will seek to achieve its investment objective through a multi-asset strategy, maintaining a high degree of flexibility with respect to asset class, geography and sector of the investments selected for the portfolio.


Its yield is quoted as 4.29% and discount -1.3%

Whilst it very early days yet, as the trust has only shown up on the 3 month tables, and it is still a small trust [under £100M] I like the fact it is using a multi-asset investment strategy and that it seeks to "maintain lower levels of portfolio volatility than traditional equity portfolios". I also like its holdings. So I shall be adding it to my watch list, to see how it fares in the new year, with a view to maybe adding it to my portfolio.

https://citywire.co.uk/funds_insider/in ... undID=4050

https://www.hl.co.uk/shares/shares-sear ... ary-shares

I did also look at Seneca (SIGT) in that same sector, (also a small trust), but was put-off by the fact that it was at a slight premium, that it holds other IT's some of which I already hold in my portfolio and I didn't like its direct holdings.

Parky
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Re: Multi-Asset class trusts & JP Morgan Multi-Asset trust

#189367

Postby Parky » December 26th, 2018, 4:08 pm

MATE was created, I think, as a roll-over vehicle for one of JPM's ZDP split capital companies which was being wound up. Maybe the portfolio was transferred over to the new trust. I haven't checked, as I took the cash for my ZDP shares. I seem to remember the MATE charges being rather steep.

richfool
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Re: Multi-Asset class trusts & JP Morgan Multi-Asset trust

#189369

Postby richfool » December 26th, 2018, 4:27 pm

Parky wrote:MATE was created, I think, as a roll-over vehicle for one of JPM's ZDP split capital companies which was being wound up. Maybe the portfolio was transferred over to the new trust. I haven't checked, as I took the cash for my ZDP shares. I seem to remember the MATE charges being rather steep.

According to the KID the "transaction costs" are: 0.24% and "other costs" are: 0.99%. (total: 1.23%).

It is classed as a "3" in terms of risk.

richfool
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Re: Multi-Asset class trusts & JP Morgan Multi-Asset trust

#189490

Postby richfool » December 27th, 2018, 2:10 pm

I already hold JPGI (JP Morgan Grth & Inc trust) from the Global G&I sector. JPGI predominantly holds equities, and has fallen most in that sector over the last 3 months, understandably as it has a higher exposure to growth and technology stocks. MYI has held up best in terms of capital over the last 3 months from that sector. Thus I am looking at MATE as a broadly based multi-asset class trust with lower volatility.

richfool
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Re: Multi-Asset class trusts & JP Morgan Multi-Asset trust

#195605

Postby richfool » January 22nd, 2019, 3:36 pm

Are there any other views on this new trust MATE (JP Morgan Multi-Asset trust)?

I already hold JPGI in the global growth & inc sector. I tend to see MATE as a less volatile (perhaps lower growth) income focussed trust with exposure to multi assets in the flexible sector.

MaraMan
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Re: Multi-Asset class trusts & JP Morgan Multi-Asset trust

#195794

Postby MaraMan » January 23rd, 2019, 10:30 am

Thanks for posting, I am certainly considering investing in MATE. I am though giving some thought as to whether the trust having large holdings in Pfizer, Merck, Novartis and Roche is a good thing. They are all in the top ten equity holdings, I suppose for their yield. Not convinced yet but will look further into it.

MM

richfool
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Re: Multi-Asset class trusts & JP Morgan Multi-Asset trust

#195826

Postby richfool » January 23rd, 2019, 12:04 pm

MaraMan wrote:Thanks for posting, I am certainly considering investing in MATE. I am though giving some thought as to whether the trust having large holdings in Pfizer, Merck, Novartis and Roche is a good thing. They are all in the top ten equity holdings, I suppose for their yield. Not convinced yet but will look further into it.

MM

Thanks for your thoughts MaraMan.

Yes, I noted that there is an overlap of holdings with several of the main Global G&I and European trusts, but the trust also holds other asset classes which increase its diversity and are intended to reduce volatility. I expect one downside at this stage will be the small size of the trust.

richfool
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Re: Multi-Asset class trusts & JP Morgan Multi-Asset trust

#195844

Postby richfool » January 23rd, 2019, 1:07 pm

Another trust I am aware of - BMPI (BMO Managed Portfolio trust), (formerly F&C Managed Income trust), which has been moved form the Global Growth & Inc sector to the Flexible sector.

BMPI focuses on income (yield: 4.49%) and invests in a range of other IT's to provide diversification, which adds slightly to its charges. It offers exposure to Private Equity, biotech, healthcare, and smaller coys, as well as the normal Global G&I trusts such as JPGI, MYI & HINT. BMPI doesn't talk of reduced volatility or of exposure to foreign currencies or fixed interest, whereas MATE does.

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Re: Multi-Asset class trusts & JP Morgan Multi-Asset trust

#198569

Postby richfool » February 3rd, 2019, 1:32 pm

Do any experts have any thoughts on this:

I have been watching this trust for several weeks now, and I note (from the HL website) that almost all of the recent trades each day are shown as sales (and the prices the trades took place at seem to concur). I.e. no purchases.

I am aware that for every sale there should be a buy, but could it be a case that the trust's management are buying back shares into treasury where there is no normal market buyer? If so, that would represent a concern to me, as a potential buyer, that the trust, which only launched in Feb 2018, is shrinking. The SP seems to be fairly constant, as opposed to falling.

https://www.hl.co.uk/shares/shares-sear ... ary-shares

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Re: Multi-Asset class trusts & JP Morgan Multi-Asset trust

#198599

Postby MaraMan » February 3rd, 2019, 4:33 pm

When looking at these types of trusts that themselves other investment trusts are we not paying twice to hold the underlying shares? For instance BMPI has a large holding in the BB Healthcare Trust, which itself has an on-going charge of 1.36% and BMPI itself is charging 1.07%, giving it seems to me a combined annual charge of 2.43%, which is a lot, or am I missing something here?
Maybe I have got it all wrong and would welcome any wise words from other Lemon Fools.

MM

richfool
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Re: Multi-Asset class trusts & JP Morgan Multi-Asset trust

#198624

Postby richfool » February 3rd, 2019, 5:46 pm

MaraMan wrote:When looking at these types of trusts that themselves other investment trusts are we not paying twice to hold the underlying shares? For instance BMPI has a large holding in the BB Healthcare Trust, which itself has an on-going charge of 1.36% and BMPI itself is charging 1.07%, giving it seems to me a combined annual charge of 2.43%, which is a lot, or am I missing something here?
Maybe I have got it all wrong and would welcome any wise words from other Lemon Fools.

MM

Yes, I am aware of the implications of double charging on BMPI., but am prepared to accept that in certain situations, where it gives me access to several, (if not many) other more specialist trusts, which I neither have the specialist knowledge of, or want to be bothered in maintaining a significant number of small additional separate holdings.

My interest and latest post/question is about the number of apparent sales of MATE, without there appearing to be any "buys". Sorry, I now realise, I should have included the ticker - MATE - or the name of the trust, in my latest/today's post, - though the link was to MATE. The post should have read:
I have been watching this trust (MATE) for several weeks now, and I note (from the HL website) that almost all of the recent trades each day are shown as sales (and the prices the trades took place at seem to concur). I.e. no purchases.

I am aware that for every sale there should be a buy, but could it be a case that the trust's management are buying back shares into treasury where there is no normal market buyer? If so, that would represent a concern to me, as a potential buyer, that the trust, which only launched in Feb 2018, is shrinking. The SP seems to be fairly constant, as opposed to falling.

https://www.hl.co.uk/shares/shares-sear ... ary-shares


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