Manchester & London overseas bet pays off

Manchester & London overseas bet pays off – Manchester & London has published results for the year ended 31 July 2017 that show that the fund delivered a 26.9% return on net assets and a 47.9% return to shareholders over a period when its benchmark (MSCI UK Investable Market Index) returned 14.7%. the share price return was aided by a narrowing of the discount from 20.8% to 11.2%. The dividend fell to 9p from 13.36p.

The fund did well against its benchmark but the portfolio bears no relation to the benchmark or to the fund’s AIC UK All cap peer group as it is heavily weighted to overseas stocks.

Technology and technology/disruption orientated investments) delivered around 80% of NAV total return. The five largest holdings in this sector, Alphabet Inc, Facebook Inc, Microsoft Corporation, Alibaba Group Holding Ltd and Tencent Holdings Ltd, accounted for around 50% of the sector return. Other material positive performers included NVIDIA Corporation, salesforce.com Inc, Polar Capital Technology Trust plc, Scottish Mortgage Investment Trust PLC, PayPal Holdings Inc, Altaba Inc, Apple Inc, Adobe Systems Inc, ROBO Global Robotics and Automation GO UCITS ETF and Electronic Arts Inc. There were no material negative contributors.

Consumer investments delivered around 23% of NAV total return. More than 50% of this performance was driven by e-commerce stocks Amazon.com Inc, JD.Com Inc and Priceline Group Inc. Other material positive contributors included Beiersdorf AG, Pernod Ricard SA and Davide Campari-Milano SpA. The only material negative performer was Amplify Snack Brands Inc which struggled after it bought Tyrrells Crisps.

Under healthcare material positive contributors included Align Technology Inc, Worldwide Healthcare Trust PLC, Smith & Nephew plc, Zoetis Inc and Spire Healthcare Group plc (which we sold during the year). There were no material negative contributors.

MNL : Manchester & London overseas bet pays off

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