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Manchester & London Share Discussion Threads
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|IMO Questor has really excelled himself this time, by presenting MNL as Scottish Mortgage at a 20% discount! What a crazy jump in SP! The discount will soon have disappeared.|
|I bought 1 month ago immediately following Simon Thompson's tip and my investment is 19% UP. So thank you Simon it's more than paid for my IC subscription. I liked the sound of a couple of his other 2017 tips and they are also progressing well.|
|This is the Questor piece
2 MARCH 2017 • 6:20AM
This newspaper’s Money sections have long been admirers of the Scottish Mortgage investment trust, which has just won promotion to the FTSE 100 index.
However, the trust, which invests heavily in technology firms such as Amazon and Facebook, is disqualified from “bargain”; status because it tends to trade at a premium. Today we look at a trust with some similarities and the added attraction of a 21pc discount.
The Manchester & London trust is far smaller than Scottish Mortgage (it has a market value of about £66m, against the latter’s £4.7bn) but shares its liking for American technology giants.
Both have stakes in Amazon, for example: M&L has 7.6pc of its money in the online retailer, which is its second-largest holding; for Scottish Mortgage the figure is 9.9pc and Amazon is the No 1 holding. Facebook and Alphabet, Google’s parent company, also feature in the top 10 holdings of both trusts.
This is not to say that the two portfolios are identical. Scottish Mortgage has significant stakes in several Chinese internet firms, including Baidu, the search engine, and Tencent, the diversified online services group. Overall it has 18.8pc of its assets in China, whereas M&L’s exposure is minimal at 1pc.
The smaller trust also has more of its money in big names outside technology, principally in the consumer and healthcare sectors; holdings include Heineken, Pernod Ricard and Campari, as well as GlaxoSmithKline, AstraZeneca and Roche.
More unusually, its holdings include other investment trusts, such as Polar Capital Technology, Worldwide Healthcare, the SME Loan Fund – and Scottish Mortgage itself. M&L also tends to have considerably fewer holdings than Scottish Mortgage.
The trust has not always had this composition. When a new manager, Mark Sheppard, was appointed about three years ago he took a fresh look at the likely sources of global growth and adopted the current key themes of technology, consumer goods and healthcare and pharmaceuticals. He considered these sectors to have good performance records and the momentum to continue, along with high levels of return on capital and strong growth potential.
“Mr Sheppard favours companies that are able to disrupt traditional business models, take advantage of economies of scale and achieve exponential growth as a result of technology,” analysts at Winterflood, the stockbroker, wrote this week. “The prospects for the healthcare and consumer goods sectors are viewed as positive because of ageing populations and rising incomes.”
They added that the portfolio had no exposure to mining, oil and gas or banks, and low exposure to cyclical stocks. This has resulted in the fund outperforming the FTSE All Share index over the past three years (a 36pc gain in net asset value with income reinvested, versus 20pc for the index), while exhibiting lower volatility.
One quirk is that the manager owns more than 60pc of the trust’s shares, which Winterflood said represented “a strong alignment of interest” with other investors.
The broker added: “After a difficult period, Manchester & London has seen a considerable turnaround in recent years, in terms of both its performance and its portfolio. Mark Sheppard has adopted a momentum growth investment approach that has seen him back a number of leading global disruptive companies.
“Conversely, he has been prepared to be pragmatic, exiting ideas that have not met expectations, such as peer-to-peer lending.”
In the light of this, it’s hard to see why the shares trade at a 21pc discount. “Given the turnaround in performance, we believe that the fund’s discount could materially narrow from its current level,” Winterflood said.
Questor says: buy|
|Apologies 888ICB if I am commenting on the same Telegraph point as you but
the article in today's Telegraph is not dated so may have been the same as that referred to in your post yesterday!|
|Good write up in today's Telegraph about inter alia, MNL's holding in Amazon.|
|An 8.59% rise today no doubt on the back of the US market going to an all time high on the back of Trumps speech. Simon Thompson of the IC tipped it and today the Telegraphs Questor column pointed out its largest holding is Amazon and MNL trades at a 21% discount to NAV. I invested on Simons tip and am very pleased with progress so far.|
|Thanks to Questor for the rise!!|
|The case made by Simon Thompson makes good reading. This is an opportunity to buy into good investments such as Apple and other major tech stocks at a substantial 21% discount plus it is also into healthcare and Pharma. I think this share has been below the radar and perhaps Simons tip will bring it to a wider audience. It has persuaded me to invest which I did on Friday.|
|Simon Thompson Bargain Portfolio share|
|Yes, I noticed that but a little late to take any action. I remain long and now hope for the discount to narrow.|
|This one has had a very disappointing performance of late, largely due to profit warnings at it's biggest holding PZ Cussons.|
|They have just bought out two I.T.s,there is not a lot of information on offer,no wonder it has a poor following.Must dig a little methinks.|
|PZC, its biggest holding is romping away|
|Idealing does not recognised this EPIC|
|THE MANCHESTER AND LONDON INVESTMENT TRUST PLC. How's that for excitement?
OK - it sounds, well.........worthy. That name gives off the impression of stolid Victorian virtue, oak panelled offices, clerks with starched cuffs and quill pens- good old-fashioned Northern values. It's so boring and dull and obscure no one's even started a thread on it - until now.But just look at the long term chart - it's as predictable as a flight of stairs.
Bear in mind though that the Trust stayed 25% liquid for part of the year and the preference shares are about to be converted which will have some impact on the share prices. But long term it has a solid track record . .
...And think what you'll save in not needing to buy Horlicks anymore.|
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