Montanaro Uk Smaller Com... Share Discussion Threads

[noiseboy] 13/11/2019 01:46

Who is MNO?!

[tonytyke] 08/11/2019 17:18

The share price seems to be moving upwards of late and there appears to be some increased volumes traded since around mid Oct. Still well discounted with a NAV of 135.47p.

John Baron highlighting again in his investment trust portfolio section today, in the IC, that some outperformance in UK smaller caps is due. MNO highlighted as one of the trusts in his portfolios.

[mellotrustsandfunds] 01/2/2019 13:40

Montanaro are excited to announce they will be exhibiting and presenting at the Mello Investment Trusts and Funds Event on Wednesday 15th May 2019 at the Clayton, Chiswick.

George Cooke(Manager of the European Smaller Companies Trust) is a keynote speaker. Other Montanaro team members will be available to discuss investment management.

The Mello Event will be jam packed full of investment trusts and funds presenting and exhibiting. Delegates will have the opportunity to intimately research the holdings and strategies used by fund managers. And find out about future opportunities in varying sectors and geographies around the world. There will be lots of top quality speakers and panel sessions to entertain and inform our Mello investor community.

www.mellotrustsandfunds.com

See you there.

[topvest] 10/9/2018 21:46

I guess, its just about sustainable, but top end with a near 5% yield. Think they would have been better at 3-4%.

[wirralowl] 10/9/2018 10:14

I like the idea in principle, but wonder if its sustainable..?

From their 26/7 RNS statement:

"The Company's dividends will be funded out of capital reserves to the extent that current year revenue and revenue reserves are insufficient."

[speedsgh] 07/9/2018 13:27

from IC John Baron's Investment Trust Portfolio...



Portfolio changes

During the first half of the month, Chelverton UK Dividend Trust (SDV) was sold in the Growth portfolio, as was Acorn Income Fund (AIF) in the Income, and both were replaced by Montanaro UK Smaller Companies (MTU)...

...MTU had drifted to an 18 per cent discount when bought courtesy of lacklustre performance over recent years. Speaking with Charles Montanaro, a number of factors now warranted support. These include an investment process focused on choosing quality companies, the return of Charles as the lead fund manager, a reassessment of the portfolio including an increased emphasis on Alternative Investment Market (Aim) stocks, and the introduction of a new dividend policy equating to a yield exceeding 4.8 per cent when bought...

[topvest] 20/7/2018 18:39

I’m not really that bothered with the discount at this level. The trust is well run and is good for a 10% total return per annum. Happy to hold and I don’t think your options would do much long term other than to reduce the size of the trust to a level that was uneconomic.

[biggest bill] 20/7/2018 10:04

The company is taking no steps whatsoever to address the huge discount (over 21% today) at which mtu trades. This is the biggest discount in the smaller companies sector. The discounts of other smaller companies have fallen significantly over the last 18 months but mtu's discount has stayed stubbornly high.
The company has a number of options to reduce the discount:
1. Convert to a unit trust or oeic.
2. A tender offer to buy back some shares at say a 5% discount to nav. This will increase the nav for the remaining shares and allow investors to get out at a decent price.
3. Announce that they will set a maxiumum target for the discount of say 10% by buying shares in the market and cancelling them. This will also increase the nav for the remaining shares.
If you think the company will take any of these steps, the shares are a raging buy. The shares are probably a buy anyway if the discount shrinks close to the average for smaller company investment trusts. This might actually happen anyway because of reversion to the mean.

[cordwainer] 16/2/2017 17:15

woah, shocker, 5.5% in a day. Glad I got into this end of December .. was wondering whether the discount would last forever.

[biggest bill] 16/2/2017 12:59

I see that Questor in the Telegraph has tipped this trust today. He says that the current discount is far too large and can't last. There is a continuation vote next year and he expects the discount to gradually narrow up to the vote.

[cordwainer] 03/1/2017 22:10

topvest, I would prefer 5% initial max, up to 8% max weighting per stock with outperformance, with max 60% weighting for top 10. Suspect current policy results in a higher OCF ?

[topvest] 03/1/2017 19:08

They do trim back excessive holdings above 4% I believe through top-slicing. A cautious approach, but suspect if they set at 10% they would do much better.

[cordwainer] 03/1/2017 17:25

Recent bought in, based almost entirely on the heavy discount (almost 23%). I'm doubting that the whole portfolio can be so pessimistic all through 2017 unless every last holding is an exporter to the EU. And maybe the uncertainties ahead will bring MTU's stock-picking style back in favour.

RE: 4% restriction - please note this is only a limit for initial investments, it does not necessarily mean not running its winners. On the other hand it could be argued that the current top 10 holdings having a weighting of between 2.6% and 3.6% doesn't exude any particular confidence of conviction.

[biggest bill] 24/6/2016 10:02

The discount is now up to 20% which is much higher than the average small company investment trust. Given the long term record, this discount is absurd; I have increased my exposure here very heavily.
Topvest, I can understand why they prefer to restrict individual holdings to 4% or so; they are running a pretty concentrated portfolio of only 47 companies.

[topvest] 11/7/2014 21:37

Yes, good trust this one. I agree with all their policy except restricting investments to 4% which seems a classic "not running your winners" - looks like that policy came from Tweedy Browne the classic value investing firm. 10% maybe, but 4% no!

[vraic] 11/7/2014 16:55

New Annual Report and Accounts just published. AGM will be 30/7/14.
Dividend 7 1/2 pence to be paid 13/8/14.shares trade xd.
NAV current £5.2799 nice discount, report reads well.

[topvest] 21/5/2014 11:55

Added a few of these on weakness and given the 10% discount. A good long term record that should continue.

[topvest] 21/5/2014 11:55

I thought I would start a new thread for this investment trust, given the existing threads don't have charts etc.

[praipus] 31/5/2012 22:06

Just noticed that Newton Investment Management have a holding here. I'm tracking the rest of their holdings on the WAM thread.

[investinggarden] 12/1/2010 09:49

Dan Harlow to leave Montanaro

[samg99] 18/11/2005 10:24

Well this thread is all very well and good, but it's a trifle over-active for my taste ;-).

[boyse] 16/2/2003 14:07

Section 4 could Help