Miton Global (LON:MIGO), the deep value and special situations fund, is significantly outperforming its benchmark so far in 2021. The ‘Premier Miton UK Value Opportunities’ fund has returned 21.8% year-to-date, exceeding its benchmark, the FTSE All Share index, by 10.1%.
The strong returns come amid a challenging environment for investors, as uncertainty plagues the world economy, and investors are undecided on whether to go with value or growth stocks.
Miton Global’s fund is one of a few in the UK value strategy category to outperform its benchmark. Others include: VT Cape Wrath Focus and Consistent Opportunities Unit Trust.
Premier Miton UK Value Opportunities has found its groove since the pandemic-induced crash in early 2020. Over the past 12 months it has added 56.92%.
Miton Global Opportunities
Founded in 2004, Miton Global Opportunities has evolved to become a deep value and special situations fund. The fund’s aim is to buy discounted investment trusts that have a “catalyst for change”. Miton Global offers a diversified fund with a range of geographical locations and a variety of assets, including equities (34.7%), private equities (24.1%), property (15.8%) and mining (11.8%). The company sets itself apart by avoiding mainstream markets, instead seeking to buy esoteric, overlooked assets.
Buying trusts at a discount
Miton Global Opportunities aims to buy companies where the NAV (net asset value) both exceeds the share price and is growing over time. This can be achieved in a number of ways. For example, an asset class coming back into favour, or a company employing a new leadership team. One of Miton Global’s key strategies is to target the acquisition of assets worth £1 for as little as 70p.
In 2017, Miton Global Opportunities purchased Ecofin Global Utilities & Infrastructure Trust when its NAV exceeded its share price by over 10%. Due to poor performance levels by the management team, a discount had been created. A new management team was then appointed and became a “catalyst for change”, turning around the company’s prospects. New investors were found, narrowing the NAV discount, while the NAV rose by 23%. In January 2020 Miton Global sold and reaped the benefits.