Brokers Note: Miton Worldwide Growth boldly goes where few dare to invest


#1

Miton Worldwide Growth (LON:MWGT) is an investment trust that invests other investment trusts that are often small, esoteric and which provide access
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#2

It’s not exactly an amazing performer, you’d have done better investing in the FTSE World by a country mile. Yes it’s beaten its benchmark but why on earth is that Libor plus 2%? I don’t get it.

 


#3

I take your point @ronmac but different sorts of investments have their day at one time or another and I wonder if there might be a lot of hidden value in these holdings.

I don’t think there’s a lot to lose because it’s already on a large discount and as the article implies there’s a discount on a discount as high as 40%.

This is certainly a high risk investment fund but I’m tempted to have a little nibble.


#4

I tend to agree with you @jkstowe because if you look at the list of trusts he’s invested in there just has to be a lot of value there the market is just not identifying. I don’t think there’s much to lose here investing in this.

It might do very little for a while but barring another financial crisis I can’t see much cause for a calamitous drawdown in value.

Also, not a major point for me but the fact it’s got a low correlation to other risk assets is a helpful diversifier.


#5

Yes, this is a great diversifier and low volatility can be deemed low risk by some, which is amazing considering the individual holdings. I have some of this for my clients simply for the value that is stored up in the NAV which is also at a discount. Previous price movements have been slow but due to the change of manager a while ago there has been a stock overhang which I believe has now gone. Could be useful for a longer term SIPP investment…