Momentum Multi-Asset Value Trust is a multi-asset trust offering global exposure to a diverse range of asset classes and sources of return, across traditional assets such as UK and overseas equities, as well as specialist areas, including infrastructure, real estate, private equity and alternative income.
The trust aims to generate a return of consumer price inflation plus 6% per annum over a typical investment cycle with a combination of income and capital growth. He applies a contrarian, value-oriented approach to stock selection, whereby each investment in the portfolio has greater upside potential than the market anticipates.
Syncona: spotting winners in life sciences
Syncona (LSE: SYNC) is a private equity trust focused on life science companies, which funds early ideas with venture capital, financing growth throughout the clinical trial phase through to the release of their products. The team has a good record of success, with three businesses matured and sold in recent years. Blue Earth Diagnostics, Nightstar Therapeutics and Gyroscope were sold for a return of three times (with a potential of up to 5.1 times), 4.5 times and ten times the initial investment, respectively.
The portfolio consists of eleven companies diversified across a range of therapeutic areas, all at different stages of development. As Syncona-funded products move through clinical trials there will be winners and losers, but we believe the management team has demonstrated the ability to build successful businesses with asymmetric return profiles. . Syncona has many products with significant milestones in clinical trials this year and shares have sold off from a high of 302p in 2018.
Ediston Property Investment: retail parks resist
Ediston Property Investment (LSE: EPIC) has several business parks and is still recovering from the Covid-19 crisis. Vacancy rates rose with retailer bankruptcies and short-term lease adjustments for businesses affected by the pandemic. All this in the context of online retail gaining market share. The net asset value (NAV) has fallen significantly due to falling real estate valuations and falling incomes. Based on a share price of 75.4p, it is trading at a discount to net asset value of 16.4%.
However, outlying business parks are showing resilience. Hybrid working translates into a shift from downtown stores to retail parks. The growth of online transactions is supported by the ability to return inventory to stores or make click-and-collect purchases. All of these factors indicate that stocks offer significant value.
Vistry: a growing builder at a good price
UK property prices have hit a new high and demand remains strong. There is a shortage of housing and the construction of new houses is still below government targets. Vistry (LSE: VTY) is a very attractively valued UK homebuilder that recently announced record sales. Dividends picked up last year and are at an all-time high, offering a well-covered yield of 6.2%.
Following the Grenfell disaster, there is still some uncertainty over the cost to industry as the government seeks to remove all hazardous coatings, but Vistry is confident it is well supplied. The stock price implies a 15% to 20% discount to book value and we believe the company is capable of generating a return on equity of approximately 15%.