BMO US Equity Buffer Hedged to CAD ETF - July Trust · NEO:ZJUL
BMO US Equity Buffer Hedged to CAD ETF - July Trust — BMO UK High Income Trust — Investor Presentation (July 2020)
17 slides from BMO US Equity Buffer Hedged to CAD ETF - July Trust's investor presentation, July 2020
Slide 1: BMO UK High Income Trust plc
Wf 1015162 UK For retail investors BMO UK High Income Trust plc Philip Webster CFA, Portfolio Manager July 2020
Slide 2: Investment risks
Investment risks Stock market movements may cause the value of investments and the income from them to fall as well as rise and investors may not get back the amount originally invested. The value of your investment is dependent on the supply and demand for the shares of the Investment Trust rather
Slide 3: Annual Report Key Financial Data
BMO UK High Income Trust plc Annual Report Key Financial Data Total Return Revenue and Distributions Past performance should not be seen as an indication of future performance. Sources: BMO UK High Income Trust PLC Annual Report and Financial Statements 31 March 2020 * A unit consists of three Ordin
Slide 4: Strategy and relevance
Strategy and relevance • Active vs Passive management – ongoing shift to passive and very active mandates • Asset allocators have already bought into this polarised view • The Equity Income peer group performance (-12% to -39%) disparity is a clear reminder of the importance of stock picking • This
Slide 5: UK High Income
UK High Income What do you get when you invest in the Fund • High conviction c35 stock concentrated portfolio • Top 10 holdings represent 49% of the fund • Quality, but not at any price • Transitioning away from a traditional mega-cap heavy portfolio - allocating capital to structural rather than cy
Slide 6: Phase 1 of Covid – what have we been doing?
Phase 1 of Covid – what have we been doing? • We have conducted calls with management/investor relations of all names in the portfolio • Our initial work was focused on balance sheet strength (cash/liquidity, debt and covenants) • There are clearly differing degrees of revenue risk in the portfolio
Slide 7: Phase 2 - what have we been buying?
Phase 2 - what have we been buying? Focus of the buying has been around balance sheet support to provide strength to invest and grow. We have also used weakness to improve the quality of the portfolio (competitive dynamics stronger) BUY • Beazley – we supported the capital raising to allow them to u
Slide 8: Benchmark agnostic…
Benchmark agnostic… Sector allocation % (relative to benchmark) Sector performance YTD % (relative to benchmark) Consumer Goods 11.0 Consumer Goods -0.4 Consumer Services 7.3 Consumer Services 2.7 Financials 4.8 Financials 0.5 Technology 1.2 Technology 0.3 Utilities -0.5 Utilities 0.2 Basic Material
Slide 9: Top 10 Relative Equity positions
Top 10 Relative Equity positions Company Relative weight % RELX 4.6 Kerry Group 4.1 British American Tobacco 4.0 Cairn Homes 3.6 Close Brothers Group 3.6 ASOS 3.6 Intermediate Capital Group 3.3 GlaxoSmithKline 3.2 Phoenix Group Holdings 3.0 Pennon Group 2.8 Total 35.9 Source: BMO Global Asset Manage
Slide 10: Dividend
Dividend • We are in unprecedented times when it comes to dividend cuts across the UK market • UK Dividend Monitor data saw 45% of UK companies cancel dividends • They see a best case scenario of a 27% fall to £71.9bn, and a worst case 51% to £48bn • This data was collated in the first quarter. Sinc
Slide 11: Performance as at June 2020
Performance as at 30 June 2020 Cumulative performance (NAV) vs benchmark (GBP net of fees) 25.0 20.0 18.3 15.0 10.2 10.0 Return % 5.0 0.0 -5.0 -4.6 -10.0 -7.6 -9.7 -15.0 -13.0 -20.0 -16.9 -17.5 3 months 6 months 1 year 3 years Fund Benchmark Past performance should not be seen as an indication of fu
Slide 12: Performance
Performance Discrete performance (GBP net of fees) June 19- June 18- June 17- June 16 – June 15 – Percentage growth % June 20 June 19 June 18 June 17 June 16 NAV -9.73 -2.21 4.59 16.28 4.83 Share price -9.73 -2.34 -0.02 23.38 0.80 FTSE All Share -12.99 0.58 8.27 18.41 1.93 Past performance should no
Slide 13: Phase 3 – the recovery?
Phase 3 – the recovery? • The outlook is about as unclear as I have seen it in my career – Phase 1 is behind us and assuming we don’t have a very severe second wave the businesses we own have the capital to survive – Through this phase we have been allocating capital to businesses we believe will be
Slide 14: Dividend progression
Dividend progression Dividend / Capital repayments – by financial year 6.0 Annual Y-O-Y rate Increase FY (p) % 5.0 2014 4.37 2.1% 2015 4.48 2.5% 4.0 2016 4.60 2.7% 2017 4.72 2.6% % 3.0 2018 4.88 3.4% 2019 5.04 3.3% 2.0 2020 5.21 3.4% 1.0 0.0 2013 2014 2015 2016 2017 2018 2019 2020 st Interim 1Series
Slide 15: Glossary
Glossary • Bond: A form of loan paying a generally agreed rate of interest over a fixed term, with the principal paid at maturity. Bonds may be issued by governments or companies. Bonds can generally be traded on the stock market and therefore may trade above or below their issue price • Dividend: I
Slide 16: Disclaimer
Disclaimer This financial promotion is issued for marketing and information purposes only by BMO Global Asset Management in the UK. BMO UK High Income Trust PLC is an investment trust and its Shares are traded on the main market of the London Stock Exchange. English language copies of the key inform
Slide 17: Contact us
Contact us BMO Global Asset Management (EMEA) – Head Office Exchange House Primrose Street London EC2A 2NY Tel: +44 (0) 20 7628 8000 Calls may be recorded. bmogam.com Extensive worldwide investment capabilities • Total focus on clients • Comprehensive range of products and solutions • Defined expert
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