Momentum Multi Asset Value Trust : Annual Report 2020/2021 - Print PDF

Momentum Multi-Asset Value Trust plc

ANNUAL REPORT AND ACCOUNTS 30 APRIL 2021

Refined Value

Momentum Multi-Asset Value Trust plc

(previously Seneca Global Income & Growth Trust plc)

For more information about Momentum Multi-Asset Value Trust plc, visit:

www.momentum.co.uk/mavt

STRATEGIC REPORT

1. Introducing your Manager
2. About Momentum Multi-Asset Value Trust
3. Key Facts
4. Performance
5. Chairman's Statement

1. The Investment Team
2. Refined Value Investing
3. Responsible Investing
4. Manager's Review

1. Ten Largest Holdings

1. Investment Portfolio

1. Investment Spotlight

1. Business Model

GOVERNANCE

34 Your Board

36 Directors' Report

1. Statement of Corporate Governance

1. Audit Committee Report

1. Directors' Remuneration Report

1. Statement of Directors' Responsibilities
2. Independent Auditors' Report

FINANCIAL STATEMENTS

1. Income Statement
2. Balance Sheet
3. Statement of Changes in Equity
4. Cash Flow Statement
5. Notes to the Financial Statements

GENERAL INFORMATION

1. Alternative Performance Measures

1. Glossary of Terms

1. Notice of Annual General Meeting IBC Corporate Information

This document may contain forward-looking statements with respect to the financial condition, results of operations and business of the Company. Such statements involve risk and uncertainty because they relate to future events and circumstances that could cause actual results to differ materially from those expressed or implied by forward-looking statements. The forward-looking statements are based on the Directors' current view and on information known to them at the date of this document. Nothing should be construed as a profit forecast.

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the action you should take, you are recommended to seek your own financial advice from your stockbroker, bank manager, solicitor, accountant or other financial adviser authorised under the Financial Services and Markets Act 2000 (as amended by the Financial Services Act 2012) if you are in the United Kingdom or, if not, from another appropriately authorised financial adviser. If you have sold or otherwise transferred all your ordinary shares in Momentum Multi-Asset Value Trust plc, please forward this document, together with the accompanying document, immediately to the purchaser or transferee,

or to the stockbroker, bank or agent through whom the sale or transfer was effected for transmission to the purchaser or transferee.

STRATEGIC

REPORT

Introducing your Manager:

Momentum Global

Investment Management

Momentum Global Investment Management ('MGIM') acquired Seneca Investment Managers ('SIML') in November 2020. The acquisition has combined two specialist Multi-Asset management businesses, enabling MGIM to grow its presence in the UK retail market whilst providing clients with an enhanced and more comprehensive Value proposition.

Ferdi van Heerden

CEO, MGIM

Ferdi van Heerden, MGIM CEO:

"This is a compelling acquisition for MGIM. The teams complement each other well and have a strong cultural fit. We are pleased to have Momentum Multi-Asset Value Trust plc in our product suite and are committed to expanding our business in the UK."

MGIM'S MULTI-ASSET VALUE APPROACH

MGIM specialises in Multi-Asset investing. This style of investing combines traditional assets (such as equities and bonds)

with less traditional assets (such as property, private equity, infrastructure and specialist financial investment vehicles) that seek to deliver specific long-term investment outcomes.

Our Refined Value approach takes the traditional Value Investing style and refines it to allow its application to a wider range of opportunities across a range of asset classes. This allows us to capitalise on new opportunities as they appear.

WHO IS MGIM?

MGIM was established in the UK in 1998 and focuses on designing, building and managing outcome-based investment solutions, delivered through Multi-Asset portfolios and tailored client solutions. The firm is a wholly owned subsidiary of Momentum Metropolitan Holdings Limited, a large South African insurance and investment business listed on the Johannesburg Stock Exchange. The recent acquisition of SIML creates a truly broad and compelling range of Multi-Asset solutions.

The team of investment specialists is empowered to work collaboratively, and with partners, to identify and implement innovative investment ideas based on its wealth of experience. The team works closely with institutional and adviser partners in the UK and Europe, Asia, the Middle East, South America and South Africa in order to manage solutions that meet the needs of clients.

Richard Ramsay

Chairman, MAVT

Richard Ramsay,Chairman of MAVT:

"Momentum Multi-Asset Value Trust plc is distinctive amongst investment trusts in having a wide range of investable assets each selected with a Value consideration. The investment team managing your Company remains the same, but now has access to enhanced research and support resources."

Momentum Multi-Asset Value Trust plc | Annual Report 2021 | 1

About Momentum Multi-Asset Value Trust plc

Refined Value

Momentum Multi-Asset Value Trust plc ('MAVT' or your 'Company') is designed for investors who wish to combine the benefits of a quarterly income with long-term capital growth.

OUR REFINED VALUE INVESTMENT APPROACH

Value Investing is a process which is traditionally applied solely to equity investment. As a Multi-Asset investor we seek to apply this process across a much wider range of asset classes seeking the best investment opportunities wherever they can be found. We describe this investment process as Refined Value Investing.

We combine direct investment in equities with holdings in a range of funds managed by Value-oriented external managers.

OUR INVESTMENT OBJECTIVE

Over a typical investment cycle, your Company seeks to achieve a total return of at least CPI plus 6% per annum after costs with low volatility and aims to increase the dividends paid to Shareholders at least in line with inflation, through the application of a Multi-Asset Investment Policy.

The Manager defines a typical investment cycle as one which spans 5-10 years, and in which returns from the various asset classes are generally in line with their very long-term average. Low volatility is defined as being lower volatility than that which would be typical of a pure equity portfolio.

OUR HISTORY

		The management company was
Taverners Trust plc was		acquired by Seneca Investment		Your Company changed
established to invest in		Managers and your Company		its name to Momentum
regional breweries and		was renamed Seneca Global		Multi-Asset Value Trust plc
pubs		Income & Growth Trust plc		in March 2021

1996	2005	2014	2020	2021
		Taverners changed its			Seneca Investment
		Investment Objective and			Managers was acquired
		became a Multi-Asset trust,			by Momentum Global
		renamed as Midas Income			Investment Management
		Growth Trust plc			in November of 2020

2 | Momentum Multi-Asset Value Trust plc | Annual Report 2021

Key Facts

185.50p 188.53p £66.6m 6.72p

STRATEGIC REPORT

+42.1%*	+41.6%*	+4.9%*	0.0%*
SHARE PRICE	NET ASSET VALUE	SHAREHOLDERS' FUNDS	DIVIDEND
	PER SHARE		PER SHARE

* For year ended 30 April 2021.

		30 April	30 April
		2021	2020	Change
Total assets1 (£'000)		73,621	70,516	+4.4%
Shareholders' funds (net assets) (£'000)		66,621	63,516	+4.9%
Share price (mid market)		185.50p	130.50p	+42.1%
Net asset value per share (cum income)		188.53p	133.10p	+41.6%
(Discount)/premium2		(1.6)%	(2.0)%
Net gearing1		9.2%	10.2%
Ongoing charges ratio - excluding fund look through costs2		1.62%	1.51%
Ongoing charges ratio - including fund look through costs2		2.34%	2.52%
Dividends and earnings
Revenue return per share		5.48p	6.79p	-19.3%
Dividends per share3		6.72p	6.72p	0.0%
Revenue reserves (£'000)		2,082	2,005	+3.8%
Total returns against comparator indices for periods to 30 April 2021		Cumulative		Since
1 Year	3 Years	5 Years	18.01.20125
MAVT share price total return2	+48.5%	+19.7%	+52.7%	+162.3%
MAVT NAV total return2	+47.9%	+23.6%	+56.3%	+130.8%
Benchmark4	+7.5%	+23.1%	+34.1%	+49.6%
AIC Flexible Investment Sector	+18.8%	+17.9%	+48.5%	+105.7%
FTSE All-Share Index	+25.1%	+7.7%	+39.9%	+90.5%

Source: FTSE Russell®/Morningstar/Momentum Investment Management Limited.

Total return represents the capital return plus the dividends paid in the period, which are assumed to be reinvested at the time that the share price is quoted ex-dividend.

1. A glossary of terms can be found on pages 74 and 75.
2. Alternative Performance Measure - full details can be found on pages 72 and 73.
3. The third interim dividend was paid from distributable capital reserves, all other dividends were paid from revenue.
4. The Benchmark return is calculated using a blended return based on the Benchmark of CPI +6% from 7 July 2017 and previously of LIBOR GBP +3%.
5. Date of change to the current Investment Policy.

Momentum Multi-Asset Value Trust plc | Annual Report 2021 | 3