Martin Currie Asia Unconstrained Trust (MCP) aims to generate returns at least in-line with Asia ex-Japan nominal GDP growth. It follows a bottom-up approach to stock-picking and uses detailed ‘forensic accounting’ assessments to build a high-conviction portfolio of 20 to 30 stocks, with a long-term view. The trust has persistently traded at a deep discount, but there is scope for this to narrow following a recent change in the dividend policy, which has lifted its yield to 4.0%, while maintaining the investment strategy. MCP’s yield now compares favourably against peers and could attract new interest from income focused investors.
