MIGO Opportunities Trust Plc – Outlook for 2022

Charlotte Cuthbertson

MIGO Opportunities Trust Plc

2021 was an interesting year with many highs and lows within both markets and our portfolio. We enjoyed the great reopening trade earlier in the year but now face some stagnation as the world struggles to return to normal, coping with enormous disruption in supply chains and energy.

Looking forward, all eyes are on inflation numbers and interest rates. Many central banks around the world have signposted that they intend to begin tightening financial conditions in 2022. A taper tantrum is certainly on the cards for 2022 and we anticipate some rocky markets as investors get to grips with the fact that the incredible monetary and fiscal stimulus of the past two years must start to be withdrawn. In terms of our own portfolio, we are trimming where we retain exposure to highly rated companies via trusts such as Third Point and Chrysalis.

In the first half of 2021, we found ourselves selling down many of our holdings as discounts tightened and parts of the trust market began to look very frothy. More recently, however, we are seeing this reverse as areas such as UK micro-cap and Biotech return to ratings we saw in Q4 2018 when we bought into these areas. Bull markets are great, but now we are beginning to see where we can recycle our profits, reducing our cash pile.

We have frequently commented about the increase in alternative asset classes within the trust sector. Last year we hit a milestone as equity focussed trusts became the minority for the first time in the modern era. The raft of alternative issuances looks set to continue in the New Year and we believe we are primed to take advantage of this trend. We traditionally make money when trusts move back into favour. We are always looking for those opportunities where we can see both recovery in the portfolio and a narrowing of the discount as investors begin to flock back as performance improves. With a vast increase in the range of asset classes available, this creates ever more mispricing situations for us to exploit.

Despite the probability that 2022 may prove to be a difficult and turbulent year in markets, we remain optimistic that this will throw up plenty of opportunities and that we are in the right place to take advantage of likely volatility.

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Risks

The value of investments may fluctuate which will cause fund prices to fall as well as rise and investors may not get back the original amount invested. Reference to any particular investment does not constitute a recommendation to buy or sell the investment.

For trusts investing globally, currency exchange rate fluctuations may have a positive or negative impact on the value of your investment.

Future forecasts are not reliable indicators of future returns.

IMPORTANT INFORMATION:

For Investment Professionals only. No other persons should rely on any information contained in this document.

Whilst every effort has been made to ensure the accuracy of the information contained within this document, we regret that we cannot accept responsibility for any omissions or errors. The information given and opinions expressed are subject to change and should not be interpreted as investment advice. Reference to any particular stock or investment does not constitute a recommendation to buy or sell the stock / investment.

All data is sourced to Premier Miton unless otherwise stated. Persons who do not have professional experience in matters relating to investments should not rely on the content of this document.For your protection, calls may be monitored and recorded for training and quality assurance purposes.

For your protection, calls may be monitored and recorded for training and quality assurance purposes.

A free, English language copy of the trust’s full Prospectus, the Key Information Document and Pre-investment Disclosure Document are available on the Premier Miton website, or you can request copies by calling us on 01483 306090.

Financial Promotion issued by Premier Miton Investors. Premier Portfolio Managers Limited is registered in England no. 01235867. Premier Fund Managers Limited is registered in England no. 02274227. Both companies are authorised and regulated by the Financial Conduct Authority and are members of the ‘Premier Miton Investors’ marketing group and subsidiaries of Premier Miton Group plc (registered in England no. 06306664). Registered office: Eastgate Court, High Street, Guildford, Surrey GU1 3DE.

005366/200122

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This section of the website and the content it contains is for retail clients only and by persons who are resident in the United Kingdom [who are not US persons]. Professional advisers should refer to the Professional Advisers site.

The content of the pages of this website is for your general information only. It, and the products and services described within it, are subject to change without notice. We shall not be liable to you, or any third party, for any amendment, modification, suspension or discontinuance of any product or service described on our website. Neither we, nor any third parties, provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or appropriateness of the information and materials made available on this website.

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The information contained on this website does not constitute an offer or solicitation to sell or purchase shares in the funds or portfolios or to provide you with other products or services. Any application or investment must only be made on the basis of the relevant documentation of the investment, such as, for example, terms and conditions. The information on this website does not constitute any investment, tax, legal or other advice. Persons who do not have professional experience in matters relating to investments should always consult with an independent financial adviser before making an investment decision. Any opinion expressed on individual funds, services or products represent the views of the individual at the time of preparation and should not be interpreted as a personal recommendation to buy or sell or otherwise trade all or any of the investments that may be referred to.

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The content of the pages of this website is for your general information and use only. It, and the products and services described within it, are subject to change without notice. We shall not be liable to you, or any third party, for any amendment, modification, suspension or discontinuance of any product or service described on our website. Neither we, nor any third parties, provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or appropriateness of the information and materials made available on this website.

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