Momentum Multi Asset Value Trust : Interim Report 2021

Momentum Multi-Asset Value Trust plc

HALF-YEARLY FINANCIAL REPORT

SIX MONTHS ENDED 31 OCTOBER 2021

Refined Value

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 five to ten years, and in which returns from the various asset classes are generally in line with their very long-term averages. Low volatility is defined as being lower volatility than that which would be typical of a pure equity portfolio.

OUR INVESTMENT PROCESS

Strategic Asset Allocation (SAA): Equities, Credit, Specialist Assets, Defensive Assets and Cash and Equivalents

Tactical Asset Allocation (TAA)

Variations from SAA according to bottom up valuations and macro indicators

UK EQUITIES (DIRECT)	OVERSEAS EQUITIES	CREDIT	SPECIALIST ASSETS
Mid cap focus	Benchmark agnostic	TAA drives broad	Heterogeneous asset
Concentrated portfolio	High active share	approach	class
(15-25 holdings)	Niche managers	Capital preservation,	Exposure to real
	yield, value	assets
Low turnover
		Active managers	Focus on security of
		with track records of	income, asset value
		avoiding defaults	and terminal value

DEFENSIVE ASSETS

Non-correlated

Defensive qualities

Used for times of

market stress

Examples include

gold, sovereign bonds,

short ETFs

QUALITY OUTCOMES

Key Facts

189.27p	188.50p	£62.7m		3.36p
+0.4%	+1.6%	-5.9%			0.0%
NET ASSET VALUE	SHARE PRICE	SHAREHOLDERS' FUNDS	DIVIDEND
PER SHARE					PER SHARE
			31 October		30 April		Change
			2021		2021
Total assets (£'000)1, 2			69,703		73,621	-5.3%
Shareholders' funds (net assets) (£'000)2		62,703		66,621	-5.9%
Net asset value per share (cum income)2		189.27p		188.53p	+0.4%
Share price (mid market)2			188.50p		185.50p	+1.6%
Discount			0.4%		1.6%
Dividends per share			3.36p		3.36p
Total returns against comparator indices for periods ended		Cumulative
31 October 2021		6 months	1 Year	3 Years		5 Years
MAVT net asset value		+2.1%	+36.6%		+31.6%	+44.0%
MAVT share price		+3.4%	+38.8%		+31.8%	+43.8%
Benchmark3		+6.2%	+10.1%		+24.5%	+38.2%
AIC Flexible Investment Sector		+5.5%	-2.8%		+5.7%	+35.6%
MSCI UK All Cap Index		+5.3%	+36.3%		+14.9%	+28.2%

Source: MSCI/Morningstar/Momentum Global Investment Management.

1. Total assets less current liabilities (excluding bank debt).
2. Although the net asset value per share and the share price have increased over the Period, total assets and total Shareholders' funds have decreased due to the operation of the Discount Control Mechanism, through which 2.2m shares were bought back during the Period.
3. 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%.

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Performance

Cumulative growth NAV total return (rebased to 100 at 31 October 2016)

160

150

140

130

120

110

100

90

80

70 Oct 16	Oct 17	Oct 18	Oct 19	Oct 20	Oct 21
	MAVT	MSCI UK All Cap	Benchmark#

Source: MSCI/Momentum Global Investment Management

• 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%.

Company premium/(discount), % (based on cum income NAV)

6

4

2

0

-2

-4

-6

-8

Oct 16

Oct 17

Oct 18

Oct 19

Oct 20

Oct 21

Source: Bloomberg

Dividend growth vs CPI (rebased to 100 at 31 October 2016)

120

115

110

105

100

95

90

Oct 16

Oct 17

Oct 18

Oct 19

Oct 20

Oct 21

MAVT CPI

Source: Bloomberg

2 | Momentum Multi-Asset Value Trust plc | Half-Yearly Financial Report 2021

Chairman's Statement

Richard Ramsay

Chairman

OVERVIEW

After the spectacular recovery in stock markets (and your Company in particular) from November 2020, very largely due to the news of vaccine discoveries, it was perhaps to be expected that a period of relative calm would follow. There is an old saying in the investment world that "it is better to travel than to arrive". After the wonderful and lifesaving vaccine news, the practicalities of deployment and the realities of COVID-19's evolution have caused some worries, including very recently with the appearance of the Omicron variant. Its severity is still under investigation making it currently difficult to assess the trajectory of the pandemic. As concerns have ebbed and flowed, so have stock markets too. Overall, the corporate sector has dealt with the re-opening of economies very well, but supply chain bottlenecks and labour shortages in some sectors continue to prove problematic.

		ANNUAL		ANNUALISED
NET ASSET VALUE		VOLATILITY VS	MAINTAINED	YIELD BASED ON
TOTAL RETURN1 VS	SHARE PRICE	MSCI UK ALL CAP	QUARTERLY	188.5P PERIOD-END
BENCHMARK	TOTAL RETURN1	INDEX2	DIVIDEND	SHARE PRICE

+2.1%			9.9%
vs	+3.4%	vs	1.68p	3.6%
per share
+6.2%			13.4%

Over the last five years, your Company has generated a Share Price total return of +43.8% and a NAV total return per share of +44.0%, both comparing favourably with +38.2% from the Benchmark.

1. 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.
2. Source: MSCI/Morningstar/Momentum Global Investment Management.

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