Stock Analysis & Valuation CT Global Managed Portfolio Income Ord (CMPI.L)

• Previous Close: £126.50
• Sector Valuation Confidence Level: High

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	77.53	-39
Intrinsic value (DCF)	49.44	-61
Graham-Dodd Method	1.33	-99
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

CT Global Managed Portfolio Income Ord (CMPI.L) is a London-listed closed-end investment trust focused on delivering income and capital growth to shareholders through diversified portfolios. Managed by Columbia Threadneedle Investments, the trust operates through two segments: Income Portfolio and Growth Portfolio, targeting stable returns and long-term appreciation. Headquartered in London, the trust invests primarily in UK and global equities, offering investors exposure to a professionally managed, risk-adjusted asset pool. As part of the Financial Services sector, CMPI.L caters to income-seeking investors, leveraging Columbia Threadneedle’s expertise in asset management. With a market cap of approximately £101.2 million, the trust provides a dividend yield of 7.55p per share, appealing to those prioritizing steady income streams. Its low beta (0.73) suggests relative stability compared to broader equity markets, making it a potential defensive play in volatile conditions.

Investment Summary

CT Global Managed Portfolio Income Ord presents a compelling option for income-focused investors, offering a robust dividend yield of 7.55p per share and a diversified equity portfolio. The trust’s low beta indicates lower volatility relative to the market, appealing to risk-averse investors. However, its reliance on equity markets exposes it to macroeconomic risks, including interest rate fluctuations and market downturns. The trust’s net income of £14.4 million and operating cash flow of £3.06 million demonstrate financial stability, but its £7 million debt load warrants monitoring. While the trust benefits from Columbia Threadneedle’s management expertise, its performance remains tied to broader equity trends. Investors should weigh its income-generating potential against sector-specific risks and market cyclicality.

Competitive Analysis

CT Global Managed Portfolio Income Ord competes in the UK-focused income trust space, where its primary advantage lies in Columbia Threadneedle’s asset management capabilities and a diversified portfolio strategy. The trust’s dual-segment approach (Income and Growth) allows it to balance yield generation with capital appreciation, differentiating it from pure income or growth-focused peers. However, its smaller market cap (£101.2 million) limits economies of scale compared to larger rivals like City of London Investment Trust (CTY.L) or Merchants Trust (MRCH.L). The trust’s low beta suggests defensive positioning, but its performance is still subject to equity market risks. Its dividend yield is competitive, though sustainability depends on portfolio returns and management efficiency. While the trust’s closed-end structure provides stability, it trades at a discount/premium to NAV like peers, adding valuation complexity. Overall, CMPI.L is a mid-tier player in the UK income trust market, suited for investors seeking managed diversification but facing stiff competition from larger, more established trusts.

Major Competitors

• City of London Investment Trust (CTY.L): City of London Investment Trust (CTY.L) is a larger, more established UK income trust with a strong dividend track record, having raised payouts for over 50 consecutive years. Its £2+ billion market cap provides scale advantages, but its focus on UK blue-chips limits geographic diversification compared to CMPI.L’s global approach. CTY.L’s lower yield (around 5%) may appeal to conservative investors, while CMPI.L offers higher income potential.
• Merchants Trust (MRCH.L): Merchants Trust (MRCH.L) is another UK income-focused rival with a higher dividend yield (~6%) and a value-oriented strategy. Its larger AUM provides cost efficiencies, but its concentrated UK equity portfolio lacks the global diversification of CMPI.L. MRCH.L’s higher leverage (20%+) amplifies returns but also risk, whereas CMPI.L’s £7M debt is more conservative.
• JPMorgan Global Growth & Income (JPGI.L): JPMorgan Global Growth & Income (JPGI.L) combines income and growth like CMPI.L but with a stronger global equity mandate and JPMorgan’s institutional backing. Its quarterly dividend policy and NAV outperformance are strengths, though its yield (~4%) is lower. JPGI.L’s larger scale and active management may attract investors seeking global exposure over CMPI.L’s UK-centric approach.
• Murray International Trust (MYI.L): Murray International Trust (MYI.L) emphasizes global income with a defensive tilt, similar to CMPI.L’s diversification but with a higher allocation to bonds and emerging markets. Its yield (~5%) is lower, but its long-term performance and Aberdeen Standard’s management are competitive. MYI.L’s hybrid equity-bond strategy offers less pure equity upside than CMPI.L.