Caledonia Investments (LSE: CLDN), one of the components of the MoneyWeek investment trust, saw a fall in the fund’s discount relative to its net asset value (NAV, the value of the underlying portfolio) in April this year.
Caledonia’s net asset total return as of 30 April was 1.3% “return was driven by the continued weakening of Sterling against the US dollar and positive fund valuation updates, partially offset by price reductions impacting a number of our Quoted Equity holdings”.
The trust operates three investment pools – quoted equity, private capital, and funds, which comprise 29%, 28% and 29% of the trust’s NAV respectively.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Caledonia traded at a discount of 27% relative to its NAV, a smaller discount compared to almost 30% the previous month.
It invested £12m during April and realised £19m, leaving it with net cash of £349m at the end of the month.
The top four largest holdings were unchanged in terms of ranking. Seven Investment Management remained the largest holding at £173.9m, investment company Cobehold accounted for £158.3m, and family office Stonehage Fleming represented £140.1m.
Pubs and restaurants business Liberation Group was the fourth biggest holding representing £135.7m. Funds of funds business Aberdeen US PE funds replaced lens manufacturer Cooke Optics as fifth biggest holding. The former represents £123.1m.
Meanwhile, Cooke Optics slipped from fifth place to sixth place representing £117.9m.
The fund retained its rankings from the previous month for seventh, eighth, ninth and tenth positions.
Funds of funds company Axiom Asia Funds was the seventh biggest holding, representing 92.2m. Software company Microsoft came in eighth place with £59m of the fund.
Ventilation products business Watsco was the ninth biggest holding, representing £57.1m. Software company Oracle came in tenth spot, representing £54.6m.
In the year to 28 February, the trust comfortably outperformed its benchmark, the FTSE All-Share’s total return, posting a return of 28.8% compared to 8.7% for the benchmark index.
Will Wyatt, the trust’s outgoing chief executive, who will retire in July, said in Caledonia’s latest half-year report: “The portfolio has continued to perform well during the first half of the year, delivering against our aims and extending our healthy long-term performance track record. All three investment pools have generated strong positive returns with the underlying companies and funds showing good levels of growth as the world economy continues to recover from the Covid-19 pandemic.”
-
Six out of 10 retirees who accessed a pension didn’t use Pension Wise - how does the guidance service work?Many pension savers don’t bother using the free government-backed service Pension Wise. So, how does it work, and could it be useful for you?
-
UK-EU trade deal: Britain to get a £9bn boost to the economy by 2040The government’s agreement with the EU follows on from separate deals with India and the United States. Will it breathe life into the UK economy?
-
Halifax: House price slump continues as prices slide for the sixth consecutive monthUK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
-
Pension savers turn to gold investmentsInvestors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
-
Where to find the best returns from student accommodationStudent accommodation can be a lucrative investment if you know where to look.
-
The world’s best bargain stocksSearching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
-
Revealed: the cheapest cities to own a home in BritainNew research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
-
UK recession: How to protect your portfolioAs the UK recession is confirmed, we look at ways to protect your wealth.
-
Buy-to-let returns fall 59% amid higher mortgage ratesBuy-to-let returns are slumping as the cost of borrowing spirals.
