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.
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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.”
Saloni is a web writer for MoneyWeek focusing on personal finance and global financial markets. Her work has appeared in FTAdviser (part of the Financial Times), Business Insider and City A.M, among other publications. She holds a masters in international journalism from City, University of London.
Follow her on Twitter at @sardana_saloni
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