Thanks Peter, glad you found it interesting.

I do have position limits, but not firm ones. And they tend to vary depending on what sort of trust it is. So with established global trusts, I am happy to have larger amounts. For more specialist trusts and ones with a shorter track record, my limit would be smaller. Sometimes with the themes, I will split a holding over a few trusts with the aim of maybe trimming them down in number over time as I get more familiar with what the key return drivers are.

I also take a view of what I’m likely to add to my portfolio in future. So a position that’s getting a big large might not be topped up for a few years, by which time the position sizes may have readjusted themselves anyway.

Yes, that’s a fair comment about Z scores. I think they can be useful as a starting point but, as you say, comparing a trust to others in its sector or in similar sectors is probably more instructive.

PE and free cash flow yields don’t really work for trust themselves but some of them publish this information for their underlying holdings, which is another way of looking at this.

I think you also get a feel for when trusts are cheap when you have been following them closely for a while. So I tend to focus on that when I am looking to top-up an existing holding. However, I only tend to consider valuation factors after I have selected the area/sector I want to add more to.

Hope that’s useful.

Thanks.

I think the vast majority of KR1’s staking income comes from Polkadot (14% staking yield) and Cosmos (23%) plus a little from Kusama (14%) so that’s running at about £600k a month at the moment, moving up and down a bit as these assets change in price. The rest of the portfolio, barring a few minor assets, isn’t being staked according to its website. I would guess the higher income in January meant a fair bit came from the parachain rewards and that will tend to be lumpier based upon exactly how those are distributed out over time. Be handy to have these two income types broken down but they get absorbed into the monthly NAV anyway.

Many thanks on the KR1 info – I didn’t know that. I found the Income activity very interesting – seems lumpy, but will be good to gradually get a sense of their staking yield (looks like could be between 5-10%). I am down like you, but it’s a small position – was always a ‘just in case’ punt, & still seems a relatively sensible way to get exposure (i.e. managers seem sensible & connected) & one to tuck away for 10 years in hope that it might come round.