Portfolio

At the bottom of this page is a list of my holdings as of September 2020.

I don’t trade very often (typically just a few times a year) and when I do it’s usually to top up a holding I already own.

Market timing isn’t my thing as most evidence I’ve come across seems to show it’s very hard to do on a consistent basis. Therefore, I’m usually fully invested, reinvesting any dividends I receive.

The thematic approach

Most of my portfolio is in global funds but I’m also investing in a few themes that I like: namely UK small-caps, private equity, biotech/healthcare and infrastructure/renewables. I also have a small position in a single venture capital trust (VCT).

My investments are somewhat weighted towards the UK. I reckon about 30% of my underlying holdings are UK-listed businesses, which is much higher than the 5-6% you’d get with a standard global tracker.

Where I have written about a trust or theme, I’ve linked to my most recent article about it in the list of holdings below.

You’ll see that, in addition to investment trusts, I also own an ETF (Vanguard All-World) and a couple of open-ended funds (Lindsell Train Global and Fundsmith Equity).

My wife and children also have some investments that I’ve chosen although they are just global index trackers.

What’s not listed here

I sometimes hold one or two individual company shares but I don’t intend to list them here. They tend to be very small positions.

In terms of other assets, a decent chunk of my net worth consists of residential and commercial property. So I am certainly not 100% exposed to equities. I also keep the usual ’emergency fund’ of cash to cover unexpected expenses.

I don’t own any fixed-income securities (i.e. bonds/gilts) right now. That’s something I am thinking of adding, although it’s not an asset class that’s well served by investment trusts. However, there are a few trusts in the Flexible Investment sector that might suit my purposes.

My strategy

I’ve written about my investing strategy here with an overview of what I am aiming to do and how I plan to do it.

You can find my recent portfolio reviews here, where I track my performance against global and UK index trackers on a quarterly basis.

And I have produced an index page that sorts my blog posts into categories.

My portfolio

None of the trusts listed below, or anywhere else on this site, should be considered as buy, hold or sell recommendations.

I am not registered to give any kind of financial advice and what I think suits my investment purposes and my tolerance for risk may not be appropriate for others.

As the saying goes, you should always do your own research.

I’ve organised my list of holdings into themes:

Global

  • Caledonia Investments (CLDN)
  • Fundsmith Equity (Fund)
  • JPMorgan Global Growth and Income (JGGI)
  • Lindsell Train Global Equity (Fund)
  • Smithson (SSON)
  • RIT Capital Partners (RCP)
  • Vanguard FTSE All-World ETF (VWRL)

UK Smaller Companies

  • Acorn Income Fund (AIF)
  • BlackRock Smaller Companies (BRSC)
  • Henderson Smaller Companies (HSL)

Private Equity

  • HG Capital (HGT)

Infrastructure/Renewables

  • Bluefield Solar Income (BSIF)
  • Gresham House Energy Storage (GRID)
  • HICL Infrastructure (HICL)

Biotech & Healthcare

  • Worldwide Pharmaceutical (WWH)
  • International Biotechnology (IBT)
  • BB Healthcare (BBH)

Venture Capital Trusts

  • Baronsmead Venture Trust (BVT)

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2 Replies to “Portfolio”

  1. Thanks for that excellent review of HG Capital Trust. My investment journey with HGT is very similar. I started investing in the trust in 2008, took up the 2010 subscription offer and continued to add to my holding between 2012 and 2014. Then sold just over half of my shares in 2018 when they were trading on a discount of 6.7% compared with an average 17.7% over the last year. Since then the shares have continued to outperform and occasionally trade at a premium much to my chagrin. Not being well versed in the dark arts of Private Equity I appreciate your efforts explaining complicated things like ‘carried interest’, and the ways of valuing HGT’s investments, but am also very conscious that I have been very lucky with this trust.

    I have had a smaller holding in Harbourvest (HVPE) since 2017. Given the latter’s long-term performance, and its substantial discount relative to HGT, I would be interested in your thoughts on why there is such a wide divergence in discounts and whether HVPE might be a better long-term bet over the next 10 years.

    Thanks again for sharing your thoughts on your investment trust holdings. They are really appreciated.

  2. Thanks Bill.

    HVPE isn’t a trust I’ve looked at in any detail before but I’m aware that HarbourVest has backed some pretty big winners in the past.

    I would guess that investors like the fact HGT is more focused (and where it is focused) whereas it’s harder to see through to the underlying holdings in HVPE. The latter’s discount has been 15-25% for a long time now, so I don’t think its current discount level is unusual and it seems pretty typical for private equity investment trusts, albeit a little harsh given HVPE’s record.

    The fact that HVPE doesn’t pay a dividend and uses US dollars as its base currency might put off some investors as well and maybe result in a slightly higher discount, although both these factors are pretty cosmetic.

    I think a few investors got burnt because of the high level of debt many private equity investments carried into the global financial crisis and so they still treat net asset values across the sector with a little suspicion, especially as the numbers are often only updated fully every 3-6 months.

    What’s more, there’s a long-running debate as to how good private equity returns actually are. Many reports suggest they don’t add any value (above global equities) once costs are taken into account, while other reports reckon they do or that the best returns are concentrated among a small group of super-firms.

    All that said, I wouldn’t be surprised if the discount gap between these two trusts was narrower a decade from now.

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