Let’s start small in 2019. One of my investing ‘themes’ at the moment is to dedicate a slice of my portfolio (roughly 10% or so) to smaller company investments. I feel that I’m pretty well covered UK-wise, so the next stop is global small-cap funds.
Picking good investments is important but perhaps represents just 20% of the puzzle. Learning how to hold onto the darn things, regardless of what the market throws at you, is arguably the other 80%.
There’s nothing like a complete and utter political shambles (I’m guessing you know the one I mean) to remind us why we need to be globally diversified when it comes to investing. It’s prompted me to dig into my portfolio a little, to see how diversified I truly am.
Independent Investment Trust is one of those funds that I have been aware of for quite a while but never got round to digging into properly. Its shares are up 500% over the last 10 years, so perhaps I need to re-examine my priorities!
The shipping empire turned investment trust Caledonia Investments (CLDN) is currently one of my biggest holdings. It’s one of a few listed funds that is still family controlled and it boasts a 51-year track record of increasing its dividend. What’s more, it’s beaten the UK market by a respectable margin since it became a fully fledged investment vehicle in 1987. Yet it persistently trades at a discount to net assets of around 20%. So, what gives?
RIT Capital Partners (RCP) is one of the largest investment trusts in the UK. At the time of writing, it was the fourth biggest, with a market value of £3.2bn. It’s only outgunned size wise by 3i (£8.7bn), Scottish Mortgage (£7.5bn) and Foreign & Colonial (£3.7bn).
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