Material produced by Kepler Trust Intelligence should be considered as factual information only and not an indication as to the desirability or appropriateness of investing in the security discussed.
Please see the important information by following this link or at the bottom of the page.
The principal aim of Caledonia is to grow capital and income over the long term, while managing the risk and volatility of the returns. Consistent, dependable dividend growth has been a stand out characteristic for the trust and has led to its inclusion in the AIC dividend heroes after 50 consecutive years dividend growth.
A key characteristic of the trust is the vast business network that the internal team at Caledonia has established. They see these contacts as a vital part of identifying opportunities, particularly in the unquoted markets. Additionally, their long-term reputation as a supportive and constructive long-term investor enables the team to further develop this network.
The portfolio is comprised of four segregated pools, each with different managers and mandates. The Unquoted and Fund pools are where the majority of the returns are expected to come from, both with forecasted returns ranging between 12-15% per annum. The Income pool and the Quoted pool help grow the dividend and feature listed companies, which offer added liquidity to compensate for the unquoted companies.
The trust's largest geographical weighting is towards the UK, which made up 33% of the portfolio as of the most recent factsheet (September 2018). North America (27%) and Europe (20%), also play important roles in the make-up of the portfolio. The trust offers lesser levels of exposure to Asia (14%) and holds 6% cash.
Caledonia uses the FTSE All Share as its performance benchmark, and over the past five years has outperformed delivering NAV returns of 55.7%. However, in comparison to the MSCI ACWI and the AIC Global peer group, the trust has struggled to keep up. This pattern is also seen over more recent times, when the trust has outperformed the benchmark but again underperformed the MSCI ACWI and the AIC Global peer group.
Currently the trust is on a significant discount to NAV of around 25%. This is the widest discount in the AIC Global peer group.
Kepler Trust Intelligence is a website owned and managed by Kepler Partners LLP. Material produced by Kepler Trust Intelligence should be considered a marketing communication, and is not independent research.
This report has been issued by Kepler Partners LLP for communication only to eligible counterparties and professional clients as defined by the Financial Conduct Authority. Its contents are not directed at, are not to be communicated to, may not be suitable for and must not be relied on by retail clients.
The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. Persons who access this information are required to inform themselves and to comply with any such restrictions.
The information contained herein has not been prepared in accordance with legal requirements designed to promote the independence of investment research. The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice.
This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only.
Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm’s internal rules.
Past performance is not necessarily a guide to the future. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. Independent financial advice should be taken before entering into any financial transaction. This website is published solely for informational purposes and has no regard to the specific investment objectives, financial situation or particular needs of any person.
PLEASE SEE ALSO OUR TERMS AND CONDITIONS
A copy of the firm’s conflict of interest policy is available on request.
Kepler Partners LLP is a limited liability partnership registered in England and Wales at 9/10 Savile Row, London W1S 3PF with registered number OC334771.
Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority.
Chairman of International Biotechnology Trust, John Aston, explains how his unusual background in both biotechnology and banking come together on the trust...
Mid Wynd International Investment Trust's Sim Edelsten thinks not...
Three months in, we check up on the progress of our discount opportunities portfolio...
Currently one of the financial world's most unloved regions, we look at the sectors that are unique to Europe and how the persistent pessimism has presented attractive opportunities…