Page 41 - DIY Investor Magazine | Issue 34

Many commentators think that may change when the next set of quarterly results roll in and we get a clearer idea of whether higher inflation and rate rises will cause a recession in the US.
Although I’ve toyed with the idea of taking a more defensive position across my portfolio, I’ve decided to leave things pretty much unchanged for the time being. That’s partly due to my investing time frame, which I’m hoping is at least a few decades, and partly due to the fact that I have other assets outside of my portfolio that help lower my overall risk profile.
MY PERFORMANCE BY HOLDING
Here’s how my individual positions did on a share price and NAV basis along with their current rating.
I have it earmarked as primarily a learning exercise although it’s been rather more educational than I would have liked!
My major positions are down between 10 and 20% which is a useful reminder of the importance of position sizing. When I do venture into a new trust or sub-sector of the market, particularly one that has performed well recently, I think it’s important to tread carefully.
I don’t think there’s a great deal to add in respect of the individual trusts I hold but here’s a quick summary:
Holding
Worldwide Healthcare
Vanguard All-World ETF
Share Price H1
-12.50%
-10.70%
Net Asset Premium Value H1 (discount)
-6.10% -7.60%
– –
-31.20% -12.10%
-5.60% -8.40%
– –
-68.30% -31.90%
-32.30% -16.60%
-9.50% -0.90%
-8.00% -3.30%
7.70% 5.60%
0.80% -24.70%
-30.20% -15.10%
16.10% 19.10%
– –
6.70% 3.20%
-29.00% -15.50%
-18.50% -4.10%
-9.00% -4.20%
• •
•
• •
•
•
I’m not aware of any style or manager changes across my holdings so each trust appears to be keeping to the same basic strategy.
The premium at Gresham House Energy Storage
should fall to single digits when its next quarterly NAV is announced, based on what they’ve signalled. The trust has big expansion plans for the next couple of years
and still seems to be executing very well although I still consider it a riskier proposition than other renewable trusts. Bluefield has raised more money, hence its relatively small premium, although I suspect investors are probably also waiting to see how its diversification into wind and energy storage plays out. There could also be some lingering concerns about whether it might get caught by energy windfall taxes.
HICL is still struggling to increase its dividend, keeping it flat for yet another year, but its NAV has been boosted by inflation-linked revenues.
Lindsell Train is beating Fundsmith (due to less tech) but Smithson’s highly-rated investments have taken a real beating and it’s begun to buy back its shares now that it’s trading at a notable discount.
Bellevue’s bias towards small- and mid-caps has meant it’s been the worst performer of my three biotech/ healthcare trusts. Manager Paul Major still believes this part of the industry is best placed for the long term and the trust has increased its gearing level a bit so that’s something I plan to keep an eye on.
JPMorgan Global Growth & Income’s merger with Scottish Investment Trust is taking a little longer than expected but should complete soon. Its usual premium rating of a few per cent seems to have disappeared in the past month but, even though its 30 June NAV was down compared to last year, it’s planning to increase its dividend slightly rather than reducing it so that remains at a fixed level of 4% of its 30 June NAV.
Smithson -41.30%
RIT Capital Partners -12.10%
Lindsell Train Global -9.50%
KR1 -73.90%
Keystone Positive Change
JPMorgan Global Growth & Income
-42.60%
-13.40%
International -11.40% Biotechnology
HICL Infrastructure -0.10%
HgCapital -20.40%
Henderson Smaller Companies
Gresham House Energy Storage
Fundsmith Equity
Bluefield Solar Income
BlackRock Smaller Companies
Bellevue Healthcare
Baronsmead Venture
-34.10%
23.30%
-16.50%
8.80%
-38.20%
-23.80%
-6.90%
The two renewable trusts have done best while my infrastructure fund is flat for the year to date. All three are fairly small position sizes unfortunately although that’s also the case for my worst performers like Smithson, Keystone, and the two UK smaller-company trusts.
KR1 is a tiny position for me so I’m happy to let that ride despite the very heavy losses incurred to date.
41
DIY Investor Magazine · July 2022