My Assets

Walking to Richmond last Friday, I had time to think about my portfolio and how it could be made less volatile while capturing most of my annual Capital Gains Tax allowance at the same time.

Cast your mind back to 2016 when I bought two investment trusts: Murray International and Pacific Assets. The former is up 20% and that’s after I had enjoyed a 5% yield for four years. The latter, yielding 1%, is up just 6%. Murray have not done as well as my numbers suggest. I was lucky to buy on a dip in late January 2016. In reality Murray are up less than 4% over the last five years and down 21% over the last three years. I fell in love with Pacific Assets because they don’t hug an index, do invest in emerging markets and have an ethical slant. PA have done better than many emerging markets funds but emerging markets have had a hard time. No doubt they will have their moment in the sun. I still have exposure via three Vietnam investment trusts, Aberdeen Asian Smaller Companies, McInroy & Wood Emerging Markets, Utilico Emerging Markets and, in an ISA, Pacific Assets,  so feel entitled to lighten the load.

Then I did something unusual, for me. I sold the 3i Group shares I bought on 16th April this year. I don’t begin to understand what 3i do. I thought it was an investment trust but it’s listed in the FT under “Financial General” and seems to be on a demanding P/E ratio of 38. Up 8% in twelve weeks so I got out while the going was good.

None of this would have happened if I didn’t have an uncontrollable urge to buy more Personal Assets. It is peculiar that “the young” as our grandparents called us, are risk takers and the elderly more cautious. Young, long term savers should be cautious and then, when the’ve made a pile, have a flutter. Well I had a flutter on Marks and Spencer last year and have an unrealised loss of 50%.  My plan had been to make a quick turn and reinvest in Personal Assets!

In case you doubt my credentials as a long term investor here are the banks and brokers I have had accounts with over the last fifty years.

This is the first page of my trading book. Interesting that my first investments were pre-decimalisation. I was fifteen when I made my first trade. The 1970s was a good time to buy equities when inflation was running amok. You may be puzzled by the first entry, UDI, United Distillers of Ireland. It is now part of the LVMH group. I keep this book going because I can look back at great mistakes which embue me with a sense of humility and caution.