Caledonia Investments Update: Strong Equity Performance Leads to Higher Net Assets

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Caledonia Investments (LSE: CLDN), one component of the MoneyWeek investment fund portfolio, had a strong half-year as of September 30 due to strength in global equity markets.

The fund’s net asset value (NAV – the value of the underlying portfolio) rose 16.1%, the trust said in its semi-annual report.

The fund invests through three channels: Caledonia Quoted Equity, Caledonia Funds and Caledonia Private Capital. “The listed equity portfolio has benefited from the strength of the public equity markets which continue to rely on the support provided by central banks, producing a return of 13.5%,” the trust said.

The performance of the listed equity portfolio was driven by good returns across a wide range of sectors, with five positions in particular – Oracle, Thermo Fisher, Spirax Sarco, Croda and Big Yellow – accounting for over 25% of the return on the market. during the period.

Caledonia Private Capital generated a return of 20.1%, driven by “healthy returns from all companies owned and the positive impact of the sale of Deep Sea Electronics for cash proceeds of £ 242million”, said the trust.

At the same time, Caledonia Funds posted a return of 24.2%, helped by significant growth in valuations in the private equity markets.

Will Wyatt, outgoing CEO of the trust, who announced his retirement in July 2022, said: track record. All three investment pools generated strong positive returns, with the companies and underlying funds showing good levels of growth as the global economy continues to recover from the Covid-19 pandemic. “

Wyatt will be replaced by Mat Masters, who currently serves as head of the Caledonia Quoted Equity fund.

Seven Investment Management, an investment management firm, remained the fund’s largest holding in November, accounting for the fund’s £ 138.8million. BioAgilytix, a bioanalysis company, which was previously not among the trust’s top ten holdings, has become the second largest holding.

The fund announced a conditions agreement to sell its stake in BioAgilytix to global private equity firm Cinven on November 17 this year. Upon completion, Cinven will become the majority shareholder of BioAgilytix.

As of November 30, the self-directed investment trust company with net assets of £ 2.7 billion outperformed its benchmark, the FTSE-All Share Index, posting a total return of net asset value over a year of 38.2%, more than double the return of the FTSE index of 17.4%. The fund’s net asset value fell from 4,606p to 4,846p from October 31, and the fund was trading at a haircut of 27.5%. For comparison, the trust was trading at a 20.9% haircut on October 31, which means the haircut has widened.


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