Heritage Portfolios
A managed portfolio service seeking long-term capital growth through investing in leading established investments trusts.
Many seasoned City professionals will expound the virtues of investment trusts over their open-ended investment company (OEIC) counterparts. Investment trusts highlight low fees, increased diversification and significantly better investment returns over the longer term.
Investment trusts were a Victorian invention and were a means to raise private capital to fund new developments, like railways across the world. They also allowed more moderate investors the same access to the stock market that had previously only been available to much larger capital investors and organisations.
Throughout its long history, the investment trust industry has continued to adapt to meet investors’ needs. In the last decade, the infrastructure, debt and property sectors have evolved to satisfy demand for income.
The investment trust industry has continued to invest in ground-breaking opportunities including technology, biotechnology, healthcare, emerging and frontier markets, private equity and venture capital. These recent developments continue to make investment trusts both highly attractive and relevant to investors.
Our four Heritage portfolios bring together investment companies which cover all major global markets and sectors. This portfolio range provides exposure to a diverse set of assets and seeks long-term capital growth at a competitive price to the investor.
Reduced Fees
Can offer lower management costs than open-ended investment companies.
Excellent Returns
Superior long-term performance and more varied sources of income.
Investing Diversification
Greater diversification and range of holdings. Global equity strategies.
Management Fee
0.30%
Our Heritage portfolios are available on the following leading platforms
The Benefits of Investment Trusts
The long-term performance of investment trusts is significantly aided by the fact that the investment managers do not need to hold excessive cash balances or sell assets in order to accommodate redemptions as do their open-ended investment company (OEIC) counterparts.
Being ‘closed-ended’, managers can invest in less liquid assets such as private equity, infrastructure and specialist commercial property. A longer-term plan can be engaged. This process can bring greater diversification to the strategy resulting in better long-term returns and more varied sources of income.
Investment trusts also have the option to borrow up to a certain percentage of the underlying portfolio. This can potentially amplify the returns if the environment is favourable and the opportunity appropriate. There are strict rules in place to limit this process in order to avoid magnifying the potential risk.
"The virtues of investment trusts are characterised by lower fees, increased diversification and significantly higher investment returns over the longer term."
Prof Mike Buckle
Investment Manager
Proof is in Performance
Analysis conducted by Winterflood Securities in late 2017 demonstrated that investment trusts beat open-ended funds around 80% of the time. A comparison table of 45 investment trusts with a five-year track record shows that 35 (or 78%) achieved better net asset value (NAV) returns and 36 (or 80%) delivered higher shareholder returns than their open-ended investment company equivalent.
Over a five-year period to the end of 2017, investment trusts had, on average, an annual outperformance of 1% for NAV and 2% for share price gains.
"We are not stock brokers so we do not research or analyse individual company shares. We therefore do not offer individual stock-based portfolios. We are asset allocators, market monitors and tactical traders."
Dr Tomiko Evans
Chief Investment Officer
Contact Us
Please contact us for more information about any of our investment strategies.