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Our strategy
Caledonia invests in proven, well-managed businesses that combine long-term growth characteristics with an ability to deliver increasing levels of income.
We are a self-managed investment trust, and we utilise our resources and relationships to identify opportunities, apply a disciplined investment process and robust risk management to deliver long-term capital growth and dividends for our shareholders.
Expert team
Our team has deep knowledge of the companies and sectors in which we invest. Our culture is centred around a collection of values that shape our approach to every aspect of investing: insightful, supportive, responsible, considered and long-term.
Long-term approach
We buy to hold, investing in high-quality companies with strong market positions and fundamentals alongside investments in funds with track records of success.
Investment process:
Source opportunities
Opportunities are identified through our business network and our own research. An initial review will identify opportunities with characteristics which meet our strategic risk/return appetite.
Analyse and invest
Extensive and ongoing business and financial due diligence is conducted, often using independent advisers, before a final investment decision is made.
Collaboration
We build long-term rewarding relationships with our investee companies and funds. Investments are subject to continuous performance monitoring and risk reviews.
Reinvest or return
Proceeds from the sales of investee companies and funds are reinvested in new investment opportunities or returned to shareholders through dividends or share buybacks.
We invest via three pools: Public Companies, Private Capital and Funds. Each has a strategic allocation of capital, investment strategy and target return. The result is a well-balanced diversified portfolio of investments with global reach.
Our strategic objectives are as follows:
- Generate total returns that outperform inflation by at least 3% – 6% over the medium to longer term
- Generate total returns that outperform the FTSE All-Share index over ten years
- Pay annual dividends increasing by inflation or more over the longer term
- Manage investment risk effectively for long-term wealth creation
Public Companies
We invest in high quality businesses where long-term ownership will be rewarded.
The companies in our portfolio typically have similar characteristics, including:
- Strong market position
- Underlying growth and pricing power
- Profitable with good and sustainable returns on capital
- Capable management closely aligned with long-term investors
Value:
£1016m
Net assets:
35%
Private Capital
We invest directly, either on a majority or minority basis, in a small number of private companies predominantly in the UK mid-market. The team work very closely with portfolio companies providing operational and strategic support alongside long-term capital in order to drive value.
The qualities we focus on are:
- Well established businesses with strong market positions
- Experienced management teams
- Profitable and cash generative
- Prudent capital structures
Value:
£848m
Net assets:
29%
Funds
We invest in funds managed by leading managers in North America and Asia. We seek to partner with some of the world’s most talented managers in long and profitable relationships. We focus on regions that are the engines of well-proven global growth, namely North America and Asia. Our relationships tend to span multiple fund vintages and we often take advisory board positions to influence fund development.
The qualities we focus on are:
- Successful track record
- Stable team
- Expertise in driving value through cycles
- Alignment of interest
Value:
£875m
Net assets:
30%
Results & reports
Browse and download from our library of results announcements, annual reports and presentations.