- Generate total returns that outperform inflation by at least 3% over the medium and 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 generation
We primarily invest in equities, on a global basis, to achieve our target returns.
Investments are managed across three core competencies:
Split into two portfolios: Capital and Income. Global businesses with brand, IP and strong market positions that have long-term value, a good record of ROCE and a strong asset base.
10% total return
no yield target
7% total return
3.5% yield on cost
30-40% across both portfolios
Established UK mid-market businesses with robust operating margins, led by strong management teams targeting meaningful growth.
14% total return
2.5% yield on cost
Indirect investment through Asian and US based private equity funds.
12.5% total return
Caledonia differentiation – investing our balance sheet
Corporate banking facilities support short-term liquidity requirements. Gearing only in investee companies
Not managing for fees
Looking beyond the next 10 years
No arbitrary time constraints
Time is our ally, not our impediment. Unlike most others, we are not hostage to fund cycles. We have the flexibility to hold our investments for as long as necessary, which means we sell only when the time is right for our shareholders
Volatility is less of an issue as long as our investment selection is good (i.e. temporary loss of market value, not permanent loss of value within company) – although it is still pertinent, especially for Quoted Equity