JohnBaronPortfolios.co.uk

MYI is a diversified investment company with a globally unconstrained remit, and a target of delivering long-term total returns from capital growth and income above inflation. The 116-year-old investment company has been managed by Bruce Stout since 2004, with the addition of Martin Connaghan and Samantha Fitzpatrick in 2019.

In this interview with co-manager Samantha Fitzpatrick we discuss how the company has navigated the recent challenging inflation and interest backdrop, alongside the looming threat of recession; the process behind investing in the highest quality businesses and the importance of dividend growth and balance sheet strength in stock selection; how the team balances a bottom up, valuation led approach, and a top down thematic approach; how the company allocates across global markets, and why Asia remains a hugely attractive investment destination; and how MYI will continue to be managed after the retirement of long standing manager Bruce Stout.

TENT invests in a variety of renewable infrastructure assets that support the transition to a lower-carbon, more efficient energy system. It targets predominantly UK assets and seeks to generate an attractive, long-term income stream with a positive impact for its shareholders, with over 90% of its income is contracted under long-term agreements.

In this interview with lead manager Jonathan Hick, we discuss how its diversification across five technologies and focus on contracted revenue streams helps it deliver stable risk-adjusted returns to its investors; the huge opportunity in helping companies manage the transition to Net Zero on the ground; the impact of a higher interest rate environment on the renewables industry and the challenge in valuing renewable assets; the changing economics of battery storage, and how the trust is gaining exposure to this key transition technology; and the reality of the energy transition, and why it’s important to be technology agnostic as a renewable energy investor.

CVCG is an investment company focused on European corporate debt, through senior secured loans and sub-investment grade credit. The company’s primary focus is to generate income, but its team of analysts are also well-positioned to deliver capital growth by investing in bonds trading below par. That’s helped it deliver a NAV return of over 70% in its ten-year history, comfortably ahead of the AIC’s Debt – Loans and Bonds sector benchmark.

In this podcast, John Hughman speaks with portfolio manager Pieter Staelens about how the trust has navigated the recent dramatic shift in the interest rate environment; why its long-standing focus on floating rate debt has proved prescient; how the focus on large companies is helping it avoid distress in the corporate credit market, and how its deep pool of analysts allows it to target the best risk adjusted returns; and why the low interest rate era might not return for the foreseeable future. 

UEM is an investment company dedicated to equity investments in infrastructure, utility, and related sectors in the emerging markets. Supported by a team of specialist industry analysts, the company has been managed by Charles Jillings since it was established in 2011 and has beaten the global emerging markets benchmark over 1, 3 and 5 years, as well as offering an attractive dividend.

In this interview, we talk to Charles about the sectors and regions favoured by the trust including transportation, utilities, and digital infrastructure; why the company takes a bottom up approach to stock selection, and how this fits into an overlay of the four megatrends shaping global infrastructure investment; the difficulties posed to investors by China; and why the integration of ESG, and particularly governance and good management, is a key aspect of the company's investment approach.

DORE is an investment company that aims to deliver steady returns by investing in a diversified portfolio of hydro, wind, solar, and other renewable energy infrastructure assets across the UK and Europe.

In this interview we speak to the company’s manager Tom Williams about the importance of diversification in generating consistent returns from renewables; how the company creates new revenue streams through an innovative approach to asset management; the advantages of its Swedish hydroelectric portfolio and plans to develop battery storage in the country; and how distributed generation is creating new infrastructure investment opportunities around grid stability.  

NAS invests in smaller companies across the UK and US, including both public and unquoted businesses either directly or via other investment companies. The company has been managed by its chief executive officer Christopher Mills since 1982, over which time it’s achieved an annualised share price return of over 14%.

In this interview, Christopher discusses the company’s hands on investment strategy which often sees it take board seats; why many London-listed companies are choosing to leave the stock market, and the subsequent importance of exposure to private assets; the importance of managers having ‘skin in the game’; and which sectors currently offer the best opportunities … and which should be avoided.

CREI is a commercial property company that seeks to deliver a strong income return by investing in a diversified portfolio of smaller regional properties across the UK. The company’s portfolio consists of industrial, office and retail assets, with rental income underpinning a dividend yield in excess of 6%.

In this interview, manager Richard Shepherd-Cross discusses how the company’s diversified, income-focused approach has helped it outperform the wider sector this year; why rental growth is key to property investing success in an inflationary environment, and the importance of environmental building upgrades in driving rental uplifts; the outlook for key property asset classes, and why he’s currently more optimistic about the commercial property market than he has been for 18 months. 

OIT is an investment company which aims to generate capital returns by investing in a concentrated portfolio of UK companies – currently fewer than 20 – which are typically too small to be included in the FTSE 250. The company uses a ‘differentiated’, research-led approach to identify opportunities focused on four key sectors – Industrials, TMT, Healthcare and Business Services. Engagement with company managements is a key part of the approach.

In this interview, manager Stuart Widdowson tells John Hughman about the company’s value-driven approach to small cap investing; how they use a private-equity style approach to assess companies trading below intrinsic-value, and work as an ‘engaged investor’ with underperforming companies to put forward change programmes to improve returns; why they focus on certain sectors where internationally active ‘niche market leaders’ can be found; and the implications of the major discount to intrinsic value at which UK equities currently trade.

Launched in 2015, GSF is the first of a handful of London-listed investment companies focused on the provision of grid-level energy storage and is held within the Green portfolio. The company has 1.17GW of capacity installed (291.6MW) and in its pipeline (881.6MW), across 27 projects in four grids – GB, Ireland, Germany and the US. This helps it deliver a target 7% dividend yield against the average NAV.

MIGO invests in closed-ended funds across the London Stock Exchange with the aim of outperforming the 3-month SONIA interest rate benchmark plus 2 per cent. The company sits within the AIC’s Flexible Investment sector, reflecting the fact its unconstrained approach allows it to range across the investment company sector to exploit pricing inefficiencies in out of favour segments of the market. In that vein, current key exposures include Georgian and Vietnamese equities, mining exploration, uranium investors, and private equity. 

In this interview, fund manager Nick Greenwood explains to John Hughman the thinking and process behind MIGO’s contrarian investment strategy, and his thoughts on the unusually wide discounts on offer across the sector; why there’s often a mismatch between the price of investment company shares and the NAV behind them, especially in illiquid sectors such as private equity; and why mining exploration companies are undervalued given the growing demand for critical metals to enable the energy transition.

In March it was announced that Mr Greenwood – who has run the company since 2004 - was leaving Premier Miton, which currently has MIGO’s mandate. Some have speculated that he may take the mandate with him to his new employer.