Wealth preservation

I was wondering whether anyone had any thoughts on wealth preservation investment trusts.

My portfolio’s 100% in equities, so I’m looking to diversify my Sipp a little as I’m getting older and I’d like to smooth out future corrections/crashes.

Rather than add trusts or ETFs for bonds, real estate, infrastructure, commodities and so on, I’m toying with the idea of adding one or two of the following ‘all weather’-style ITs instead:

Capital Gearing Trust (CGT) – The frontrunner. I have a lot of trust in its manager, Peter Spiller, who has been at the helm for nearly 40 years. The ongoing charge is also reasonable at 0.58%.

RIT Capital Partners (RCP) – Originally set up to manage the Rothchilds’ wealth, this one’s a bit different and more volatile. It offers access to some securities that would otherwise be nigh impossible for retail investors to get their hands on. The ongoing charge is not too bad at 0.66% and I think it would complement one of the others quite well.

Ruffer Investment Trust (RICA) – The 1.08% ongoing charge puts me off because you’re more or less getting the same thing cheaper with CGT. It also has a relatively short track record.

Personal Assets Trust (PNL) – Probably bottom of my list at the moment because it holds a fair few stocks that I already have exposure to through Fundsmith such as MSFT and ULVR.

I’d be looking at a 5-10% allocation initially, which I’d increase as I approach retirement, and I’m leaning towards a 50:50 split between CGT and RCP, but I’d welcome any thoughts on the above trusts and the strategy more generally.


Have you considered the LifeStrategy ETFs?

Available for sale on a couple of exchanges in EUR (but I think would need added to 212):

The LifeStrategy 100% is effectively VWRP and VWRL, depends what currency you’re looking for I guess, but you could just work your way down as you age.

*EDIT Ok so you would have a 0.15% FX fee from 212 potentially on each trade, but the ongoing OCF of Lifestrategy is much lower than that of the two trusts you picked.

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I hadn’t, no. That’s a good shout, I would welcome any other suggestions. I could perhaps combine CGT with one of the 20-40% LS funds or ETFs to lower my costs. I could access the OEICs through my VG Sipp. Decisions, decisions! :thinking:

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Past history … performance … blah blah blah, but useful none the less:

What is interesting is how RIT caught up almost with the 80% in the past year.

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Yeah, I find RCP quite intriguing, I’ve been doing a bit of digging through its holdings, and there’s a fair few hedge funds and private equity funds. You would imagine the Rothchild family has some good connections and if it’s good enough for them…

I think CGT plus RCP would offer more of what I’m missing in terms of some exposure to commodities and real estate as opposed to purely bonds. The equity part of the LS funds/ETFs would also mirror much of what I already hold through VG’s global all-cap fund.

Another way is selling some of the all-cap units and buying the VG short term government bonds fund. Not for the returns but to smooth the curve. I’m wary of actively managed funds and the VAGP part of the LS funds contains longer term bonds, which will tank when eventually interest rates rise again…

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