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.