JohnBaronPortfolios.co.uk

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. In this podcast, John Hughman speaks to Paula Traveso of Gore Street Capital about why energy storage is critical to helping the world achieve its Net Zero ambitions; how the company’s diversification across multiple grids helps smooth its earnings profile; the means by which the company plans to scale up to meet burgeoning demand for energy storage; and how its dedicated delivery teams help it manage regulatory and technological challenges.

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.

As well as interviewing investment trust managers, this page will also include interviews with other commentators in order to add perspective. The objective will be to convey a broad range of views which naturally may not reflect the portfolios' positions but will enrich our, and we hope members', investment process. Neil Wilson is chief market analyst for institutional broker Finalto and its retail trading arm Markets.com. He covers a wide range of investment and trading subjects, from companies and commodities to FX, bonds and macro-economics. He also writes for the Investors Chronicle as 'The Trader', with the daily market outlook published online each morning, and is a regular contributor to major news outlets - being quoted on the BBC, Bloomberg, Reuters, The Times, Telegraph, Guardian, London Evening Standard and more. Neil also contributes to various TV networks including Sky News, ITV, the BBC and CNBC.

MCT is one of a handful of investment companies listed in London offering direct exposure to Canadian equities. Since launch in July 2006, it has delivered consistent annualised NAV total returns of over 7% a year, of which more than two thirds comes from dividends. Although the trust has a mandate that allows it to invest up to 40% of its portfolio in US equities, it is currently 100% invested in Canadian-listed securities. In this interview we talk to Dean Orrico about why Canada is a particularly good hunting ground for income seekers; how the strength of its banking sector and resource self-sufficiency has enabled it to weather the current inflationary storm better than other markets; how an open door immigration policy is providing a solid foundation for the country’s economic growth; and why the trust has been adding to its position in its already heavily overweight exposure to Canada’s industrial and residential real estate/REITs sector.

With a market capitalisation of almost £2bn, the WWH is the largest of several healthcare-focused investment companies listed in London. The company targets capital growth by investing across the healthcare spectrum, with just under a third of its portfolio in pharmaceutical companies, a fifth in biotechnology, a fifth in healthcare service providers and another fifth in healthcare equipment companies – as portfolio manager Trevor Polishuk puts it, the company is a ‘one-stop shop’ for those wishing to gain exposure to the secular growth trends behind the industry. In this interview, John Hughman speaks to Trevor about the rationale behind WWH’s allocation across the healthcare continuum, and why AstraZeneca is its largest holding; how the pandemic highlighted the innovation strengths of the industry; the long-term trends driving the sector’s growth, and the increasing role of technology in unlocking the sector’s innovative capabilities; and why healthcare offers the best of both worlds for defensively-minded and growth-hungry investors. The company is held in some of the portfolios.

BSIF is the UK's oldest renewable energy investment company, celebrating 10 years of trading this year. Over that period, the company has delivered steady capital growth and dividends from an expanding portfolio of long-life solar assets in the UK, now made up of more than 750MW of operational solar generation. Total returns since inception stand at over 100%, and the company offers a handsome dividend yield while benefitting from two-thirds of its total assets being linked to RPI for 15 years. The company has recently altered its remit to include other forms of renewable generation including wind power and battery storage. The latter is particularly complementary to the portfolio, bringing the ability to store energy and smooth out the intermittent generating profile of renewable assets to allow them to offer baseload-style generation. The company currently has 365MW of battery storage projects under development, along with 950MW of solar at various stages of the planning, development and build process - more than enough to ensure a steady flow of future dividends. BSIF is a long-standing constituent of many of our portfolios. In this interview we talk to James Armstrong of Bluefield Partners, which manages BSIF, about how the trust's unique vertically integrated model allows it to deliver market-leading returns; the company's development plans, and the importance of battery storage within them; how it's navigated the recent volatility in energy and capital markets; and what needs to happen on the policy front to support the UK's Net Zero and energy security ambitions.