Investment trust fund manager Peter Spiller shares his macro views
In this latest Money Makers podcast Jonathan Davis talks with Peter Spiller, the longest continuously serving fund manager in the London investment trust sector. He has been managing the Capital Gearing Trust since 1982, over which time the trust has generated a compound annual return of 15% per annum, more than 4% better than the FTSE All-Share index over the same time frame.
Put that another way, £1,000 invested at the outset would be worth £17,000 today. For many years, however, this trust was a closely guarded secret, known mainly to City connoisseurs, and difficult to invest in, as the shares frequently traded at a substantial premium to net asset value. Since last year, however, the board has initiated a zero discount policy with the aim of eliminating the premium and making the shares more accessible to the wider retail market.
The trust owns three distinct asset classes: shares in investment trusts (which provides its equity exposure), cash and bonds (for short term liquidity) and index-linked securities (for inflation protection and capital growth). It has an absolute return mandate, designed to provide a one-stop home for any individual’s wealth that will protect the capital of shareholders through all stages of the market cycle. Peter Spiller is one of the largest shareholders and has most of his personal capital invested in the trust – always an encouraging feature.
In this podcast, Peter talks about his current asset allocation – and his macro view of the markets today and in the near future.
These podcasts are the latest in a series of free regular interviews with prominent figures in the investment world, brought to you by Money Makers. You can sign up here to be notified about the next podcasts in the series, which are free to air – or subscribe on iTunes and other podcast services. Jonathan Davis, the founder of Money Makers, is also the founder of Independent Investor, a sister publishing and newsletter business. An active professional investor, he is a Senior Adviser at Saunderson House, a Member of the Chartered Institute for Securities and Investments and the author of several books about professional investors. More details at www.independent-investor.com.
In addition to managing the Capital Gearing Trust, Peter Spiller was a partner of the stockbroking firm Cazenove until 2001, when the partnership was dissolved and he set up Capital Gearing Asset Management as an independent fund management house. It manages the investment trust of the same name and a small number of funds for private and institutional investors.