Search Home Who we are Our strategy Shareholder centre Invest with us News & media Contact us Quoted Equity We believe you build wealth by owning companies, not trading them on the stock market. Focused on ‘co-owning’ companies that are built on solid foundations and generate cash, we target businesses that we understand and that can deliver good returns on capital. We tend to find these companies within technology, healthcare and life sciences equipment and services, industrials and consumer goods. In our search for underlying predictability and pricing power, we look for factors such as a strong brand, scalability, repeat business and a strong market position. The strategy has two key objectives, firstly to provide exposure to individually excellent companies for a long period of time to gain long-term economic benefit. Secondly, to hold these in a combination that creates a relatively resilient equity portfolio. Holdings & performance – Capital Holdings & performance – Income The Quoted Equity strategy is split into two portfolios: Capital and Income. The portfolios contain significant holdings in well managed companies, held for the long term. These investments typically offer substance, brand, intellectual property and strong market position. Introducing Quoted Equity We are not traders of stocks; we are long-term owners of companies. Watch film “The Quoted Portfolio is a risk managed, concentrated collection of high quality companies which we can hold for long periods of time. We always invest with a margin of safety, using general stock market volatility for entry points and to make sure we are being careful with our shareholders’ money.” Mathew Masters Head of Caledonia Quoted Equity Meet the Quoted Equity team Combined portfolio performance data Over 1 Yr Over 3 Yrs Over 5 Yrs Absolute Return 21.4% 51.1% 81.9% Annualised Return 21.4% 14.8% 12.7% as at 30 September 2021 Capital Portfolio The Capital portfolio comprises investments in well-managed, publicly quoted companies, held for the long term. We select mature, enduring businesses that have a significant presence in their market – and where assets consistently produce strong returns on capital, enabling reinvestment and growth. Our objective is to deliver a 10% annual return, with no income constraint. Performance Data Over 1 Yr Over 3 Yrs Over 5 Yrs Absolute Return 26.0% 69.5% 122.8% Annualised Return 26.0% 19.2% 17.4% as at 30 September 2021 Holdings Ten Largest Holdings Value (£m) Oracle 60.3 Microsoft 59.1 Charter Communications 49.0 Thermo Fisher Scientific 42.5 Texas Instruments 40.9 Spirax Sarco 40.2 Hill & Smith 39.0 Watsco 38.3 Polar Capital 32.2 Croda International 28.8 Becton Dickinson 26.6 Philip Morris 25.2 Fastenal 24.6 British American Tobacco 22.7 529.4 Remaining holdings 57.1 Total 586.5 as at 30 September 2021 Geographic distribution 65% North America 31% UK 3% Europe Sector distribution 40% Industrial 21% Technology 12% Healthcare 7% Consumer goods 9% Telecommunications 6% Financial 5% Basic materials as at 30 September 2021 Income Portfolio The Income portfolio is constructed using similar quality criteria as the Capital portfolio: we invest selectively in mature, long-term businesses with resilient business models and the capacity and management culture to pay sustainable dividends. Our objective is to deliver a 7% annual return, with an initial yield of 3.5% based on the cost of investment. However, once invested we will not sell down positions simply based on dividend yield, as this will fall as a result of share price growth. Our underlying strategic aim is to invest in good quality companies whose progress over time will grow the absolute amount of dividend ahead of inflation. Performance Data Over 1 Yr Over 3 Yrs Over 5 Yrs Absolute Return 11.7% 14.3% 19.6% Annualised Return 3.4% 4.5% 3.6% as at 30 September 2021 Holdings Top Holdings of more than £10m Value (£m) Yield % Reckitt Benckiser 15.7 3.2 Texas Instruments 15.2 2.1 Unilever 14.9 3.9 Watsco 14.4 2.7 Fortis 14.2 3.6 Diageo 12.8 2.0 SGS 12.5 2.9 National Grid 11.6 5.4 Sabre Insurance 11.5 7.5 British American Tobacco 11.3 8.3 Big Yellow 10.9 2.3 DS Smith 10.6 3.2 155.6 Remaining holdings 35.6 4.5 Total 191.2 4.2 as at 30 September 2021 Geographic distribution 65% UK 28% North America 7% Europe Sector distribution 16% Financial 33% Industrial 32% Consumer goods 19% Utilities as at 30 September 2021 Our geographical analysis reflects listing location. Home Who we are Our strategy Shareholder centre Invest with us News & media Contact us Privacy & cookies policy Terms & conditions Modern slavery statement Tel: 020 7802 8080 Email: enquiries@caledonia.com © 2021 Caledonia Investments plc. Registered in England and Wales. Company number 00235481 Registered office: Cayzer House, 30 Buckingham Gate, London SW1E 6NN Our use of cookies We use cookies to optimise site functionality and give you the best possible experience. AcceptCookie Preferences