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Why Midas' Reeks is excited about India and Thailand
Markets
by Annabelle Williams on Jan 29, 2013 at 09:57
Midas Investment Management’s Simon Reeks explains why he has moved heavily into investment trusts and is expecting good things from Thailand and India.
Positioning
Last year, the Midas Balanced Portfolio was positioned with 25% in direct equities and 75% in investment trusts. Reeks held mostly blue chip stocks, including Burberry, Schroders, Siemens and Honeywell, but in recent months he has slowly moved out of direct equities and topped up his investment trust holdings to 95%.
‘You get diversification while you are waiting around for something to happen,’ he said, adding that the decent yields on offer from many investment trusts was also a factor.
However, Reeks believes some are now starting to look expensive so has begun trimming positions, slowly topping up cash reserves instead.
‘The BlackRock Greater Europe trust has 20% invested in Switzerland and 18% in Germany. Northern Europe is offering pretty good value, so that’s why we went into that fund. In some respects we were right, because the Dax rallied heavily last year,’ he said. ‘But we have been selling that off now the discount has narrowed.’
Performance
The portfolio has returned 21.2% including dividends over the year to 31 December 2012, compared to the FTSE All Share’s 12.3% return.
Reeks attributes this to good trust selection. Bankers Investment Trust delivered a 23% return, Murray International returned 18% and Schroder Oriental Income was up 24%.
‘People want safety and you can get that here. And you can still outperform if you are in the right investment trust,’ he said.
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- Burberry Group PLC
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- Bankers Investment Trust PLC
- Murray International Trust PLC
- Schroder Oriental Income Fund Ltd
- BG Group PLC
- Aberdeen New Thai Investment Trust PLC
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