| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | 5.4% |
Caledonia delivered a NAVTR of 5.4% for the year ended 31 March 2026, extending its track record of long-term real returns with 9.2% annualized over 10 years, outperforming inflation by 5.8% p.a. All three investment pools contributed positively: Public Companies returned 1.2% despite March volatility from the Iranian conflict; Private Capital delivered 13.1% driven by the agreed sale of Stonehage Fleming and strong AIR-serv performance; and Funds returned 4.9% (7.1% in local currency) supported by quality realizations. The company increased its dividend by 4.4% to 7.68p per share, marking 59 consecutive years of growth. However, total shareholder return was -7.1% as the discount widened to 43.4%, partly due to geopolitical tensions. The board allocated £34.6m to share buybacks and implemented initiatives including a 10:1 share split and enhanced investor communications. With net cash of £90m, undrawn facilities of £325m, and expected proceeds of c.£290m from Stonehage Fleming, Caledonia is well-positioned to pursue opportunities while navigating ongoing market uncertainty through its disciplined, quality-focused investment approach.
Caledonia is a self-managed investment trust with a permanent balance sheet that invests across three complementary pools—Public Companies, Private Capital, and Funds—to deliver long-term compounding real returns through disciplined, high-conviction investing in quality businesses. The company's 'Time Well Invested' philosophy emphasizes patient capital, fundamental research, and active stewardship, enabling it to look through market cycles and capitalize on opportunities during periods of dislocation. With 59 consecutive years of dividend growth, a diversified global portfolio, and a strong balance sheet providing significant liquidity, Caledonia is positioned to navigate uncertainty while remaining focused on sustainable value creation for shareholders.
Looking ahead, management recognises that uncertainty in the economic and geopolitical backdrop is likely to remain a feature of markets in the year ahead. Nevertheless, Caledonia is well placed to continue delivering long-term value for shareholders. The strength of the model, centred on investing in high-quality companies with lower levels of financial risk, gives confidence in the resilience of the portfolio and its ability to perform over the long term. The balance sheet and liquidity are strong, with expected proceeds of c.£290m from Stonehage Fleming providing the ability to pursue opportunities as they arise. Management remains focused on compounding NAV over the long term, while continuing efforts to improve shareholder returns and ensure that the strength of the investment proposition is more fully reflected in the share price.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 18 2026 | 2026 Q2 | BATS.L, BDX, CHTR, CRDA.L, CTAS, ECL, NG.L, ORCL, PAYX, POLR.L, POOL, REL.L, SABE.L, SCHW, SGE.L, WSO | Dividend Growth, Funds, Investment Trust, long-term, NAV Growth, Private Capital, Public Companies, Quality | - | Caledonia delivered 5.4% NAVTR with all three pools contributing positively, extending its 10-year track record of 9.2% p.a. returns. The agreed sale of Stonehage Fleming at 3.2x cost highlights the patient capital approach. Despite strong NAV growth and 59 years of dividend increases, the share price discount widened to 43.4% amid geopolitical volatility. With robust liquidity and a quality-focused portfolio, Caledonia is positioned to capitalize on opportunities while navigating uncertainty. |
| May 19 2026 | 2026 Q1 | CINF, ORCL, PAYX, SCHW | Diversified, dividends, global, long-term, Multi-Asset, Private Capital, Quality | - | Caledonia delivered 5.4% NAV returns with strong private capital performance led by Stonehage Fleming sale generating 3.2x returns. Maintained 59-year progressive dividend streak while building £415m liquidity for selective deployment. Diversified £3.0bn portfolio across public companies, private capital and funds targeting inflation +3-6% returns through disciplined long-term approach. |
| Jan 27 2026 | 2025 Q4 | CLDN.L | Asia, diversification, Mid-market, North America, private equity, value creation | - | Caledonia Investments operates a diversified £3.0bn investment strategy targeting inflation-plus returns through North American lower mid-market private equity and Asian growth opportunities. The firm emphasizes operational value creation in fragmented markets, delivering strong long-term performance with 58 consecutive dividend increases while maintaining exposure to structural growth themes across both regions. |
| Nov 25 2025 | 2025 Q3 | BABA, BTI, CHTR, CRDA.L, DGE.L, FAST, HILS.L, MCO, MSFT, ORCL, PM, POOL, REL.L, SCHW, SGE.L, SPX.L, TMO, TXN, WSO | AI, diversification, global, Private Capital, Public Companies, technology | - | Caledonia delivered 4.4% NAV return driven by strong Public Companies and Private Capital performance. AI-driven technology gains and Stonehage Fleming sale at 3.2x cost highlight patient capital approach. Permanent balance sheet enabled opportunistic deployment during market volatility. Despite macroeconomic uncertainty and sector discount pressures, diversified global portfolio and £430m liquidity position the firm well for long-term value creation. |
| Mar 31 2024 | 2024 Q4 | 7181.T, HOLX | AI, energy, healthcare, Japan, private equity, Take-privates | - | BXPE delivered 3.9% Q3 returns through record $1.3B deployment across high-conviction themes including AI, energy transition, and large take-privates. Strong operating performance drove broad-based portfolio appreciation with 80% of investments gaining value. Strategic investments in OpenAI, Anthropic, and major take-privates of TechnoPro and Hologic position the fund for continued growth as market conditions improve. |
| Mar 31 2023 | 2023 Q4 | 004020.KS, 009540.KS, 028260.KS, 090430.KS, 4527.T, 9301.T, C011.HK, CDI.PA, ENT.L, GXI.DE, MC.PA, NWSA, REA.AX, VIV.PA | discount, Governance, Holdings, Korea, NAV, value | NWSA | AVI Global Trust focuses on companies trading at deep discounts to net asset value. Building Korean exposure to 9.5% of NAV, capitalizing on governance reforms with 68% of KOSPI below book value. News Corp remains core holding despite recent weakness, with REA stake providing compelling value unlock potential following Murdoch family succession resolution. |
| Mar 31 2022 | 2022 Q4 | - | Balance Sheet Strength, Capital Allocation, Inflation Resilience, Market Dislocation, private markets | - | |
| Mar 31 2021 | 2021 Q4 | - | Capital Allocation, Diversified portfolio, Long-Term Compounding, Net Asset Value Growth, Private Capital | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIAI was a significant theme during the year, driving market volatility and influencing portfolio decisions. Oracle experienced a substantial re-rating following AI-related announcements in September, leading to a 96.3% return for Caledonia after active risk management. The rapid progress in AI fueled both optimism and concern, with sentiment fluctuating throughout the year. Management views AI as an important long-term theme but maintains discipline, focusing on fundamentals rather than chasing momentum. |
Oracle Technology Volatility Risk Management |
Private CapitalThe Private Capital pool delivered strong performance with a 13.1% return, driven primarily by the agreed sale of Stonehage Fleming and solid operational performance from AIR-serv Europe. The sale of Stonehage Fleming represents a 3.2x multiple on cost and demonstrates Caledonia's patient capital approach. Transaction volumes in private markets remained low overall, though some early signs of momentum returned during the year. The pool is expected to be temporarily underinvested following the Stonehage Fleming sale completion. |
Stonehage Fleming AIR-serv Realizations Buy-to-own | |
DividendsCaledonia extended its record of growing annual dividends to 59 consecutive years, with a 4.4% increase to 7.68p per share. The interim dividend was re-profiled to 50% of the prior year's total to provide a more balanced and predictable income stream. Total net investment income increased from £53.6m to £64.7m, with net revenue profit of £40.4m sufficient to fully cover the dividend. The progressive dividend policy aims to increase annual dividends by at least the rate of inflation over the long term. |
Progressive Income Coverage Sustainability | |
DiscountThe share price discount to NAV widened significantly during the year, averaging 34.0% and ending at 43.4%, partly due to the Iranian conflict in March. This resulted in a disappointing total shareholder return of -7.1% despite positive NAV growth. The board believes the share price continues to undervalue the quality of the portfolio and long-term performance track record. Multiple initiatives were undertaken to address the discount, including share buybacks (£34.6m allocated), a 10:1 share split, dividend re-profiling, and enhanced investor communications. |
Valuation Share buybacks Investor relations | |
GeopoliticalGeopolitical tensions, particularly the Iranian conflict in March 2026, contributed to increased market volatility and had a pronounced impact on portfolio performance. The conflict led to a 7.8% decline in the Public Companies pool in March alone, significantly affecting the year-end return. Ongoing geopolitical tensions in the Middle East are contributing to an uncertain macroeconomic environment. Management acknowledges that uncertainty is likely to remain a feature of markets in the year ahead. |
Iran Volatility Risk Middle East | |
QualityQuality remains central to Caledonia's investment philosophy across all three pools. The Public Companies pool focuses on businesses with durable competitive advantages, pricing power, and management teams aligned with shareholders. Private Capital targets cash-generative businesses with strong growth prospects and resilient market positions. The quality framework emphasizes high returns on invested capital, disciplined cost control, and the ability to reinvest for growth without excessive leverage. This quality focus is designed to help businesses withstand economic cycles and compound value over time. |
Fundamentals Competitive advantage Pricing power Long-term | |
InflationInflation remains a key consideration in Caledonia's strategy and performance measurement. The company targets outperformance of inflation by 3-6% over the medium to long term, achieving 5.8% p.a. outperformance over 10 years. The progressive dividend policy aims to increase dividends by at least the rate of inflation over the long term. Towards the end of the year, the Iranian conflict increased inflation, creating a more challenging environment. The annual bonus scheme uses inflation (CPIH) as a benchmark, with the company's NAVTR of 5.4% slightly exceeding the inflation benchmark of 3.6%. |
Real returns CPIH Purchasing power | |
FundsThe Funds pool delivered a 4.9% return (7.1% in local currency), with positive contributions from both North America and Asia holdings. Performance was supported by quality realizations and robust operating performance of underlying companies, though distributions remained subdued as anticipated. The portfolio is resilient with significant exposure to domestic US markets and businesses with sticky revenue profiles. Increased fundraising and IPO activity in Asia is encouraging. The pool provides diversification and access to hard-to-reach markets through partnerships with proven, operationally focused managers. |
North America Asia Diversification Lower mid-market | |
| 2026 Q1 |
DividendsCaledonia maintained its progressive dividend policy with 59 consecutive years of dividend increases. Final dividend of 4.00p per share brings total dividend to 7.68p per share, representing a 4.4% increase. The company emphasizes maintaining this progressive dividend approach going forward. |
Progressive Consecutive Growth Policy Yield |
Private CapitalStrong performance driven by agreed sale of Stonehage Fleming for expected proceeds of £290m, representing 3.2x multiple on cost and 30% uplift to NAV. AIR-serv continued strong performance with operational efficiencies and geographic expansion. Portfolio focused on 8 predominantly UK companies with buy-to-own approach. |
Buyout Value Creation UK Mid-market Partnership | |
AIOracle position benefited from AI-related announcements that drove sharp share price appreciation, leading to £65m realization. The company capitalized on AI momentum in technology holdings but took profits rather than maintaining full exposure. |
Technology Announcements Momentum Realization | |
| 2025 Q4 |
Small CapsThe fund operates a concentrated Micro and Small-Cap strategy that naturally diverges from market indexes. Portfolio consists of ~60% businesses with market caps below $500M, with top five positions accounting for ~60% of the portfolio. |
Microcap Small Cap Concentration |
ValueManager emphasizes finding great ideas at reasonable prices and waiting for attractive valuations. Sold Bel Fuse after three years but would buy again at more reasonable prices. Kitwave acquisition significantly undervalued the business in their opinion. |
Valuation Price Undervalued | |
| 2025 Q3 |
AIStrong performance from Oracle, Microsoft and Alibaba Group driven by their cloud businesses and AI-related services. Oracle's share price rose sharply following AI-related announcements which led to significant re-rating of shares. AI developments are creating opportunities across technology holdings. |
Cloud Technology Software Growth |
Private CapitalPrivate Capital pool delivered 7.7% return driven by agreed sale of Stonehage Fleming and operational performance from AIR-serv. Strategy focuses on cash generative businesses with strong growth potential in UK mid-market. Portfolio valued using earnings multiples in range of 10 to 14.5 times EBITDA. |
Mid Market UK Growth Value Creation | |
DiversificationPortfolio diversified across three pools: Public Companies (35%), Private Capital (30%), and Funds (29%). Geographic diversification with 46.5% North America, 34.9% UK & Channel Islands, 10.5% Asia, 8.1% Europe. Strategy provides well-balanced global portfolio managing risk through diversification. |
Global Risk Management Asset Allocation Balance | |
| 2024 Q4 |
AIBlackstone continues to focus on the picks and shovels of AI through infrastructure investments such as chips and data centers, while the market's maturation has opened the door for measured exposure to the application layer. BXPE invested in OpenAI and Anthropic — two category-defining AI research labs with complementary strategies in consumer and enterprise use cases. |
Data Centers OpenAI Anthropic Infrastructure Applications |
Energy TransitionAfter two decades of stagnation, US electricity demand is projected to rise by 40% over the next 10 years. One key reason is data centers, where over 80% of hyperscalers and operators cite power availability as their top growth constraint. Electrification and reshoring of manufacturing are also fueling this secular trend. |
Electricity Demand Data Centers Electrification Power Grid | |
DigitizationDigitization — investments tied to the global shift online — was a top contributor, accounting for 21% of Q3 performance. This theme represents the ongoing digital transformation across various industries and business models. |
Digital Transformation Online Technology Software Digital | |
| 2023 Q4 |
South KoreaBuilding exposure to Korea due to corporate governance reform agenda and deeply undervalued companies. Korean names have contributed +1.1% to NAV with weighted average total return of +25%. 68% of KOSPI index still trading below book value and 61% without sell-side coverage. |
Corporate Governance Value Reform Discount Undervalued |
ValueFocus on companies trading at discount to estimated underlying net asset value. News Corp trading at significant discount with REA stake accounting for 75% of market cap. Amorepacific Holdings trading on widest ever discount of 52%. |
Discount NAV Undervalued Asset Value Mispriced |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 31, 2025 | Fund Letters | Caledonia Investment | NWSA | News Corp | Communication Services | Publishing | Bull | NASDAQ | Asset Spin-off, Australia, discount to NAV, Family Trust, holding company, information services, media, Publishing, turnaround, value unlock | Login |
| TICKER | COMMENTARY |
|---|---|
| ORCL | Oracle's share price rose sharply in September following a series of AI-related announcements, which led to a significant re-rating of the shares. Our return of 96.3% reflects the partial realisation of gains given this strong performance, ahead of a subsequent notable reduction in Oracle's share price. We successfully risk managed the position, realising £65m, delivering a 96.3% return during the year, which compares favourably with the return that the stock delivered of 2.4% over the year. Since initiating the investment in 2014, we invested a total of £35.2m and realised £112.4m, including dividends. At 31 March 2026, the remaining holding was valued at £41.6m and the annualised return since investment was 19.4%. |
| POLR.L | Polar Capital's performance followed an increase in assets under management and improving profit expectations. The strongest performers in terms of share price returns were Oracle (96.3%), Polar Capital (57.5%) and Charles Schwab (27.3%). |
| SCHW | Charles Schwab's performance followed an increase in assets under management and improving profit expectations. We initiated Charles Schwab and topped up a number of other positions during the April 2025 period of market weakness. We initiated two new positions in the year: Charles Schwab, a leading US financial services firm with over $11 trillion assets under management, and Cintas, a specialist corporate uniforms, workplace supplies and safety services supplier. |
| CHTR | Gains across the Capital portfolio were partially offset by negative contributions primarily from Charter Communications (-41.7%), Pool Corp (-38.1%) and Watsco (-27.4%) due to a period of softer demand in their end markets and the investor sentiment that followed. However, we remain confident in the longer-term prospects of all and in fact took advantage of this market weakness to top up our positions in each of these holdings during the year. |
| POOL | Gains across the Capital portfolio were partially offset by negative contributions primarily from Charter Communications (-41.7%), Pool Corp (-38.1%) and Watsco (-27.4%) due to a period of softer demand in their end markets and the investor sentiment that followed. However, we remain confident in the longer-term prospects of all and in fact took advantage of this market weakness to top up our positions in each of these holdings during the year. |
| WSO | Gains across the Capital portfolio were partially offset by negative contributions primarily from Charter Communications (-41.7%), Pool Corp (-38.1%) and Watsco (-27.4%) due to a period of softer demand in their end markets and the investor sentiment that followed. However, we remain confident in the longer-term prospects of all and in fact took advantage of this market weakness to top up our positions in each of these holdings during the year. |
| CTAS | We initiated two new positions in the year: Charles Schwab, a leading US financial services firm with over $11 trillion assets under management, and Cintas, a specialist corporate uniforms, workplace supplies and safety services supplier. We had been monitoring both holdings for a number of years. |
| ECL | The portfolio exited positions in Ecolab and Becton Dickinson. |
| BDX | The portfolio exited positions in Ecolab and Becton Dickinson. |
| BATS.L | The strongest performers were British American Tobacco ('BAT') (49.1%), Sabre Insurance (34.9%) and National Grid (30.6%). BAT benefitted from broad operating progress supported by the accelerating growth of its smoke-free offerings while also paying an attractive dividend. |
| SABE.L | Both Sabre and National Grid continued to execute well against their stated strategies. The strongest performers were British American Tobacco ('BAT') (49.1%), Sabre Insurance (34.9%) and National Grid (30.6%). |
| NG.L | Both Sabre and National Grid continued to execute well against their stated strategies. The strongest performers were British American Tobacco ('BAT') (49.1%), Sabre Insurance (34.9%) and National Grid (30.6%). |
| REL.L | Gains were partially offset by weaker share price performances from RELX (-34.7%) and Sage Group (-30.2%). Both companies suffered from AI-related market concerns weighing on valuations despite resilient trading and earnings growth. However, we remain positive on their longer-term prospects and we used this share price weakness to top up our positions in both. |
| PAYX | The portfolio initiated a new position in Paychex, a leading provider of payroll, HR and employee-benefits services to businesses. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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