TB Wise fund tops 44% with three-year returns

The £32.77m portfolio is placed seventh out of 107 funds in the Investment Management Association Flexible Investment category, just behind its sister fund the £29.46m TB Wise Income Fund, which is delivering even larger returns for three-years of 45.16 per cent. Tony Yarrow has managed both funds for nine years.

The investment fund delivered three-year returns 15.79 percentage points higher than the peer group average.

Its net asset value at the beginning of September was £195.48m and it delivered year-to-date trailing returns of 15.87 per cent.

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The fund aims to provide capital growth in the medium to long term in excess of deposit account returns and inflation, with a focus on investing in out-of-favour areas with low portfolio turnover and a clear preference for investment trusts.

In a newsletter to investors last month, Mr Yarrow said he intended to reduce the portfolio’s holdings to less than 30 by selling some smaller holdings.

He said: “The resulting fund will be a bit more streamlined and in a better position to raise cash, should the need arise.”

The fund’s largest holding is the HG Capital Trust, which has a net asset value of £438m and aims to provide long-term capital growth in excess of the FTSE All-Share Index by investing in unquoted companies.

The second largest holding is the Graphite Enterprise Trust, which has a focus on smaller companies, while the third largest, the TR Property Investment Trust, invests in pan-European equities and UK direct property.

The portfolio has a minimum initial investment of £1000, followed by minimum monthly savings of £50. It has a maximum initial charge of 4 per cent and a maximum annual management charge of 1.65 per cent.

The fund offers IFA legacy trail commission of 0.65 per cent a year, and is available for investment in Isas. Its total expense ratio is 2.18 per cent.

By comparison the Ireland-domiciled £27.94m WDB Assetmaster Growth Fund delivered three-year returns of 17.47 per cent, more than 10 percentage points lower than the peer group average. It is placed 91st out of 107 funds.

Managed by Laurence Boyle, the portfolio aims to achieve long-term capital growth and its largest holding is an investment in HSBC, followed by the £42.14m River and Mercantile UK Equity Smaller Companies Fund.

The fund is currently delivering year-to-date trailing returns of 8.47 per cent.

It has a minimum investment of £2000, followed by additional investments of £500. The fund has a maximum AMC of 1.50 per cent, a TER of 2.85 per cent and a maximum initial charge of 6 per cent.

TB Wise Investment FundWDB Assetmaster Growth Fund
Top five holdings Top five holdings
• HG Capital Trust: 9.27%• HSBC Bank: 9.68%
• Graphite Enterprise Trust: 7.28%• River & Mercantile UK Equity Smaller Companies Fund: 7.32%
• TR Property Fund: 6.81%• Smith & Williamson UK Dynamic Return Fund: 6.73%
• Caledonia Investment Trust: 6.21%• Polar Capital Global Tech Fund: 6.04%
• British Empire Securities and General Trust: 4.49%• GLG Technology Equity Professional Fund: 5.66%

Adviser Says...

Juliet Schooling Latter, head of research for London-based Chelsea Financial Services, said: “The TB Wise fund has had some tough years, mainly in falling markets, but cumulative numbers are very good. The manager invests in both funds and investment trusts and has around a quarter of the fund in private equity at the moment. It is run much more as a multi-asset fund and is actively managed to cope with the prevailing environment, with an eye to liquidity given the underlying investments.