Heritage Portfolios

A low-cost actively managed portfolio service designed for long-term capital growth through the use of investment trusts.

Many seasoned City professionals will expound the virtues of investment trusts over their open-ended investment company (OEIC) counterparts. Investment trusts highlight lower fees, increased diversification and significantly better investment returns over the longer term.

Investment trusts were a Victorian invention and flourished on the back of the wealth that the British Empire generated. They were a means to raise private capital to fund new developments, like railways and plantations across the world. They also allowed more moderate investors the same access to the stock market that had previously only been available to much larger capital investors and organisations.

Throughout its long history, the investment trust industry has continued to adapt to meet investors’ needs. In the last decade, the infrastructure, debt and property sectors have evolved to satisfy demand for income.

The investment trust industry has continued to invest in groundbreaking opportunities including technology, biotechnology and healthcare, emerging and frontier markets, private equity and venture capital. These recent developments continue to make investment trusts both highly attractive and relevant to investors.

Crossing Point Heritage portfolios are managed in a different process to the Guardian and Green Path portfolio services. Within our Heritage Portfolios, we adopt a traditional, longonly management style.

Reduced Fees

Lower management costs than open-ended investment companies.

Excellent Returns

Superior long-term performance and more varied sources of income.

Investing Diversifaction

Greater diversification and range of holdings.

Key Objectives

  • Superior long-term performance and returns
  • Greater diversifi cation and range of holdings
  • Global equity strategies
  • Flexible investment management
  • Lower management costs than open-ended investment companies
Heritage Cautious Portfolio

Cautious Portfolio

The Heritage Cautious Portfolio is an active growth strategy. It is aimed at medium to long term investors who are seeking capital growth from a diversified portfolio of equity investment trusts.

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Heritage Balanced Portfolio

Balanced Portfolio

The Heritage Balanced Portfolio is an active growth strategy. It is aimed at medium to long term investors who are seeking capital growth from a diversified portfolio of mainly equity investment trusts.

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Heritage Strategic Portfolio

Strategic Portfolio

The Heritage Strategic Portfolio is a an active growth strategy. It is aimed at medium to long term investors who are seeking capital growth from a diversified portfolio of mainly equity investments trusts.

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Heritage Adventurous Portfolio

Adventurous Portfolio

The Heritage Adventurous Portfolio is a an active growth strategy. It is aimed at medium to long term investors who are seeking capital growth from a speculative portfolio of mainly equity investment trusts.

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The benefits of investment trusts

The long-term performance of investment trusts is significantly aided by the fact that the investment managers do not need to hold excessive cash balances or sell assets in order to accommodate redemptions as do their open-ended investment company (OEIC) counterparts.

Being ‘closed-ended’, managers can invest in less liquid assets such as private equity, infrastructure and specialist commercial property. A longer-term plan can be engaged. This process can bring greater diversifi cation to the strategy resulting in better long-term returns and more varied sources of income.

Investment trusts also have the option to borrow up to a certain percentage of the underlying portfolio. This can potentially amplify the returns if the environment is favourable and the opportunity appropriate. There are strict rules in place to limit this process in order to avoid magnifying the potential risk.

Prof Mike Buckle Investment Manager
The virtues of investment trusts are characterised by lower fees, increased diversification and signifi cantly higher investment returns over the longer term

Prof Mike Buckle

Investment Manager

Proof is in performance

Analysis conducted by Winterfl ood Securities in late 2017 demonstrated that investment trusts beat open-ended funds around 80% of the time. A comparison table of 45 investment trusts with a fi ve-year track record shows that 35 (or 78%) achieved better net asset value (NAV) returns and 36 (or 80%) delivered higher shareholder returns than their open-ended investment company equivalent.

Over a fi ve-year period to the end of 2017, investment trusts’ average annual outperformance was 1% for NAV and 2% for share price gains.

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