We call this approach International Collectives because we gain broad exposure to global markets in a cost‑effective way. We do not pick individual stocks one by one for this strategy. But instead, we invest in investment trusts and holding companies that themselves hold a diversified set of assets, usually within a particular region or sector.
What is an Investment Trust?
An investment trust is a type of company that’s listed on the stock exchange, but instead of selling products, it invests your money into a wide range of assets like shares, property, or other funds.
The edge comes because investment trusts are companies themselves, their shares can trade at a different price to the value of the assets they own. So sometimes you can buy in at a discount, like paying £80 for £100 worth of investments.
What’s a Holding Company?
A holding company is a bit like an investment trust but tend to own big chunks of each company it is involved in or indeed the entire businesses. It doesn’t usually make things itself but instead holds stakes in a group of companies and benefits when those companies grow or pay dividends.
As with the investment trust these holding companies shares often trade at significant discounts to their underlying asset values.
Why this approach?
It gives you access to multiple underlying assets through a single entity.
It allows us to cast a wide net globally, while still having a clear focus on region or sector themes.
These trusts/holding companies often trade at a discount to their net asset value (NAV). Meaning you’re effectively buying underlying assets for less than what they’re worth.
How we aim to generate value
We look for opportunities where the investment trust or holding company is trading at a strong discount to NAV.
By buying at a discount, we aim to capture excess performance as the discount narrows (or even turns into a premium) over time.
We also manage the portfolio actively: monitoring both the structure (the trust/holding company) and the underlying assets it holds.
What you should know
Because we invest in investment trusts/holding companies (rather than direct individual stocks), there is less need to pick each company ourselves – the structure does some of the heavy lifting. Hence, we charge a lower fee than where we stock pick.
Discounts can persist (or even widen), so there is no guarantee we will gain that excess performance we are hoping to achieve from the discount narrowing.
Global exposure means currency, regional and sector risks are all present; the value of your investment can go down as well as up.
This strategy suits investors with a medium to long‑term horizon, who are comfortable with variations in value and who seek returns beyond standard market exposure.
In short
If you are looking to invest globally, want diversified exposure in one go, and are comfortable with investing in vehicles that trade at a “discount to worth” as part of the strategy, International Collectives may be a good fit. We are not promising overnight success, but we do believe this is a structurally sound way to seek out extra value in global investment markets.
What is a portfolio?
A portfolio is just a collection of investments. We will build and manage your portfolio based on your investing goals.
By taking on the right level of investment risk for your portfolio, we improve your chances of higher returns.
We also aim to offer truly diversified portfolios. This means avoiding risks associated with investing too much in a specific asset class, industry, company or country.
Can I customise my portfolio?
We are a discretionary investment manager which means that we build, manage, and rebalance your portfolio for you.
When you first create your account, we will discuss an appropriate portfolio based on your financial situation, risk tolerance, financial experience and age.
Once we have selected a portfolio with you, the only way to further customise it is by changing your asset allocations. If you choose to overlook our recommendations, we will discuss these with you to alert you that you may not have selected the most optimal portfolio.
How does diversification benefit my portfolio?
It makes sense to diversify your investments because no single asset class performs best in all economic environments and different asset classes tend to react differently to the same event.
‘Don’t put all your eggs in one basket’ is a sound investment approach.
Although we would go further and say diversification is the most important factor in achieving long-term investment goals, as it reduces the risk associated with a given expected return.
Thus, diversification enables you to achieve a higher return for the same level of risk.
Mole Valley Asset Management is authorised and regulated by the Financial Conduct Authority. Registered No. 613008 (www.fca.org.uk), 12 Endeavour Square, London E20 1JN
Mole Valley Asset Management, Registered in England No 08600041. Registered office: 275 High Street, Dorking, Surrey, RH4 1RY
MVAM Financial Advice is a trading style of Mole Valley Asset Management Limited which is authorised and regulated by the Financial Conduct Authority.