YFSOL V is our newest strategy. It is a value investing strategy. It’s the strategy that has made Warren Buffett (the world’s second-richest man in 2017, according to Forbes) most of his fortune.
Value investors believe that a stock’s price is not necessarily the same as the company’s value, and that money can be made by buying such businesses for less than their true worth. Value investing is once again gaining traction among major fund managers. We believe it is overdue a comeback, which is why we’ve created YFSOL V—an investment strategy that gives you the opportunity to invest like Warren Buffett does.
The key is identifying companies that are undervalued by the stock market. That’s not easy. So we’ve identified some of the best value-style investment managers in the world and combined their expertise in one simple strategy. Even better—because this is part of our Polaris range of strategies, we’ve been able to make it accessible and affordable.
Your V funds
We’ve brought together five outstanding funds in one simple strategy. They are all UK-based investment trusts—an investment vehicle that provides a low-cost investment structure. They are big guns. You’ll have heard of some of them. They all have exceptional experience and outstanding long-term track records. We’re strong believers in experience.
Our five are:
- Rothschild Investment Trust – A household name!
- Ruffer Investment Company – Its primary aim is capital preservation, then growth.
- Lindsell Train Investment Trust – An outstanding team with great conviction.
- Personal Assets Trust – It has a truly outstanding manager in Robin Angus.
- Miton Global Opportunities – Invests in smaller undervalued investment trusts.
Take a moment to Google any of these investment trusts to see for yourself just how good they are. You can also click on each company name to visit their website.
The concept of YFSOL V is simple. We’ll put 1/5 of the money invested through this strategy in each of these five manager’s primary trust. That means an investment of EUR 50,000 will have EUR 10,000 working in each one.
If YFSOL V had been live for the past 5 years, it would have grown…
in 3 years
in 5 years
The benefits of investment trusts
Because all five YFSOL V funds are investment trusts, you’ll benefit in a number of ways:
- Investment trusts are able to borrow money to invest. That means they can borrow money to increase their investment (and returns) in rising markets.
- Investment trusts are a relatively low-cost way of accessing the stock market compared with alternatives.
- Investment trusts don’t have to pay out all their dividend every year, allowing them to keep some back in good years to bolster payments to investors in bad years—ensuring consistent and regular income.
- Investment trusts are run by independent boards, providing independent oversight of their performance.
- Investment trusts give you access to investment opportunities throughout the world.
- Investment trusts don’t pay capital gains tax when they sell shares. Private investors do.