Portfolio Performance 2014/2015
The portfolio generated a total return of +8.7% in the year ending March 2015. In comparison the FTSE All Share gained 3.0%.
Equity markets were volatile but finished the year broadly flat. However, some high quality businesses continued to outperform. In our portfolio; Dignity gained +39%, Mastercard +24% and Rightmove +23%.
We bought into the IPO of Mortgage Advice Bureau. The company has a solid track record of growth and high cash generation. The Mortgage Market Review and recovering house transaction volumes are positive structural drivers.
Petrofac lost -12% as the price of oil and gas collapsed. We sold this position due to the uncertain outlook for the sector. Vertu Motors was down -8% in the period, but has gained some positive momentum since the yearend.
We have taken a portfolio decision to reduce our exposure to managed funds and increase investment in direct equities. This strategy is expected to be more volatile but should generate higher returns in the long term.