The longest serving fund manager in the investment trust world has trimmed his position in another portfolio.
Fund manager Peter Spiller has decreased his stake in the £90m RM Secured Direct Lending investment trust.
Spiller, who heads up the £212m Capital Gearing portfolio – also an investment trust, increased his stake in the RM portfolio from £6.8m to £5.8m or 6.43 per cent of the total shares from 7.56 per cent.
RM Secured Direct Lending fund launched in December 2016, invests in secured debt of UK SMEs and mid-market corporates. In its first year the fund has gone back to the market to raise new cash, closing a £30m C share issue in recent months.
The proceeds of the new cash raise are nearly all utilised with over £15m deployed and a further £7m committed The fund’s ‘extensive pipeline’ of would-be borrowers means the Investment Manager expects to have the proceeds from the C share issue to be substantially deployed on a cash basis by the end of February.
Peter Spiller has managed his closed ended fund for more than 35 years – making him the longest serving investment trust manager, is well-known for his capital preservation skills. He massively outperformed the 2007-9 financial crisis as well as the 2000-3 bear market. Since 2011 Alastair Laing has also been listed as co-manager.
The trust’s performance over the past 22 years (as as the data goes back) totals 812 per cent – bet of fees – compared to 463 per cent total return from the FTSE All Share index. He has somewhat of a reputation as an activist investor particularly in the investment trust world.
Performance of Capital Gearing vs the FTSE All Share Index since 1995
Source: FE Analytics