Wayne Evans buys British Empire

Despite a defensive approach, Heron House’s Wayne Evans has tried to catch a New Year rally, and has bought British Empire Securities and General Trust at 422.5p.

Contestant

Wayne Evans, Financial planner, Heron House Financial Management

Location: Newport

Strategy: My inclination is to be defensive this year and protect capital, but at the time of writing this there does seem to be an early New Year rally under way so I tried to catch some of this.

Charity supported: St Anne’s Hospice, Newport

Bought

Investment trust: British Empire Securities & General Trust

Price purchased: 422.5p

Net asset value: 450p

Contestant's comment

This trust has a great long-term track record but has suffered in recent times with its emphasis on European holding companies. It is currently on a 7% discount but it is estimated that the discount on the underlying holdings is in excess of 30%. I have invested around a quarter of my £4,000 portfolio into British Empire Securities.

The contestant’s view by Wayne Evans

In the mid-19th century, Queen Victoria was on the throne and the British Empire was at the height of its power. At the same time, the first investment trusts were launched with the aim of providing smaller investors with the same advantages as wealthy capitalists. Their survival for over 120 years is testament to their quality.