Ruth Black inherited a portfolio of investments fifteen years ago and has expanded and diversified it since then. She wants to preserve her capital so that it can be used for major items of spending or passed on to children and grandchildren.
Background details
Name: Ruth Black
Age: 76
How long have you been investing? I inherited a few investments fifteen years ago (which were made about 35 years ago – four preference shares, four unit trusts, two investment trusts and one Treasury stock). I have taken advice from my daughter for last ten years to move funds from building societies to a broader range of investments.
What are your investment objectives? Mainly to preserve capital - growth is ideal but secondary. Funds should be available for major items (emergencies, holidays, grandchildren's university costs etc), but I expect the majority of capital to be passed on to children and grandchildren.
What is your attitude to risk? Limited risks are acceptable. I'm happy with the performance of my investments during the period 1999-2007, but I'm wary of further investments as a result of concerns caused by significant losses in 2008. I don't need to take risks - I have sufficient pension income and capital to cover expectations.
In what ways do you differ from the average investor? I act upon my daughter's advice – she restricts her suggestions due to my risk-reticence and general caution.
What were your most recent trades?
Royal Bank of Scotland shares - £10,000
Britannia B Soc PIBS 13% - £5,000
Kent Reliance PIBS 7.875% - £2,000
What's on your watchlist?
Corporate bonds generally, Cattles shares, SSL shares
Below, you'll see a detailed breakdown of Ms Black's holdings. And you can read the views of Chris Dillow, IC economist and behavioural finance expert, and Richard Hunter, head of UK equities at Hargreaves Lansdown .
Ruth Black's portfolio as at 16 February 2009:
| Quantity | Price (£) | Value (£) | |
|---|---|---|---|
| Equities: | |||
| 3i Investment Trust | 400 | 2.60 | 1,040.00 |
| Aga Foodservice | 2,561 | 0.90 | 2,304.90 |
| Arbuthnot Banking | 2,417 | 2.10 | 5,075.70 |
| Arriva | 3,000 | 4.60 | 13,800.00 |
| Babcock & Brown Public Partnerships | 9,990 | 1.14 | 11,388.60 |
| Banco Santander | 500 | 5.07 | 2,535.00 |
| Barclays | 869 | 1.00 | 869.00 |
| BBA Aviation | 3,200 | 0.74 | 2,368.00 |
| Braemar Seascope Shipping | 4,000 | 2.96 | 11,840.00 |
| Celsis International | 3,000 | 1.74 | 5,220.00 |
| Dairy Crest | 5,500 | 2.44 | 13,420.00 |
| Davis Service Group | 3,423 | 2.48 | 8,489.04 |
| James Halstead | 9,770 | 4.16 | 40,643.20 |
| International Power | 375 | 2.62 | 982.50 |
| Macfarlane | 10,557 | 0.18 | 1,873.87 |
| Persimmon | 4,020 | 3.19 | 12,823.80 |
| Rexam | 2,299 | 3.15 | 7,241.85 |
| Royal & Sun Alliance | 2,200 | 0.95 | 2,090.00 |
| Royal Bank of Scotland | 8,400 | 0.20 | 1,680.00 |
| Sinclair (Wlm) | 5,000 | 0.54 | 2,700.00 |
| SSL International | 1,200 | 5.08 | 6,096.00 |
| Titon | 5,500 | 0.19 | 1,045.00 |
| Unilever | 1,174 | 14.33 | 16,823.42 |
| United Utilities | 1,973 | 5.48 | 10,812.04 |
| Subtotal | 183,161.92 | ||
| Investment Trusts: | |||
| Alliance Investment Trust | 36,959 | 2.73 | 100,898.07 |
| Foreign & Colonial Inv Trust | 4,036 | 2.20 | 8,879.20 |
| Foreign & Colonial Global Smaller Co's Inv Trust | 4,784 | 2.77 | 13,251.68 |
| Invesco Leveraged High Yield Inv Trust | 11,578 | 0.32 | 3,704.96 |
| Witan | 6,516 | 3.34 | 21,763.44 |
| Subtotal | 148,497.35 | ||
| Unit trusts: | |||
| Allianz PIMCO Stirling Total Return Fund (A) | 18,500 | 1.08 | 19,980.00 |
| New Star Fixed Interest Income unit trust | 59,371.35 | 0.16 | 9,778.46 |
| Norwich Union Preference Share Class 1 | 70,000 | 0.45 | 31,395.00 |
| Scottish Widows UK Growth Share Class A Accum | 9,974.073 | 0.89 | 8,876.92 |
| Subtotal | 70,030.39 | ||
| Preference Shares: | |||
| Balfour Beatty 10.75% Cum Cnv Red Pref 2020 | 14,250 | 1.20 | 17,100.00 |
| HBOS 9.25 non-cumulative irred pref shares | 4,050 | 0.86 | 3,462.75 |
| Royal & Sun Alliance Irred 7(3/8) Pref Shares | 14,042 | 0.97 | 13,655.85 |
| Subtotal | 34,218.60 | ||
| PIBS etc: | |||
| Britannia B Soc PIBS 13% | 4,000 | 1.39 | 5,540.00 |
| First Active Perpetual Subordinated Bonds 11.75% | 20,000 | 1.09 | 21,800.00 |
| Kent Reliance PIBS 7.875% call 27/8/2014 | 38,000 | 0.91 | 34,580.00 |
| Subtotal | 61,920.00 | ||
| Bank/building society fixed rate bonds: | |||
| Maturity date | |||
| June 12, 2009 | 13,700.00 | ||
| July 31, 2009 | 17,300.00 | ||
| August 1, 2009 | 3,000.00 | ||
| September 15, 2009 | 23,000.00 | ||
| September 19, 2009 | 4,400.00 | ||
| November 19, 2009 | 20,300.00 | ||
| December 2, 2009 | 35,000.00 | ||
| May 5, 2010 | 7,300.00 | ||
| August 10, 2010 | 5,700.00 | ||
| Subtotal | 129,700.00 | ||
| National Savings Certificates - Index Linked | 12,000.00 | ||
| Cash etc: | |||
| Building society easy access accounts | 15,500.00 | ||
| Cash ISA variable rate + bonus | 11,400.00 | ||
| Subtotal | 26,900.00 | ||
| TOTAL PORTFOLIO VALUE | £666,428.25 | ||
