when it comes to holdings in my portfolio I tend to split it into 5 sectors Real Assets,shares,Emerging markets ,Private Equity and Tech& Biotech
With Real assets one that has paid off for me over the last couple of years is Tufton Oceanic Assets (LON:SHIP) which is an investment trust that invests in second hand vessels from tankers to container ships it’s long term aim is
“INVESTMENT OBJECTIVES AND STRATEGY
To provide investors with an attractive level of regular and growing income and capital returns through investing in a diversified portfolio of secondhand commercial sea-going vessels”
In the time I have held it has increased its divi 3 times and is now at $0.08 giving a yield of around 6.25 % on my original investment the yield would be around 9%
It has moved up strongly recently but the management who have a long history in the shipping industry believes we have a lot further to go
“Overall, the supply side recovery in shipping continues with the orderbook close to thirty-year lows which will result in slowing fleet growth. Other than commodity price inflation, industry specific factors including the consolidation of yard capacity and new environmental regulations are driving newbuild vessel prices higher. The Clarksons newbuilding price index rose c.10% in 1H21. Ceteris paribus, higher newbuild prices drive secondhand vessel values higher. Tufton believes the shipping market is in the early innings of a multi- year upcycle and continues to deploy and recycle capital across the tanker, bulker and containership segments”
On the downside company is priced in $ and the only way to deal is by telephone order (with HL anyway ) so you would want to deal in a reasonable amount and it is headquartered in Guernsey the company could be Illiquid at times of high volatility
As always do your own research and this company won’t be for everyone but in my opinion is good way to get exposure to the shipping market
For further information
http://www.tuftonoceanicassets...
