The funds investing in my summer holidays

Sam Slator 23/07/19 in Strategy

Travelling has always been a passion of mine. From my first solo ‘holiday’ at the age of 16 in the Massif Central (planting grass seed and putting up avalanche nets on a mountain with a group of Russians… it’s a long story), to spending six months each in Nice, Genoa and Lille as part of my university studies.

Therefore, it’s perhaps not surprising that today holidays are my not-so-guilty pleasure. So when I met Nicolas Trindade, manager of Elite Rated AXA Sterling Credit Short Duration fund, recently and noticed he has a holding in this year’s choice, I thought it might be fun to see who else is investing in my summer holidays…

2018: a villa in Sardinia

Last year, we went to Sardinia with some family friends. Our aim: a relaxing, sunny holiday with a private pool, crystal clear waters and golden sandy beaches and the odd glass of Gavi di Gavi while the children pretty much entertained themselves.

Accommodation

My friend Sophie introduced me to AirBnB on this trip (I’ve not looked back). A holding in Scottish Mortgage Investment Trust, it’s an online marketplace and hospitality service for holiday home lets. Companies and individuals can offer their home or property to others looking for somewhere to stay. The company has completely disrupted the online accommodation booking industry in recent years and is just the type of business the managers of this fund aim to invest in. We found a lovely two-cottage property with a private pool and wonderful hosts.

Travel

We then used On the Beach Group to search for some cheap flights that wouldn’t demand we get up at an ungodly hour. A top ten holding in Marlborough Special Situations, its a UK-based travel retailer specialising in short and medium haul holidays to Europe.

We chose a flight from Gatwick – a bond holding in AXA Sterling Credit Short Duration, which matures in 2024. Airports, like other companies, issue bonds in order to raise money – usually to improve their infrastructure (terminals or runaways). The airline we chose was Easyjet, which is a top ten holding in Man GLG UK Income. The British low-cost airline now has domestic and international scheduled services on over 1,000 routes in more than 30 countries.

2019: Centre Parcs and Disneyland Paris

This year, it’s not so relaxing. A week of bike rides, swimming, Mickey Mouse and more Princesses than my husband cares to contemplate.

Accommodation

I’ve cheated a bit here. AXA Sterling Credit Short Duration also owns Centre Parcs UK. Centre Parcs Europe is actually owned and run by another company – but it’s close enough! This is another bond holding for the fund which also matures in 2024.

We have a week at “Les Villages Nature”, with a two-day pass to Disneyland Paris. LF Miton US Opportunities fund invested in Disney just last month (June 2019). A global leader in producing high quality, branded, family entertainment, the managers of this fund expect its Direct-to-Consumer & International business to be the engine for accelerating top-line growth (primarily through the roll-out of Disney+) with its earnings outlook enhanced by strong new movie releases and expansion of the Parks and Resorts segment.

Travel

DP World, a global port operator, announced that it had closed the transaction to acquire P&O Ferries on 2 July 2019. In its acquisition presentation, the company said that it aims to offer clients the full breadth of “beyond the port” services. “P&O Ferries adds a market-leading Roll-on Roll-off business, while P&O Ferrymasters adds a complementary European supply chain solutions provider.” A DP World convertible bond is a top ten holding in Brooks Macdonald Defensive Capital fund.

For those who perhaps suffer from sea-sickness, the other transport option is, of course, Eurostar – the preferred method of transport for James Sym, manager of Schroder European Alpha Income. James told us about his travels to the continent in his recent podcast.

Paying for it all…

And of course, without my good friends Mr Visa and Mr Mastercard, very little of this would be possible. Both are top ten holdings in Brown Advisory Global Leaders fund, and occupy a prominent position in my purse…

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