# Caledonia Investments must close its discount

> The wealthy Cayzer family's investment trust delivers returns but trades at a stubborn 35% discount to net asset value.
- Title: Caledonia Investments must close its discount · MoneyWeek
- Summary: The wealthy Cayzer family's investment trust delivers returns but trades at a stubborn 35% discount to net asset value. Caledonia Investments has met its…
- Keywords: caledonia investments, cayzer family, investment trusts, net asset value, discount, private equity, air-serv europe, butcombe, blue diamond, moneyweek, Caledonia, Investments
- Source: MoneyWeek — https://moneyweek.com/investments/funds/caledonia-investments-must-close-the-discount
- Published: 2026-09-18T14:00:00+00:00
- Read time: 1 min
- Topics: caledonia investments, cayzer family, investment trusts, net asset value, discount, private equity, air-serv europe, butcombe, blue diamond, moneyweek
## A family fortune vehicle
Caledonia Investments is a £3.1 billion trust founded by the Cayzer family, which once owned a major shipping empire. The family still owns 51% of the fund.
## Solid returns, terrible discount
The trust aims to beat inflation by 3% to 6% and has hit that target over ten years. But its share price trades at a 35% discount to net asset value.
## Three equal investment pools
Caledonia splits its portfolio roughly equally: quoted equity at 32%, private equity funds at 32%, and direct private capital holdings at 25%.
## Direct ownership advantage
The private capital pool owns ten UK mid-market businesses outright. This gives Caledonia control without third-party fees, unlike most wealth protection trusts.
## AIR-serv drives returns
The largest holding is AIR-serv Europe, which makes forecourt equipment. Acquired in 2023 for £143 million, it's now worth £215 million and paid a £24.5 million dividend.
## Buybacks haven't worked
Management has spent £30.6 million buying back shares at a 37% average discount since April. This boosted NAV by 3.5p per share, but the discount remains wide.

> More work is needed here.
## Built for the next crash
Caledonia's diversification means it will lag in rising markets. The real test comes in the next crash, when it should outperform AI-focused investors.

> The test will come in the next crash, when we see if it outperforms investors who increasingly seem besotted with the AI bubble.
## Key takeaway

Caledonia Investments has met its long-term performance targets but trades at a 35% discount, requiring more aggressive action to unlock shareholder value.