Caledonia lags index

19th May 2010 08:18

Investment company Caledonia posted a 30% increase in assets during the past 12 months but remains cautious over the prospects for the current year in the UK and US.Total assets in the year to March rose to £1.18bn, with diluted NAV per share up to 2,034p. Both figures rose by 30.5%, some way short of the 46.7% increase in the FTSE All Share, which it put down to a recent widening of the share price discount.Caledonia recently switched the geographic mix of its investments to increase exposure to Asia because of the uncertainties in the West and repeated today it sees that as the way forward. "We re-affirmed our belief that this exposure will continue to give us good growth opportunities," it said."Our philosophy of taking significant stakes in well run companies continues to deliver long term performance. Although we anticipate there to be continuing good investment opportunities, economic conditions are fragile, particularly in the US and UK, and we remain cautious," chief executive Tim Ingram added.The dividend for the year rises by 4.4% to 35.3p.