David Fuller's view My personal long-term stock market investments were never intended to be a model portfolio, as it would be a question of model for whom? Fullermoney comments on a significant number of individual equities over the course of a year, because we are interested in global themes and because we have subscribers all over the world. These range from investment managers, analysts, strategists and private investors who are drawn to this service because of its global coverage and Empowerment Through Knowledge theme. My equity portfolio feels appropriate for me and remains invested entirely in Fullermoney secular themes.

While I do not hover over the individual weightings in my personal portfolio there is no doubt as to my largest position, due to its good performance since the main purchases were made in 2003. My only other purchases of this investment trust (closed-end fund) were in response to subscription shares offered last year.

1. JPMorgan Indian Investment Trust (JII LN) - (monthly, weekly & daily) - JII and India have been relative performers during the cyclical bull trend following the October 2008 low and both have extended their overall upward trends recently, ahead of developed country markets. India is not for everyone but it has been a favourite of mine since 2Q 2003 and is likely to remain so, not least while the current uptrend remains intact, for all the reasons discussed in Fullermoney over many years. The current technical action is certainly solid and not overextended relative to its trend mean represented by the 200-day moving average. However I do have some concerns over inflation and valuations which are somewhat higher than many other developing (progressing) markets, although not worryingly so. JII does not pay a dividend. Its discount to NAV has declined to 6.32%. A search under 'India' in the Library will provide a list of many other funds, ITs and ETFs, plus some informative sector indices.

2. Royal Dutch Shell 'B' Ord (RDSB LN) - (monthly, weekly & daily) - I bought RDS(B) for my accounts in June, with the majority of the proceeds coming from my sale of Lihir Gold which was subsequently taken over. Lihir itself had taken over Ballarat Gold, which was my original position. I regard RDS(B) as the most conservative investment in my equity portfolio - the share has done nothing over the last decade, but it does yield over 6%, the historic PER is currently 10.85 and the estimated PER is 8.53. Also, energy is a Fullermoney theme which had been absent from my portfolio for several years. I think RDS(B) could eventually perform but this may require patience. The share price was choppy in 1H 2008 when the oil price spiked higher but it did not reflect that move, partly because long-term contracts specify that most of the profit above a specific price for crude oil defaults to the producer country. BP's accident dragged RDS and other oil companies lower, enabling us to buy more cheaply but has also delayed offshore drilling in USA territorial waters. Nevertheless RDS has valuable leases, a solid business and BP's problems should increase interest in Royal Dutch Shell on the basis of yield alone.

3. Aberdeen New Thai Investment Trust (ANW LN) - (monthly, weekly & daily) - This investment trust suffered for several years due to political problems but I held on because it was exceptionally cheap and well positioned to benefit from the world's most dynamic growth region, as a supplier of commodities, a popular tourist destination and as a low-cost manufacturing centre. That patience has been rewarded more recently, nudging ANW's weighting upwards in my portfolio. Is it therefore time to reconsider my options? Possibly, as a pan Asian or pan emerging markets fund would spread the small, single-country risk without losing the growth opportunity. Both ANW and Thailand's SET Index have accelerated higher recently, becoming overextended relative to their MA means. However valuations, including a significant discount to NAV have so far prevented me from seriously considering a reduction of this position. Performance has obviously made valuations less of a bargain recently but the SET still has a respectable yield of 3.61% and the historic PER of 14.42 does not indicate a bubble. When I reviewed ANW's top-10 holdings, the yield was even better and more than enough to maintain its rising yield, currently listed at 2.5% in my statements. The discount to NAV was a whopping 22% in the second half of August before narrowing to 16.46 today, so someone else clearly thought ANW was a bargain last week. If this moves below 10 in a rising market, as we last saw in October 2009, I might have a further reason for lightening. Meanwhile, for better or worse, ANW is not a position that keeps me awake at night.

4. Atlantis China Healthcare Fund (ATCHLTH ID) - (monthly, weekly & daily) - I switched into Healthcare from the Atlantis New China Fortune Fund last month, feeling that it could achieve a somewhat higher performance, despite the additional performance fee of 20% rather than 15%. Gains since the October 2008 low are very respectable given the quiet ranging of Chinese equity indices and I think this could be a good fund for the next bull phase, which may have actually commences as investors look beyond the IPO bulge which I have often mentioned.

5. China Mobile Hong Kong (941 HK) - (monthly, weekly & daily) was purchased last month with the proceeds from my sale of the BlackRock Gold & General Fund, which caused a little surprise among subscribers. I still like BlackRock G&G, incidentally, and it is doing just fine but I felt I was lowering risk in my portfolio, albeit at the cost of some near-term performance. China Mobile yields 3.5% and I expect it will continue to nudge the dividend higher each year.

6. Rio Tinto (RIO LN) - (monthly, weekly & daily) - The wonderful, sometimes chaotic process of democracy has had its say in Australia and the Labor/Green coalition means that the mining levy is back on the table. This is a setback for Australian miners of an uncertain duration. However I think the long-term fundamental story is terrific - look at Rio's world class portfolio of assets which is likely to grow in value over the next several years - so I will hold but probably not increase my long position in Rio at this time. The chart pattern remains promising.

7. BHP Billiton (BLT LN) - (monthly, weekly & daily) - The comments for Rio above also apply to BHP but this is a very different story due to the bid for Potash. I have no additional insight on this but would be pleasantly surprised if BHP succeeded at anything close to its opening offer and I hope it does not get into a bidding war for the fertilizer company. Here is Wikipedia on BHP.

8. BlackRock World Mining Trust (BRWM LN) - (monthly, weekly & daily) This is the best conservative way to play the mining sector in my view, given BlackRock's experienced management and world class mining portfolio. The chart action will remain positive while the sequence of higher reaction lows is maintained. I would expect BRWM to perform well if the global cyclical bull trend resumes in Q4, as I anticipate. It currently sells at a discount to NAV of almost 16%. Here is the latest Trustnet factsheet on BRWM.


9. iShares FTSE Xinhua China (FXC LN) - (monthly, weekly & daily) - This remains a sleeper, and I have continued to nibble in recent months. Valuations remain attractive and the lengthy trading range should support a good advance in the event of an upside breakout which I am hoping will occur before yearend.

10. Aberdeen New Dawn Investment Trust (ABD LN) - (monthly, weekly & daily) - I previously overestimated my weighting in ABD, probably because unlike a trading account, I monitor long-term investments via charts in my 'Favourites' section rather than online accounts or statements. And so much for my stated intention to add to ABD. Perhaps it was always doing too well when I was topping up ISA accounts or making an occasional portfolio switch. Anyway, Huge Young and his team have done a superb job and I note that his largest position by far as of 31st July 2010 was in India. ABD's discount to NAV is currently 7.35%.

I will review other positions in this portfolio before long.