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Trojan Fund

The investment objective of Trojan Fund is to achieve growth in capital and income in real terms over the longer term. The investment policy is to invest substantially in UK and overseas equities and fixed interest securities but Trojan Fund may also invest in collective investment schemes and money market instruments. 

In addition to the O share class referred to on this page, I & S Classes are also available. Please contact us for more information.

'O' Share Class Price 23/03/2017
302.75p
Accumulation Shares
Income Shares
249.89p
Fund Size
£3,834M

February 2017

Your Fund returned +2.0% during the month compared to +3.1% for the FTSE All-Share Index (TR).

It is unusual for us to comment on a company for two months in succession but the reference to our long-standing holding in Unilever last month was prior to the approach by Kraft Heinz to acquire the Anglo-Dutch company. 

We have in the past been censorious of Kraft Heinz’s radical approach to ‘zero-based budgeting’ (see Troy Investment Report No. 49).  Not all earnings are created equally, yet investors crave earnings expansion at all costs even if it makes managers turn their attention from ‘non-productive’ administrative fat towards the muscle and bone of R&D and advertising.  Innovation and entrepreneurial spirit are the correct response to lower growth.  Rising earnings from ‘efficiencies’ often flatter to deceive.  If companies look after shareholders alone, without considering other stakeholders such as customers and employees, they risk damaging the long-term sustainability of the business.  

 

At our meeting with Unilever CEO Paul Polman in January, he told us that Unilever’s approach to costs is different from 3G’s; Unilever approaches its zero-based budgeting with a growth mind-set.  Unilever did not need a deal whereas Kraft Heinz, with modest organic sales growth last year, exposed the shortcomings of its business model.  It is easier to grow sales by buying them.

Notwithstanding the announcement of weaker expected sales for many consumer goods businesses in 2017, the market has rewarded lower industry growth with perversely higher valuations.  For the time being, investment opportunities are fleeting.

 

 

 

 

Performance is calculated on a total return basis, net of fees, in sterling terms.

Source: Lipper, Capita Asset Services

The source of performance data has been changed.  This change may have resulted in variations from previously published performance figures.

Risk Analysis Since Launch (30th June 2001)FundIndex*
Total Return +229.9% +141.2%
Max Drawdown # -13.7% -45.6%
Best Month +8.9% +9.9%
Worst Month -4.7% -13.2%
Positive Months +67.7% +59.3%
Annualised Volatility +6.5% +13.8%

* FTSE All-Share Index (TR)

# Measures the worst investment period

Performance is calculated on a total return basis, net of fees, in sterling terms.
Top 10 HoldingsFund (%)
Gold Bullion Securities 6.8
British American Tobacco 3.9
Philip Morris 3.4
Microsoft 3.2
Altria 2.7
Coca-Cola 2.5
Imperial Oil 2.1
ETFS Physical Gold 2.1
Reynolds American 2.1
Berkshire Hathaway 2.0
Total Top 10 30.8
22 other holdings 38.9
Cash & equivalent 30.3
Total 100.0

 

Past performance is not necessarily a guide to future performance. The value of a fund and any income from it may go down as well as up and investors may get back less than they invested. Changes in rates of exchange may cause the value of investments to go up or down. This data is provided for information only and should not be reproduced, published or disseminated in any manner. Although Troy considers the data to be reliable, no warranty is given as to its accuracy or completeness. Any comparisons against indices are for illustrative purposes only.

How to Invest

You may invest directly, via a broker or adviser, or through a number of online fund platforms.

Find Out More

Key Facts

  • Fund Manager
    Sebastian Lyon
  • Assistant Fund Manager
    Sean Beck
  • Inception Date
    31/05/2001
  • Currency
    £ Sterling
  • Available Share Class
    O, I, S
  • ISIN (O Class)
    GB00B01BP952 (Acc)
    GB0034243732 (Inc)
  • Bloomberg (O Class)
    CFTROJA_LN (Acc)
    CFTROJI_LN (Inc)
  • Sedol (O Class)
    B01BP95 (Acc)
    3424373 (Inc)

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