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Trojan Global Income Fund

The investment objective of the Trojan Global Income Fund is to provide income with the potential for capital growth in the medium term. The fund’s policy is to invest substantially in equities globally. It may also invest in fixed interest securities, indices, deposits, collective investment schemes and money market instruments.

 Introducing the Fund                                                                  

 

Portfolio Positioning

'O' Share Class Price 20/09/2018
110.84p
Accumulation Shares
Income Shares
105.13p
Fund Size
£122M (31/08/18)

August 2018

The Fund returned +1.8% during the month compared to +2.2% for the MSCI World Index NR (£).

We had an update from portfolio investment Vonovia during the month. Vonovia is a predominantly a German residential real estate company conducting property and lease management, maintenance, modernisation and tenant assistance. In an environment characterised by a dearth of value in global capital markets and a tightening liquidity backdrop as quantitative easing is slowly reversed, this sector stands out as being outstanding value underpinned by a robust economy, immigration and urbanisation and a favourable monetary backdrop. It is rather remarkable that after rolling global real estate bubbles (most obviously in the US preceding the global financial crisis), residential property in Germany still trades at a discount to replacement cost. Further, while Germany remains part of the euro it is likely to have a lower interest rate than would otherwise be the case, owing to the need to set euro-wide rates despite disparate national economies. Of course if the eurozone were ever to break up, German assets would be likely to appreciate strongly in a newly minted Deutschmark.

Vonovia owns and manages a total of 394,000 units, making it the largest in the sector. Scale benefits drive cost efficiencies in property renovation and construction, whilst the company is increasingly selling peripheral services to tenants such as cable television and smart meters. Scale also confers favourable access to capital markets which has been used to fund a number of acquisitions. Consistent with this was recent equity raising that brings the loan-to-value ratio to a comfortable 43.9%. The shares trade on an 8.6% discount to EPRA* NAV per share (June 2018) and pay a 3.7% dividend yield. (Source: company accounts)        
*European Public Real Estate Association 

Top 10 HoldingsFund (%)
Novartis 4.6
PepsiCo 4.0
GlaxoSmithKline 3.8
Cisco 3.7
Roche Holding 3.7
Procter & Gamble 3.6
Microsoft 3.3
Medtronic 3.1
Paychex 3.1
Imperial Brands 3.1
Total Top 10 36.0
30 other holdings 59.3
Cash & equivalent 4.7
Total 100.0

 

How to Invest

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

Find Out More

  • Fund Manager
    James Harries
  • Inception Date
    01/11/2016
  • Currency
    £ Sterling
  • Available Share Class
    O, I, S
  • ISIN (O Class)
    GB00BD82KP33 (Acc)
    GB00BD82KQ40 (Inc)
  • Bloomberg (O Class)
    TGIFOAC_LN (Acc)
    TGIFOIN_LN (Inc)
  • Sedol (O Class)
    BD82KP33 (Acc)
    BD82KQ40 (Inc)

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