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
|'O' Share Class||Price 17/07/2018|
The Fund returned +2.8% during the month compared to +0.7% for the MSCI World Index NR (£).
The positive absolute and relative return was driven by a recovery in the consumer goods sector, with companies such as Pepsico, Procter & Gamble and Clorox making a meaningful contribution as well as recent laggards Japan Tobacco and Imperial Brands. A recovery in healthcare led by Novartis and Roche, which are both large investments in the Fund helped and most impactful to performance, was bid speculation in relation to our holding in Inmarsat which appreciated by 46.8% in June.
This month we attended a conference focusing on consumer companies. We continue to have faith, selectively, in these business models owing to durable competitive advantages they enjoy. This combined with relatively limited capital requirements, should continue to drive returns. Benno Dorer, the highly regarded CEO of Clorox (a portfolio company), reminded us that every year investors worried about something.
The list includes the changing tastes of millennials, the influence of Amazon, technological disruption and the death of brands. There is some merit in all of these but not enough to outweigh the inherent attractions of these businesses.
Durability comes from hard-to-replicate attributes such as scale, depth and breadth of distribution, as well as consistency and reliability which become embedded in consumers’ minds via the brand. We think this dynamic remains intact. Further we find valuations to be more attractive than for some time meaning that reliable operating performance can be translated into returns to shareholders. This sector remains a material part of the portfolio and will likely form the bedrock of the growing income stream and capital growth we are seeking to deliver for years to come.
|Top 10 Holdings||Fund (%)|
|Procter & Gamble||3.6|
|Total Top 10||36.6|
|30 other holdings||62.4|
|Cash & equivalent||1.0|
How to Invest
You may invest directly, via a broker or adviser, or through a number of online fund platforms.
- Fund Manager
- Inception Date
- Available Share Class
O, I, S
- ISIN (O Class)
- Bloomberg (O Class)
- Sedol (O Class)