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 22/03/2018|
The Fund returned -3.0% during the month compared to -1.1% for the MSCI World Index NR (£).
We sold our investment in Sysco during the month. This represented a most unusual event that we are likely to become more used to in the future. As a reminder, Sysco is a distributor of food and related products almost exclusively in the US. Although a low margin business, high asset turn has allowed the company to earn substantial returns which have funded consistent dividend growth for 47 years! So why the sale? Earlier this year Amazon bought Whole Foods, announcing a clear intention to enter the food business – Sysco shares fell precipitously on the day. To disrupt an entrenched business such as Sysco is likely to take a long time and a significant capital commitment – the reason we waited patiently for the Sysco share price to recover before selling – but we must recognise that the competitive landscape has changed.
To paraphrase the CEO of Amazon, Jeff Bezos, Sysco’s margin is Amazon’s opportunity and with such slim operating margins to defend, this is potentially very problematic.
Thus a business that has been an extremely consistent performer for decades is now threatened by technological disruption. It will not be the last.
The recent fall in many of our favoured high-quality companies has afforded us an opportunity to add to our holdings, underscoring our confidence in the long- term attractions of these businesses. Additions included Unilever, RELX, Hershey, Johnson & Johnson, PepsiCo, Philip Morris and Procter & Gamble.
|Top 10 Holdings||Fund (%)|
|Procter & Gamble||3.5|
|Total Top 10||35.5|
|30 other holdings||63.4|
|Cash & equivalent||1.1|
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)