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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 23/02/2017
102.68p
Accumulation Shares
Income Shares
102.12p
Fund Size
£68M

January 2017

“Alternative facts” may be preferable to the reality of the souring political atmosphere in the US.

Populist rhetoric with market-friendly policies have been taken positively by equity markets so far. Bond markets were less sure with US 10 year Treasuries little changed over the month but with notable weakness in peripheral European bonds. The US dollar lost over 3% on a trade weighted basis* on suggestions from the new administration that other currencies are too weak.

Such backing and filling in markets is not surprising given the violence of recent moves whose certainty must be questioned in time.

We continuously strive to upgrade the quality and/or value of the Fund to underpin the income generated. One such idea is IG Group which we have purchased funded from a part-sale of Centrica. This is a material improvement in the financial productivity of the portfolio, a reduction in debt but with no curtailment in the expected income. 

Charlotte Yonge, a member of the investment team explains: IG Group is the largest CFD (contract-for-difference) and spread betting platform in the UK.  With a 5-year average return on invested capital of 29%*, net cash on the balance sheet and a business model with powerful network effects, this company has been on Troy’s radar for several years.  The shares had fallen over 40% following FCA proposals for lower leverage limits for retail CFD clients.  These proposals are targeted at new entrants to the market and the associated inappropriate selling tactics to inexperienced traders.  By contrast, 73% of IG’s clients have been trading with IG for over a year and the company’s economics are aligned with its client base.  We think the share price reaction ignores the potential benefits of a more consolidated market and offers a dividend yield of c.6%. 

*(Source Bloomberg)

 

 

 

Top 10 HoldingsFund (%)
Altria 4.0
Philip Morris 4.0
Novartis 3.8
Procter & Gamble 3.4
Roche Holdings 3.2
Microsoft  3.1
Unilever 3.0
Sysco Corp 2.8
Nestlé 2.8
Japan Tobacco 2.8
Total Top 10 32.9
28 other holdings 54.2
Cash & equivalent 12.9
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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