Trojan Global Income Fund

February was a busy month for corporate results. There was particular scrutiny on the data and information services businesses that have found themselves on the wrong side of the AI disruption narrative. It was encouraging to see strong full-year 2025 numbers and guidance from both London Stock Exchange Group (LSEG) and RELX, as well as robust defenses by management of each business’s many advantages. Share prices in both fell sharply at the start of the month but responded positively to these updates, with each rallying materially from their early February lows.

Uncertainty about the disruptive impacts of AI is very high. Over the month, we saw market fears spread to many varied businesses and industries. We have spent considerable time thinking about the risks and opportunities from AI across the Fund’s holdings. We acknowledge that many questions are unanswerable in the near term. However, as corroborated by commentary from the large LLM companies themselves, we do believe that proprietary, hard-to-replicate data remains a strong source of moat and value. Perhaps even more so in the data-intensive world of AI models and agents. In this light, we see the Fund’s largest digital holdings – RELX, LSEG and Experian – as well positioned. On top of valuable datasets, they have deep incumbency in mission critical industries, with embedded workflows and long-standing positions of trust.

Importantly, valuations across this group are considerably more attractive than they were a year ago, when we were trimming exposure on valuation grounds. Reflecting this improved balance of risk and reward, we added to the RELX and Amadeus holdings during the month. These additions were funded by trimming positions in several more highly rated “physical” businesses, including Roche, InterContinental Hotels Group, Rentokil and Unilever, where valuations appeared fuller on both absolute and relative bases.

In the month, we also initiated a new overseas holding in Chubb, one of the largest property and casualty insurers globally. We are attracted to its diverse business mix, dominant positions in attractive niches, and its highly disciplined underwriting culture. Currently valued at c.12x earnings, we believe it represents an attractive entry point into a high-quality company capable of robust growth in earnings and returns to shareholders.