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 21/02/2018|
The Fund returned -2.4% during the month compared to +0.1% for the MSCI World Index NR (£).
Capital markets have recently become concerned about a rise in inflation, causing a selloff in global government bond markets. Consequently, our bond-like equity holdings have suffered, leading to underperformance. Time will tell how persistent such concerns prove to be. No action has been taken in the portfolio.
At the end of January, one of the Fund’s holdings, Dr Pepper Snapple Group, announced its intention to merge with Keurig Green Mountain, a speciality coffee producer. Current shareholders will receive a special dividend of $103 and keep their shares. Dr Pepper shares jumped some +26%, reflecting the economic value of the merger proposal.
We established a holding in Dr Pepper Snapple Group in September 2017. One of the main attractions of Dr Pepper is the straightforward and understandable business model centred on the repeat purchase of a favoured good by a consumer. Additionally, we noted that Dr Pepper had grown its dividend at 11% per annum over the last five years. As long-term investors, we were expecting to enjoy the benefit of this steady and reliable growth for years to come.
The newly merged entity will look quite different from the Dr Pepper of old. The new company will be significantly indebted, and the strategic rationale for the transaction is far from clear, at least at this stage. Therefore, we might be forced to part ways with Dr Pepper prematurely, against our wishes. We take only limited comfort in the short-term share price appreciation.
|Top 10 Holdings||Fund (%)|
|Total Top 10||35.1|
|31 other holdings||62.4|
|Cash & equivalent||2.5|
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)