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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 16/11/2018
Accumulation Shares
Income Shares
Fund Size
£123M (31/10/18)

October 2018

The Fund returned +0.2% during the month compared to -5.4% for the MSCI World Index NR (£).

The concerns we have expressed about the investment backdrop, and for which we are positioned, are beginning to be evident. The proximate cause for the sell-off has been cited as trade tensions between the US and China, the ongoing back up in bond yields or weakening economic growth outside the US. More likely, we think, is the changing of the monetary policy regime in the US from being highly accommodative to more restrictive at a time of elevated valuations. Thus we maintain our cautious stance pending better prices.

During the month we had an update from portfolio holding Clorox. This was intriguing as although the results were fine the shares sold off pretty aggressively before recovering.

The cause seemed to be the announcement that Clorox would suspend the repurchasing of its own shares, resulting in a marginally lower earnings per share forecast (owing of course to there being more shares in issue than would otherwise have been the case). On the earnings call management were questioned repeatedly about this. Was it because of future acquisitions or some other reason? The response was very reassuring and highlighted the difference between sound long-term capital allocation and shorter-term EPS* chasing. The CFO stated:

But as it relates to share buybacks, look, my priority is to make smart decisions for how we use the cash of our shareholders. If I was focused on EPS accretion as the primary objective, we would have done an ASR [Accelerated Share Repurchase]. And that's not what we're doing… I'm investing my shareholders' cash and I'll be very thoughtful about how I do that”.

 If only all management teams were so clear-thinking and respectful of shareholders’ capital. Clorox remains a core holding.

*earnings per share

Top 10 HoldingsFund (%)
Novartis 4.8
PepsiCo 4.1
Procter & Gamble 3.9
GlaxoSmithKline 3.9
Coca-Cola 3.6
Roche Holding 3.6
Cisco 3.5
Johnson & Johnson 3.2
Hershey 3.2
Eversource Energy 3.1
Total Top 10 36.9
30 other holdings 58.9
Cash & equivalent 4.2
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
  • 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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