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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 23/05/2017
104.72p
Accumulation Shares
Income Shares
103.34p
Fund Size
£78M

April 2017

The UK snap election call triggered a sharp appreciation in sterling to the detriment of non-sterling returns earned in this global portfolio.

Any strength is likely to prove ephemeral. The UK has a substantial fiscal and current account deficit and is unlikely to have a structurally strong currency even before the effects of Brexit are considered. Longer-term, diversifying away from sterling is still likely to have some merit.

We added Accenture to the portfolio. It benefits from the need to manage the massive technological changes affecting global companies without choosing which technology will be the long-term winner. An asset-light but brain-heavy business model delivers outstanding financial productivity (10 year average ROCE of 46%), strong customer captivity (97 of their top 100 clients have been with them for 10 years) predictability and robust pricing. (Source : Bloomberg, company filings)

We invested in this unindebted company with a 6.0% growing free cash flow yield supporting a 2.2% prospective dividend yield that has compounded at 12.4% over the last 5 years. A huge total addressable market and high returns on capital delivered by a conservatively financed business with a commitment to shareholder returns makes for a rare global equity income opportunity.

 

 

 

Top 10 HoldingsFund (%)
Novartis 4.0
Philip Morris 3.9
Microsoft 3.7
Altria 3.6
Coca-Cola 3.3
Unilever 3.2
Roche Holdings 3.1
Japan Tobacco 3.0
McDonald's 2.9
Wells Fargo 2.9
Total Top 10 33.6
29 other holdings 60.1
Cash & equivalent 6.3
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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