The Company’s investment objective is to seek to achieve long-term capital growth with some potential for income.


Investment Manager’s Commentary

Your Fund returned +0.9% during the month compared to +2.5% for the MSCI World Index NR (£). Year-to-date the Fund has returned +10.1% which compares with the Index return of +8.8%.

Over the summer period the Fund has been in the doldrums as holdings in the Consumer Staples sector have lagged. The Fund’s tobacco investments, in particular, experienced a sell-off following the announcement by the US Food and Drugs Administration of their aim to reduce nicotine levels in cigarettes. Regulation is part of life in the tobacco industry, but so is an oligopolistic structure, pricing power, strong profits, cash flows and consistent dividends. The overall weight of tobacco companies in the Fund has come down in the past eighteen months, reflecting less attractive valuations. Consumer Staples companies overall have been the biggest positive contributors to returns year to date and our tobacco shares remain core holdings in the Fund.

As discussed in the annual report the dividend for 2017 was 2% below the annual level of 2016. The key reasons for this slightly lower dividend were firstly the weakness of the US dollar in 2017 which negatively impacted the conversion of some of the Fund’s important dividend payments (Altria, Philip Morris and Microsoft for example). Secondly, the bid by Twenty-First Century Fox for Sky Plc has resulted in the omission of the Sky dividend which was due for payment in March 2017. Finally, we are keen to retain the flexibility to invest in companies which don’t yet pay a dividend but offer faster than average growth and profitability.

*Source: Troy, Bloomberg 31st August 2017


Fund Details
Total Gross Assets: £103,556,325
(As at 31.08.17)
Dealing: Daily
NAV Frequency: Daily
Legal Status: Open Ended Investment Company
IMA Sector: Global
Dividends: February and August
Investment Manager: Troy Asset Management Limited
Authorised Corporate Director: Carvetian Capital Management Limited