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 -3.8% during the month compared to -3.9% for the MSCI World Index NR (£).

The Fund has initiated a new holding in L’Oréal, the world’s largest beauty company. L’Oréal is one of the more exceptional companies in our investment universe and encapsulates many of the attributes we seek in our investments. Founded in 1909, with a long-term shareholder in the Bettencourt Meyers family, L’Oréal is a global company devoted purely to beauty categories (cosmetics, skin care and hair care). The company combines the attributes of scale with a nimble and entrepreneurial organisation that has diversity across regions, brands and product areas. Revenues have grown by between 3% and 5% over the past 20 years and future growth is underpinned by strong product innovation and increased consumer spending in developing countries. Growth is sustained by a consistent approach to investment. L’Oréal spends 3% of sales every year on R&D, ahead of its peers by some way, and the company is the biggest advertiser in the world. It also regularly acquires small and upcoming brands that it can take internationally. E-commerce represents 8% of revenues, up +34% in 2017, and sales are growing in emerging markets at double-digit rates. Operating margins are 17%, and expanding, and returns on equity and capital are in the high teens. L’Oréal’s shares, like its premium products, do not come at a bargain price, but adjusting for net cash and the 9% stake in French pharmaceutical company Sanofi, the shares trade at a small premium to global peers.


Fund Details
Total Gross Assets: £91,758,807 (As at 31.03.18)
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