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 +1.8% during the month compared to +3.0% for the MSCI World Index NR (£).

Performance continues to lag the broader market as investments in areas traditionally considered more ‘defensive’, such as pharmaceuticals and consumer staples, trail more cyclical parts of the stock market. This sector rotation takes place against a backdrop of greater optimism for the global economic outlook and higher bond yields. It is typical market action for later phases of a bull market.
Tobacco stocks, often among the most defensive of defensives, were the biggest detractors during the month. Sector-specific issues combine with the aforementioned market rotation as greater regulatory scrutiny in the US has emerged together with rising uncertainty about the economics of Next Generation Products (novel alternatives to traditional conventional cigarettes). There has been a dramatic de-rating for the sector and valuations are now looking statistically cheap. The Fund’s tobacco stocks trade at a weighted average price-to-earnings ratio of less than 14x which compares favourably to the Fund’s overall average of 19x. Corporate earnings continue to grow in aggregate and at levels of financial productivity that exceed the Fund’s average. With a dividend yield of 4.9%, the companies also provide a substantial part of the Fund’s income, allowing us to invest in areas of the market which pay more modest dividends. The Fund’s investments in lower yielding stocks, American Express, Becton Dickinson, Intuit, Experian and Microsoft, all returned over 8% in the month.


Fund Details
Total Gross Assets: £89,534,874 (As at 30.04.18)
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