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 -1.9% during the month compared to -0.2% for the MSCI World Index NR (£). Having performed so strongly in May it is no surprise to see the Fund give some of this back as markets rotated back towards more cyclical sectors.

Novartis was one of the better performing holdings in the Fund during the month. Longer-term total returns have also been good, although the shares have been somewhat disappointing over the last couple of years. Investor’s expectations have had to be scaled back as certain drug launches got off to a slow start and management were forced to reinvest in Alcon, its eye care division. These issues are being addressed and management have wide scope to realise value across the group. Novartis has a very large, diversified and highly profitable pharmaceuticals business that enjoys a relatively benign outlook for patent expiries. This strength and breadth tends to be undervalued, leading to positive surprises from its pipeline of new drugs. Last month, for instance, Novartis released encouraging highlights of a clinical trial for a cardiovascular drug that few analysts had anticipated. Elsewhere, Novartis is asset rich. It has options to sell a 37% stake in GlaxoSmithKline’s Consumer Healthcare division, a holding in Roche worth over CHF13bn, a promising position in the emerging field of biosimilars and the potential to spin out a repaired Alcon to its shareholders. As a result, we believe returns on capital and returns to shareholders can improve from here.

*Source: Troy, Bloomberg 30th June 2017


Fund Details
Total Gross Assets: £104,660,011
(As at 30.06.17)
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