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 +7.0% during the month compared to +3.7% for the IA Global (TR) sector.

A meeting with Microsoft in June reaffirmed to us why, despite a clear renaissance, the company’s prospects remain bright and, in our view, underappreciated. This perspective is informed by an understanding of how the structural shift towards cloud computing continues to improve the company’s opportunities for growth. Firstly, the migration of existing workloads from on-premise to public cloud platforms, including Microsoft’s Azure, remains immature. Around a quarter of all enterprise software is consumed in the cloud, and this falls to just ~10% for more compute-intensive data and analytics workloads. With over $30bn in estimated annual revenues, growing +46% in the latest quarter, Azure’s rapid adoption suggests a vast addressable market, running well into the trillions of dollars. Secondly, the cloud is creating opportunities that did not exist to the same extent in an on-premise world. For instance, the proliferation in the type and severity of online threats has powered the annual sales of Microsoft’s security products and services to exceed $10bn, with growth of over +40%. Finally, Microsoft’s unrivalled breadth allows for unique integration of its cloud-based products and services, covering everything from productivity apps, infrastructure services, security and communications. For example, the daily engagement of over 145m users of Teams strengthens the utility of Microsoft’s core Office suite, allowing Microsoft to take greater market share as IT budgets grow.

Microsoft’s stock is no longer the bargain it was when Troy first became an investor over a decade ago. However, a current cash flow yield of a little below 3% can combine with annual growth of cash flow per share in the teens to deliver attractive double-digit prospective annualised shareholder returns.


Fund Details
Total Gross Assets: £115,916,470 (As at 30.06.21)
Dealing: Daily
NAV Frequency: Daily
Legal Status: Open Ended Investment Company
Investment Association Sector: Global
Dividend Payment Dates: End of February and August
Investment Manager: Troy Asset Management Limited
Authorised Corporate Director: Carvetian Capital Management Limited


Fund Performance

Dec 19 – Dec 20 Dec 18 – Dec 19 Dec 17 – Dec 18 Dec 16 – Dec 17 Dec 15 – Dec 16 Dec 14 – Dec 15
Electric & General Investment Fund 10.5% 24.6% -1.2% 11.3% 20.1% 13.6%

Past performance is not a guide to the future. The value of the shares and the income from them can go down as well as up and you may not get back the full amount originally invested. Source: Yealand Administration Limited, NAV to NAV in sterling with net income reinvested. Returns are shown net of annual management charge, other expenses and net income reinvested. Returns do not include the effect of initial charges.


Investment Objective and Policy

The Company’s investment objective is to seek to achieve long term (at least 5 years) capital growth with some potential for income.

To achieve the investment objective, the Company’s investment policy is to invest principally (at least 80%) in a portfolio of global equities, and may also invest in other transferable securities, bonds (both corporate and government debt securities), collective investment schemes (“CIS”), warrants, money market instruments, cash, near cash and deposits. The Company may borrow and may enter into underwriting arrangements. It is the ACD’s intention that derivatives and forward currency transactions will only be used for the purposes of efficient portfolio management, including hedging, as defined by the Regulations.

The Company is actively managed and has, with the exception of the above noted minimum, no limit to which it can be invested in each sector or asset type, nor is there any particular geographic focus. The Portfolio Manager has full flexibility to adjust the proportion of the property of the Company depending on their view of market conditions and the assets which it believes are most likely to achieve the Company’s investment objective. From time to time the liquidity of the Company may be increased substantially if judged to be in the interests of investors.

The Company may invest in CIS which have different investment strategies or restrictions than the Company, including the ability to invest in derivatives for investment purposes and to gain exposure to assets which are not expressly listed above. Investment in CIS will usually be limited to those which invest primarily in the assets listed above and without exception, CIS will only be held in so far as the rules permit the Company to gain exposure to the assets held by those CIS.

A Glossary of Definitions which provides definitions to some of the technical language used on this website is available from www.carvetian.com/policies.


Comparator Benchmark

To gauge the relative performance of the Fund, Shareholders may compare the Fund’s performance against the Investment Association’s Global Sector. This is not a performance target nor constrains the way in which the Fund is managed. For further information on the Sector and its intended use, please refer to the Fund’s Prospectus.