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 +1.0% during the month compared to +2.1% for the IA Global (TR) sector.

The past couple of weeks has seen the publication of third quarter results for many of the Fund’s investments. Financial markets are in an unforgiving mood and share price volatility has been savage, particularly amongst the Fund’s technology-related businesses. Many face a perfect storm of a difficult macro-economic backdrop, a very strong US dollar, unfavourable comparisons to pandemic-fuelled results last year, and in several cases, sharply higher operational and capital expenditures. This has led to material weakness in the share prices of several of the Fund’s holdings, including Microsoft and Alphabet. Meta has been especially painful. By contrast, results from Visa, Mastercard, Moody’s, S&P Global and Booking Holdings
were well received.

The operating environment for companies has deteriorated in recent months. The CEO of Microsoft, Satya Nadella, encapsulated the new reality well when he said his company’s job now is ‘to help customers do more with less’. The Fund invests in exceptionally financially productive businesses whose goods and services are essential to their customers lives. They are not immune from macro-economics, but these are special companies and many of them have been through much more challenging environments than the one we find ourselves in today . They are growing, innovating, generating very high cash flow margins and have extremely strong balance sheets. This is a tough environment to be a long-term equity investor, but as valuations fall, we are increasingly encouraged that patience will be rewarded.


Fund Details
Total Gross Assets: £95,859,162 (As at 31.10.22)
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: Yealand Fund Services Limited


Fund Performance

Dec 20 – Dec 21 Dec 19 – Dec 20 Dec 18 – Dec 19 Dec 17 – Dec 18 Dec 16 – Dec 17 Dec 15 – Dec 16
Electric & General Investment Fund 23.5% 10.5% 24.6% -1.2% 11.3% 20.1%

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 Fund Services 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.yealand.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.