The Company’s investment objective is to seek to achieve long-term capital growth with some potential for income.


Investment Manager’s Commentary

Experian and Alcon were the Fund’s top two contributors to returns in the month as their shares increased +11.2% and +13.2% respectively. Both companies reported encouraging financial results, which were all the more gratifying because they validate many of the reasons for the Fund’s longstanding investments in their shares. Experian and Alcon each reported solid underlying revenue growth of +7% (when adjusting for the impact of foreign exchange movements), defying fears of a slowdown or competitive pressures. Their steady growth is testament to the essential quality of these companies’ products and services, the breadth and competitiveness of their product portfolios, and a shared commitment to continuous innovation and customer service. Both companies have been in investment mode for several years, but as their new products reach critical mass, Alcon and Experian are now in a position to reinvest whilst expanding their profit margins at a faster rate than before. It was this scope for improved profitability that for a long time gave us confidence that the companies could justify the valuations ascribed to them – margins are, to a large degree, a ‘choice’ (see here for a more detailed discussion on this subject featuring Experian as a case study). It also gave us the confidence to add to the Fund’s investment in these companies when their shares languished in the past year.

The improved share-price performance for Alcon and Experian is somewhat bittersweet; the companies are more expensive today as their earnings power is better appreciated. Whilst we remain optimistic about their long-term prospects, seeing many years of operational improvement ahead, we trimmed both investments during the month as other ideas emerged.


Fund Details
Total Gross Assets: £110,372,752 (As at 31.05.24)
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 22 – Dec 23 Dec 21 – Dec 22 Dec 20 – Dec 21 Dec 19 – Dec 20 Dec 18 – Dec 19 Dec 17 – Dec 18
Electric & General Investment Fund 25.4% -17.5% 23.5% 10.5% 24.6% -1.2%

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.