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 +0.9% during the month compared to +2.5% for the IA Global (TR) sector. Over the second quarter your Fund returned +14.7% versus +19.4% for the IA Global (TR). And for the first half of the year the returns for the Fund and the sector are +6.6% and +0.8% respectively.

The top five contributors to the Fund’s returns in the quarter came from PayPal, Microsoft, Intuit, Alphabet and Experian. All stand to benefit from the accelerated shift towards a digital service economy, whether it be for payments, software, communications or e-commerce. In a broad-based rebound for stock markets, there were just two detractors to the Fund’s absolute returns in the quarter, both minor, and coming from the residual holdings in Wells Fargo and Philip Morris International. Among the quarter’s other bottom five contributors were Altria, Diageo and Fiserv, all of which were comparatively dull.

By our standards the last six months has been marked by heightened asset turnover for the Fund. During the quarter we sold out of the small, legacy holdings in Wells Fargo and reduced positions in Altria and Fiserv. A new investment was made in S&P Global, a financial services company we have followed closely and admired for many years. The company is a unique collection of data and analytics businesses which span bonds, equities, and commodities. S&P has high levels of recurring revenue, margins are extremely high and the group requires little additional capital to grow.

The pandemic has been met by enormous fiscal and monetary stimulus, and takes place against a backdrop of technological and social upheaval. All businesses must adapt. Recent actions further concentrate the Fund’s capital in those companies where we have greatest confidence in their capacity for long-term growth.


Fund Details
Total Gross Assets: £110,028,774 (As at 30.06.20)
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 18 – Dec 19 Dec 17 – Dec 18 Dec 16 – Dec 17 Dec 15 – Dec 16 Dec 14 – Dec 15
Electric & General Investment Fund 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.