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 -0.3% during the month compared to +0.5% for the IA Global (TR) sector.

Shares in L’Oréal were first bought for the Fund early in 2018. The company exemplifies many of the characteristics we value highly in our investments. It is managed for the very long term, overseen by the Bettencourt family and Nestlé, its controlling shareholders, with a rock-solid balance sheet and an ingrained creative and entrepreneurial culture. Over decades, the company has demonstrated the flexibility to adapt to outgrow one of the most dynamic consumer categories globally. Finally, and in addition to attractive financial metrics, L’Oréal has an admirable ESG* record. This was recently recognised by the Carbon Disclosure Project (CDP) which once again awarded the company a triple ‘A’ rating for its many environmental initiatives.

L’Oréal’s capacity for survival and innovation came to the fore in 2020. With a -75% reduction in global travel and the closure of many retail outlets, the company’s longstanding investments in e-commerce and digital marketing paid off handsomely. E-commerce represented over a quarter of total revenues in 2020, growing +62%, and helped the group take market share in all parts of the business. L’Oréal’s determined focus on premium skincare and active cosmetics has transformed the organisation and reduced its dependence on slower growing and lower margin mass-market segments. Critically, this shift positions L’Oréal well in China, which is the biggest skincare market on the planet and a huge engine for future growth. L’Oréal’s revenue in China bucked the global trend and grew +27% last year with over 60% of sales generated online.

In all our many years of following L’Oréal, the shares never come at a bargain price. Today is no exception. We have every confidence, however, that just like the company’s consumers, the shares are ‘worth it.’

*Environmental, Social and Corporate Governance.


Fund Details
Total Gross Assets: £105,507,389 (As at 28.02.21)
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.