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 -3.4% during the month compared to -2.0% for the IA Global (TR) sector. The Fund’s performance has been negatively impacted over the past two months by a shift in market emphasis in favour of so-called value shares. A number of the Fund’s core holdings have lagged. This shift was marked in the UK as the recovery in sterling has weighed on UK-domiciled multinational investments.

American Express is often perceived as cyclical because consumer spending and credit card losses naturally vary through the economic cycle. A recent meeting with the company’s Chief Finance Officer focussed on the more structural drivers of Amex’s growth. Together with PayPal and Visa, Amex benefits from the inevitable substitution of cash and cheque transactions by digital payment methods, a trend that’s accelerated by offline ‘tap-and-pay’ technology and the global growth of e-commerce. Even in Amex’s primary domestic market, card payments are responsible for ~60% of consumer transactions, leaving substantial room for future expansion. Amex also has a fast-growing presence in less-penetrated overseas geographies and a leading card business serving small and medium-sized commercial customers. In total, the company derives ~80% of its revenues from transaction and card-related fees. Lending activities are a relatively small part of its business mix. Amex has delivered broad-based quarterly revenue growth of +8% to +10% over the last two years, demonstrating the continued relevance of its range of premium credit card services. This rate of growth may slow for macro-economic reasons, and loan losses will inevitably rise from their historically subdued levels. Over the full course of the cycle, however, we see Amex delivering sustainable growth in earnings at high returns on equity. Its shares remain attractively valued on this basis.

Fund Details
Total Gross Assets: £102,755,079 (As at 31.10.19)
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

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

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.