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 -2.1% during the month compared to -5.4% for the MSCI World Index NR (£).

Intuit has been one of the most successful investments for the Fund for the past 3 years. In common with other investments in enterprise software companies (Microsoft, Fiserv and Sage), Intuit supplies essential accounting services to small businesses and benefits from the strong network effects and high switching costs of being an embedded service provider. Intuit has two major business units: the consumer business Turbo Tax which helps complete 27% of the tax returns filed in the US, and QuickBooks which provides accounting solutions to small businesses. Intuit launched QuickBooks online back in 2013 and today more than 80% of Intuit’s QuickBooks customers choose the online cloud offering rather than desktop. International subscribers (ex US) represent ~23% of the QuickBooks Online customer base. In 2014 Intuit took the brave decision to move applications on to Amazon’s AWS cloud platform, thereby reducing the need to have their own huge server base to hold customers’ data. Intuit’s capital expenditure has subsequently fallen and free cash flow has grown materially. Intuit has managed the move to online more effectively than their UK peer Sage (which has been reduced in the Fund over the past two years) and profits and cash flows have grown annually in the teens for over 10 years. The shares have substantially re-rated and trade on a free cash flow yield of just under 4%. Intuit remains a core holding in the Fund.

Fund Details
Total Gross Assets: £96,259,975 (As at 31.10.18)
Dealing: Daily
NAV Frequency: Daily
Legal Status: Open Ended Investment Company
IMA Sector: Global
Dividends: February and August
Investment Manager: Troy Asset Management Limited
Authorised Corporate Director: Carvetian Capital Management Limited