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 -0.6% during the month compared to -0.2% for the IA Global (TR) sector.

Speculative behaviour was a feature of stock markets as we exited 2020 and reached maniacal levels in January. Share prices surged for otherwise troubled businesses. The Fund’s collection of highly profitable and growing companies languished in comparison. This provided an opportunity to make several improvements to the portfolio.

The Fund exited investments in Colgate-Palmolive, PepsiCo and Philip Morris International. All three are fine companies, but their maturity results in relatively modest expectations for long-term growth. In their place, the Fund purchased shares in Facebook, Booking Holdings, the online travel agent, and a third company to be discussed in detail once it becomes a more material part of the portfolio. In addition, the Fund significantly increased its existing holding in Fiserv, the payments and financial technology firm. These are all soundly financed companies and highly financially productive, generating excess cash flows as a percentage of sales greater than 20%. Moreover, they benefit from durable trends towards e-commerce and digital payments, which support long-term growth rates for revenue and earnings that exceed those of the companies that they replace. In the shorter term, Booking, Facebook, and Fiserv stand to recover from the impact of the pandemic as conditions improve for travel, advertising and offline payments. Finally, these companies are available at prices that we assess as attractive for the quality and growth of their cash flows.

These changes follow a broader pattern over the last few years as the Fund divests several strong but slower growing businesses, often at rich valuations, in favour of high-quality companies capable of more dynamic rates of growth. These actions aim to enhance future returns and ensure the Fund is responsive to a world being reshaped by technology and changing consumer attitudes.

Fund Details
Total Gross Assets: £105,640,549 (As at 31.01.21)
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

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.