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 +2.2% during the month compared to +3.5% for the MSCI World Index NR (£).

The month was a significant one for our healthcare holdings which suffered as US politicians, including the President, upped the ante on the sector ahead of the Democratic nominations for the 2020 Presidential elections. We are sceptical that political rhetoric will translate into meaningful reform, and should reforms be forthcoming, we believe these will likely fall on hospital and insurance middlemen (not featured in the Fund) rather than the technology providers which are our mainstay. In any case, the Fund is invested in a collection of geographically diversified companies that invest very significantly into R&D to develop products that save patients’ lives, improve standards of care and reduce overall healthcare expenditures. A recent meeting with the CEO of Roche Pharmaceuticals, a subsidiary of Roche Holdings, highlighted the major advances the group has made in the treatment of haemophilia, multiple sclerosis and oncology, such that these new medicines are fully offsetting the steep losses related to drugs experiencing cheaper, generic competition.

Elsewhere, Novartis spun out Alcon to its shareholders on 9 April, giving the Fund a small stake in the world’s leading eye care business. The shares are richly priced today, but this is an attractive set of assets each with a clear path to improvement under a new and independent management team. Novartis should also benefit from a greater focus on prescription drugs.

Finally, an update with Medtronic further revealed the breadth and depth of the company’s engineering resources, a strength that we believe isn’t fully captured in the company’s valuation.


Fund Details
Total Gross Assets: £100,978,860 (As at 30.04.19)
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