TROJAN GLOBAL EQUITY FUND: Co-managers really do their homework for long-term gains

22.03.2025 14:00
thisismoney.co.uk
Keywords: danger, success

The Trojan Global Equity Fund focuses on long-term investments in high-quality companies like Alphabet, Meta, and Microsoft, with minimal portfolio changes. Its co-managers conduct thorough research to maintain strong returns, outperforming peers over the past five and ten years. The fund's strategy emphasizes stability and confidence in its holdings, managed by Troy Asset Management with an annual charge of 0.86%.

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Estimated market influence

Alphabet

Positivesentiment_satisfied

Analyst rating: Buy

Alphabet is a major company in the fund's portfolio and has been for at least ten years.

Microsoft

Positivesentiment_satisfied

Analyst rating: Strong buy

Microsoft is a key holding with long-term positive impact.

London Stock Exchange Group

Positivesentiment_satisfied

Analyst rating: N/A

Included as part of the fund's stable and successful portfolio.

Heineken

Positivesentiment_satisfied

Analyst rating: Buy

A significant European brand in the fund's investments.

Roche

Positivesentiment_satisfied

Analyst rating: Buy

Swiss pharmaceutical company contributing to the fund's success.

Becton Dickinson

Negativesentiment_dissatisfied

Analyst rating: N/A

The sale of this stake led to a reallocation, but it was sold after ten years, indicating long-term positive impact before sale.

Amadeus

Positivesentiment_satisfied

Analyst rating: Buy

Invested in as part of the fund's strategy to grow investor capital.

Fiserv

Positivesentiment_satisfied

Analyst rating: Buy

A long-term holding in a specialized tech company contributing to the fund's success.

Intel

Positivesentiment_satisfied

Analyst rating: Neutral

A key semiconductor company held for at least ten years, indicating strong performance.

Context

Analysis and Summary: Trojan Global Equity Fund

Overview

Investment Strategy: Focuses on long-term capital growth by investing in high-quality companies with strong cash generation capabilities.
Portfolio Composition:
- Holds 28 companies, including global tech giants like Alphabet, Meta, Microsoft (referred to as the "magnificent seven").
- Includes European and UK firms such as London Stock Exchange Group, Heineken, and Roche.
- No holdings in Asia.

Performance

Five-Year Return: +82%
Ten-Year Return: +195%
Peer Comparison:
- Five-year: Outperforms peer average (83% vs. 83%).
- Ten-year: Significantly outperforms peer average (195% vs. 119%).

Investment Philosophy

Long-Term Focus: Rare portfolio changes, with adjustments made only when necessary.
Market Resilience: Confident in holdings' ability to generate cash flow during market downturns.
Recent Performance: Fund price dropped 7% in the past month.

Portfolio Management and Strategy

Co-Managers: Gabrielle Boyle emphasizes intelligence gathering through meetings with company representatives and investors.
Strategic Changes:
- Recent portfolio change: Sold stake in Becton Dickinson (medical tech) to invest in Amadeus (holiday tech group).
- Long-term holdings include Alphabet, Fiserv, Intel, and Microsoft.

Fund Management

Manager: Troy Asset Management, managing £11 billion across four strategies:
- Global equity
- Multi-asset
- UK equity income
- Global equity income.
Fees: Annual charge of 0.86%.

Market Implications and Competitive Dynamics

Distinctive Strategy: Long-term holding approach differentiates it from active funds requiring frequent trading.
Geographic Focus: No Asian investments, focusing instead on US and European markets.
Client Appeal: Domiciled in Ireland, allowing access to international and UK investors.

Strategic Considerations

Cash Flow Sustainability: Emphasis on companies with consistent cash generation.
Market Volatility Handling: Belief in the long-term resilience of holdings during economic challenges.