TROJAN GLOBAL EQUITY FUND: £450m tech fund wins growth wars with rivals
Mutual fund Trojan Global Equity invests in some of the world’s fastest growing companies. It has a strong US-oriented portfolio and includes many of the names that have thrived thanks to digitization: Facebook, Microsoft and PayPal.
The £450 million fund is overseen by Gabrielle Boyle, an investment director and head of research at Troy Asset Management, a boutique investment house with assets totaling £16 billion. In addition to managing a range of Trojan-labelled funds, it also manages leading investment trusts such as Personal Assets and Securities Trust of Scotland. Preserving investors’ capital is just as important as generating long-term investment profits.
Boyle is extremely proud of the fund she manages. “It’s a simple investment approach,” she says. “I look for capital appreciation by managing a concentrated portfolio made up of some of the world’s most exceptional companies. We spend a lot of time identifying these companies, doing our homework and then investing for the long term.”
The result is a fund of just 27 holdings, with the top ten holdings accounting for 57 percent of assets. The largest stake is in Alphabet, owner of Google.
As simple as the investment process is, the performance figures indicate that it is highly effective. Over the past five years, it has rewarded investors with a return of 93 percent. During this period, it outperformed both the FTSE All-Share Index and the average global mutual fund.
Boyle likes to own companies that have lasting advantages over rivals. These, in turn, can boost their growth and increase profits. It means holdings in companies such as Swiss drug giant Roche (a leader in the fight against cancer with proven drugs such as Avastin, Herceptin and Xeloda), and PayPal and Visa (dominant in online payments). Health stocks and digitally focused stocks dominate the fund.
“We like to invest in healthcare companies that make and sell products that are essential to our lives,” Boyle says. “We live in a time of extraordinary digital change and disruption. As a result, we have companies that are helping to continue or benefit from this.”
Other positions in healthcare include interests in US medical technology company Medtronic and analytics specialist Aligent Technologies, also listed in the US. “In October 2019, we first invested in Aligent after visiting management in California,” said Boyle. “Since then we have expanded our position. It is a company that provides the picks and shovels that enable progress in a wide range of sectors – from pharmaceuticals to diagnostics and food.”
While more than 70 percent of the portfolio is made up of US companies, Boyle says their revenues are earned globally. She also says that all businesses are bought regardless of where they are listed. “If you want to buy technology or healthcare, you are invariably drawn to the United States, Silicon Valley and the West Coast,” she adds.
High corporate valuations, Boyle says, are a concern and a reflection of the extraordinary times the global economy has been going through recently. But she is confident that the companies she owns will continue to be global success stories, justifying higher stock prices.
The fund’s exchange identifier is B0ZJ5S4 and the annual management fee is 0.91 percent. The fund is not suitable for income investors.