TROJAN GLOBAL EQUITY FUND: a £ 450million tech fund winning growth wars with rivals
The Trojan Global Equity investment fund is dedicated to investing in some of the fastest growing companies in the world. It has a heavily US-biased portfolio and includes many names that have flourished through digitization: like Facebook, Microsoft, and PayPal.
The £ 450million fund is overseen by Gabrielle Boyle, chief investment officer and head of research at Troy Asset Management, a specialist investment firm that manages assets totaling £ 16 billion. In addition to managing a series of Trojan-labeled funds, it also manages leading investment trusts such as Personal Assets and Securities Trust of Scotland. Preserving investor capital is as important as generating long-term investment gains.
Boyle is very proud of the fund she manages. “It’s a simple investment approach,” she says. “I seek to invest for capital growth by managing a concentrated portfolio comprising some of the most exceptional companies in the world. 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 positions accounting for 57 percent of assets. Its biggest stake is in Alphabet, owner of Google.
As simple as the investment process is, the performance numbers indicate that it is very effective. Over the past five years, it has rewarded investors with returns of 93%. During this period, it outperformed both the FTSE All-Share Index and the global investment fund average.
Boyle enjoys owning businesses that have lasting advantages over their competition. These in turn can stimulate their growth and increase their profits. This means stakes 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). Indeed, equities focused on health and digital 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 an age of extraordinary digital change and disruption. As a result, we have businesses that are helping or benefiting from this project. ‘
Other positions in the healthcare sector include stakes in US medical technology company Medtronic and analytics specialist Aligent Technologies, also listed in the US. “We first invested in Aligent in October 2019 after visiting management in California,” Boyle explains. “We have since added to our position. It is a company that supplies the picks and shovels that advance in a wide range of industries – from pharmaceuticals to diagnostics and food. ‘
Although more than 70 percent of the portfolio is made up of US companies, Boyle says their income is generated globally. She also says that all businesses are bought regardless of where they are listed. “If you’re looking to buy into tech or healthcare, you’re invariably drawn to the United States, Silicon Valley, and the West Coast,” she adds.
High corporate valuations, Boyle said, are a concern and reflect the extraordinary times the global economy has recently been through. But she is confident that the companies she owns will continue to be global success stories, justifying the rise in stock prices.
The fund’s market identification code is B0ZJ5S4 and the annual management fee is 0.91 percent. The fund is not suitable for income investors.