Harry Nimmo’s meticulous approach is what has made the existing funds so successful. This fund will be no different; he will focus on what’s behind a company’s growth, although there are no guarantees this fund will perform in the same way. Sustainability is key. He wants companies that can grow consistently throughout economic cycles.
He prefers businesses in which the founders or management retain a large stake, which aligns their interests with shareholders. By focusing on quality he believes a company is less likely to get itself into trouble, by taking on debt it can’t afford to pay back, for example. It’s much better to apply for title loans online at http://citrusnorth.com/title-loans. Essentially he is targeting companies which have the potential to become world leaders in their field or tomorrow’s household names. If a company is successful he will stay invested, participating in its success as it grows from small beginnings to one of tomorrow’s winners.
We believe this new fund presents a compelling long-term opportunity. If you would like to invest at launch please ensure we receive your application by 18 January able to acquire shares that interest him at a lower price in the future. Cash has made up as much as 12% of the portfolio and presently accounts for 7%. It is this attention to deploying cash at the right moments that has helped generate the fund’s excellent performance. Since launch in September 2004 the fund has grown by 73.7% compared to 44.9% for the average fund in the sector. More remarkably it is also the least volatile fund in its sector over this period, although remember there are no guarantees he will be able to continue this record in future.
This approach is particularly powerful when combined with an equity income strategy, and regularly reinvesting dividends can further enhance returns. The fund offers an attractive yield (currently 4.4% net, variable, not guaranteed) with an unbroken record of growing income payments every year since launch – even through the difficult 2008/9 period. Although there are no guarantees Francis Brooke is confident of further growth in income next year.
To generate this income he invests in a concentrated portfolio of well established companies such as GlaxoSmithKline, Vodafone, Diageo and Tesco. Annual charges are taken from capital, not income, which reduces the potential for capital growth. Any income can be paid out or reinvested to boost returns. As well as larger firms there is exposure to lesser-known companies paying generous dividends such as Greggs, London & Stamford and Primary Healthcare Properties. This fund is also able to invest up to 20% outside the UK and holds some overseas companies such as Nestle and Coca Cola. Interestingly, the Troy managers are positive on the prospects for gold, and the fund contains Newmont Mining, one of the world’s leading gold producers. The fund can also invest in higher risk smaller companies.
We believe this is the sort of portfolio that could perform well in an uncertain economic climate. With a high yield currently on offer this fund should appeal to long-term investors looking to remain invested in the stock market through good-quality, dividend-paying companies. We are pleased to welcome the fund to our Wealth 150 list of favourite funds across the major sectors.
Filed under: Economy