- Trojan Global Income has a large portion of its assets in global businesses listed in the UK but can invest also further afield
- Many UK-listed companies cut their dividends last year but these types of businesses have been resilient during the pandemic
- Trojan Global Income's focus on quality companies means that it can lag peers when markets are rising
Trojan Global Income Fund (GB00BD82KQ40) can scour the world for income. But, despite its wide remit, nearly a third of its assets were in UK equities at the end of September – a market which has endured some very severe dividend cuts.
“The sorts of things that we focus on didn't have to cut their dividends,” explains James Harries, manager of Trojan Global Income. “The larger constituents of the UK market tend to be represented by legacy or more historic businesses such as such as oil and mining. But there are also some fabulous global businesses that happen to be listed in the UK, and we have a number of them. There is also a tradition of paying income in this country, which when combined with a really high-quality global company makes for quite a compelling offering. So we have businesses such as Reckitt Benckiser (RKT), Unilever (ULVR), Relx (REL) and InterContinental Hotels (IHG). These are asset light, high return on capital, entrenched brands that also pay an income. The UK had an idiosyncratic difficulty with regard to Covid and Brexit which lead to the market looking really inexpensive. So we have been allocating incremental capital to the UK, to global businesses which have been dragged down [because investors have been waiting] to see how things develop in this country.”