Fund Objective

The Trojan Investment Funds all have an absolute return objective and any comparisons against indices are for illustrative purposes only. The Trojan Capital Fund is an equity fund that aims to provide substantial capital growth over the longer term.

View on Past Performance

Another very difficult month for equity markets. At 22% before rallying to -11.9% at the month end. Against this background the Fund held up fairly well and produced a total return of -6.2%. We took advantage of market weakness to increase the Fund's equity holdings and cash levels fell from 19% to 14% during the month.New holdings were purchased in BAT Industries, Centrica and Johnson & Johnson, the resilient US healthcare company. Aveva, Muhlbauer and Vacon were all sold while we added to a number of existing holdings such as BG, Bic, GlaxoSmithKline, Royal Dutch Shell and Tesco.

Future Expectations

We continue to believe that large companies will lead the market for the foreseeable future and only when we see outstanding value in medium sized and smaller companies will the fund move back into these areas, particularly those exposed to the UK domestic economy. We expect to further increase the equity exposure to large well financed companies with overseas earnings.In summary we expect markets to look through the deteriorating economic conditions in the UK and to continue to rally from these levels.

Fund Details