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Trojan Fund

The investment objective of Trojan Fund is to achieve growth in capital and income in real terms over the longer term. The investment policy is to invest substantially in UK and overseas equities and fixed interest securities but Trojan Fund may also invest in collective investment schemes and money market instruments. 

In addition to the O share class referred to on this page, I & S Classes are also available. Please contact us for more information.

'O' Share Class Price 08/12/2016
288.40p
Accumulation Shares
Income Shares
238.25p
Fund Size
£3,521M

October 2016

Your Fund returned +1.0% during the month compared to +0.6% for the FTSE All-Share (TR) Index.

“Sometimes your best investments are the ones you don’t make.” (Donald Trump Tweet)

The Trojan Fund typically restricts itself to investing in businesses that enjoy stable demand for their goods and services, enjoy consistently high returns on invested capital and make relatively minor use of physical assets. Empiricism supports our biases. Our recent analysis of monthly S&P 500 sector historical returns (Source: Bloomberg) show that the median five year total return, since 1989, from the automobiles sector is a lowly 25% and an even more dispiriting -10% from the airlines industry. In contrast the median five year total return from the US-listed tobacco industry is 108%. Moreover, the worst five year period invested in tobacco stocks still delivered a positive 2% return. 

 

 

 

 

We recognise that tobacco investing is a little bit like politics and should not be heard in polite conversation. However, last month your Fund’s largest equity holding, BAT, made an approach to the board of Reynolds American to acquire the 58% of the business it does not already own, including your Fund’s 1.6 million shares. 

The Trojan Fund has held Reynolds for over a decade and it has been one of the most important contributors to performance as the stock market has consistently underestimated the company’s ability to deliver attractive profit and dividend growth. The US market is effectively a duopoly shared by Reynolds with Altria and enjoys both population growth and good affordability. BAT clearly sees the attractions and we expect a deal to be consummated at a higher price than initially pitched.


 

 

 

 

Performance is calculated on a total return basis, net of fees, in sterling terms.

Source: Lipper, Capita Asset Services

The source of performance data has been changed.  This change may have resulted in variations from previously published performance figures.

Risk Analysis Since Launch (30th June 2001)FundIndex*
Total Return +225.4% +127.2%
Max Drawdown # -13.7% -45.6%
Best Month +8.9% +9.9%
Worst Month -4.7% -13.2%
Positive Months +67.6% +59.5%
Annualised Volatility +6.6% +13.9%

* FTSE All-Share TR

# Measures the worst investment period

Performance is calculated on a total return basis, net of fees, in sterling terms.
Top 10 HoldingsFund (%)
Gold Bullion Securities 7.7
British American Tobacco 4.0
Philip Morris 3.4
Microsoft 3.4
Coca-Cola 2.9
Altria 2.7
Sage Group 2.4
ETFS Physical Gold 2.4
Imperial Oil 2.3
Reynolds American 2.1
Total Top 10 33.3
21 other holdings 39.1
Cash & equivalent 27.6
Total 100.0

 

Past performance is not necessarily a guide to future performance. The value of a fund and any income from it may go down as well as up and investors may get back less than they invested. Changes in rates of exchange may cause the value of investments to go up or down. This data is provided for information only and should not be reproduced, published or disseminated in any manner. Although Troy considers the data to be reliable, no warranty is given as to its accuracy or completeness. Any comparisons against indices are for illustrative purposes only.

How to Invest

You may invest directly, via a broker or adviser, or through a number of online fund platforms.

Find Out More

Key Facts

  • Fund Manager
    Sebastian Lyon
  • Assistant Fund Manager
    Sean Beck
  • Inception Date
    31/05/2001
  • Currency
    £ Sterling
  • Available Share Class
    O, I, S
  • ISIN (O Class)
    GB00B01BP952 (Acc)
    GB0034243732 (Inc)
  • Bloomberg (O Class)
    CFTROJA_LN (Acc)
    CFTROJI_LN (Inc)
  • Sedol (O Class)
    B01BP95 (Acc)
    3424373 (Inc)

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