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Trojan Income Fund

The investment objective of Trojan Income Fund is to provide an above average income with the potential for capital growth in the medium term. The investment policy is to invest substantially in UK and overseas equities and fixed interest securities but Trojan Income 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 27/04/2017
319.83p
Accumulation Shares
Income Shares
190.57p
Fund Size
£3,345M

March 2017

The Fund produced a return of +1.2% during the month compared to a return of +1.2% for the FTSE All-Share Index (TR).

The market was led higher during the month by a much broader spectrum of companies than has typically been the case in recent months.  Inmarsat led the way for the Fund, rising by 20%, but amongst the best performers was Next plc. 

We have been steadily adding to our holding in this company as the valuation has become more attractive, most recently buying shares at the beginning of March.  We continue to see the franchise as robust and to admire the management team for its disciplined approach to capital allocation. The business faces considerable challenges but remains highly cash generative. 

This rigour has manifested itself not only in the management’s reinvestment decisions but also in their readiness to return excess cash to shareholders, whether by share buybacks or more latterly via quarterly 45p special dividends.

Special dividends have become increasingly popular in recent years (making up over 7% of all dividend payments in 2016) as companies seek to return surplus retained earnings to shareholders. The Fund has benefited from Troy’s natural inclination to invest in cash-generative companies with a higher than average propensity to pay specials.

This trend is complimented within the Fund’s portfolio by a robust and growing stream of ordinary dividends.  The devaluation of sterling undoubtedly remains a tailwind but we also see material room for underlying dividend growth within many of our preferred sectors.  The announcement of a 12% uplift in Unilever’s ordinary dividend at its recent strategic review is a timely demonstration of this potential.

 

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 LaunchFund IA UK Equity Income FTSE All-Share Index (TR) 
Max drawdown* -25.2% -44.9% -45.6%
Annualised volatility +9.3% +12.4% +13.1%

* Measures the worst investment period 

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

 

Top 10 HoldingsFund (%)
Unilever 5.5
Royal Dutch Shell 4.2
GlaxoSmithKline 3.8
Imperial Brands  3.6
Lloyds 3.3
Compass  3.2
AstraZeneca  3.1
National Grid  3.0
Reynolds American 2.8
Vodafone 2.8
Total Top 10 35.3
37 other holdings 58.8
Cash & equivalent 5.9
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
    Francis Brooke
  • Assistant Fund Manager
    Hugo Ure
  • Inception Date
    30/09/2004
  • Currency
    £ Sterling
  • Available Share Class
    O, I, S
  • ISIN (O Class)
    GB00B01BP176 (Acc)
    GB00B01BNW49 (Inc)
  • Bloomberg (O Class)
    TROJINC_LN (Acc)
    TROJINI_LN (Inc)
  • Sedol (O Class)
    B01BP17 (Acc)
    B01BNW4 (Inc)

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