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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 23/03/2017
319.91p
Accumulation Shares
Income Shares
190.61p
Fund Size
£3,270M

February 2017

The Fund produced a return of +4.1% during the month compared to a return of +3.1% for the FTSE All-Share Index (TR).

The strong performance was triggered by the swiftly abandoned £115bn offer for Unilever, the largest holding in the Fund, by Kraft Heinz. Although this was a complete surprise to the market the share price reaction reflected the fact that the derating of quality companies in recent months had gone too far.

Our view has always been that we should construct a portfolio of companies which can deliver consistent returns through the entire investment cycle, rather than trying to time the perfect moment to increase or reduce cyclical exposure. This can lead to periods of pedestrian relative performance but also presents opportunities to take advantage of the temporary derating of quality companies. As we always say, even the best companies can go out of fashion and that is the time when well-timed purchases can add the most value to long-term returns.

We continue to believe that the normalisation of interest rates is a process that will take a long time. Although short-term rates may rise in the US, this is much less imminent in the UK and Europe where tightening monetary policy too early could damage economic recovery.

Other than Unilever the best-performing stocks in the Fund last month included Inmarsat, AstraZeneca, Pennon, Rathbone Brothers and Reckitt Benckiser – all long-standing holdings which had lagged the market in recent months. With 10-year gilt yields retreating from their recent high of 1.5% it seems that reports of the death of the so-called ‘bond proxies’ have been exaggerated. With a series of strong dividend increases being announced in recent weeks the Fund’s income growth ‘engine’ is in fine fettle.

 

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% +13.2%

* Measures the worst investment period 

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

 

Top 10 HoldingsFund (%)
Unilever 5.4
Royal Dutch Shell 4.2
GlaxoSmithKline 3.8
Imperial Brands  3.6
Lloyds 3.5
Compass  3.2
AstraZeneca  3.1
National Grid  3.0
Centrica 2.9
Sky 2.8
Total Top 10 35.5
37 other holdings 58.9
Cash & equivalent 5.6
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
    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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