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 26/06/2017|
The Fund produced a return of +4.8% during the month compared to a return of +4.4% for the FTSE All-Share Index (TR).
The strong return was driven by double-digit returns from a number of holdings led by Vodafone (+16%), AstraZeneca (+13%), Burberry (+12%), Rathbone Brothers (+12%) and Reckitt Benckiser (+12%).
The eclectic nature of this list shows that there was no particular theme driving the market but, what it did represent, was the continuing rotation in favour of quality businesses. This continued the reversal of the violent swing into economically sensitive and cyclical stocks in the second half of 2016. Although not all of that lost ground has been made up, the recent moves have vindicated the Fund’s long-term commitment to quality income growth stocks rather than switching styles in order to chase short-term performance.
Dividend announcements remained positive and the Fund received an additional boost from special dividends announced by Compass Group and New River Retail. We never rely on special dividends to fund the dividend but the types of companies we favour, predominantly cash-generative and self-financing, will inevitably have a higher propensity to generate surplus capital.
Uncertainties surrounding the General Election and forthcoming Brexit negotiations have not impacted the market. Signs that the economy is slowing and that US tax reforms look to be delayed until 2018 are likely to act as headwinds. Valuations are again fairly stretched and we do not expect significant earnings growth to effect a derating.
However, the growing income stream continues to present attractions to investors and will continue to do so in the era of ultra-low interest rates which we expect to continue for some time. With cash balances being increased by funds arising from the Sky and Reynolds American transactions in the coming months, the Fund has plenty of scope to take advantage of appropriate opportunities.
Source: Lipper, Capita Asset Services
The source for performance data has been changed. This change may have resulted in variations from previously published performance figures. These variations are deemed to be immaterial both individually and cumulatively.
|Total Return to 31 May 2017||30/09/04|
|Trojan Income Fund||+234.6%||+128.3%||+89.8%||+36.6%||+16.5%||+12.8%|
|LIBID* GBP 1 month||+28.5%||+13.2%||+1.7%||+0.9%||+0.2%||+0.1%|
|IA UK Equity Income||+187.5%||+74.6%||+87.4%||+26.9%||+18.8%||+13.3%|
|FTSE All-Share Index (TR)||+182.4%||+71.4%||+77.6%||+25.4%||+24.5%||+13.6%|
*London Inter Bank Bid Rate
Annual Returns (%)
|Trojan Income Fund||+11.7||+16.8||+5.0||-12.1||+14.7||+14.4||+6.3||+9.9||+20.2||+10.0||+10.7||+10.2||+8.6%|
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||Fund||IA UK Equity Income||FTSE All-Share Index (TR)|
* Measures the worst investment period
|Top 10 Holdings||Fund (%)|
|Royal Dutch Shell||4.5|
|Total Top 10||35.1|
|37 other holdings||57.5|
|Cash & equivalent||7.4|
How to Invest
You may invest directly, via a broker or adviser, or through a number of online fund platforms.
- Fund Manager
- Assistant Fund Manager
- Inception Date
- Available Share Class
O, I, S
- ISIN (O Class)
- Bloomberg (O Class)
- Sedol (O Class)