Trojan Income Fund

Troy

Overview

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A fully invested equity strategy that aims to provide investors with growing levels of income with resilient capital growth by investing at least 80% of the Fund in UK-listed companies with the possibility of selectively owning the shares of overseas companies in the remainder.

What does the fund do?

We manage a concentrated portfolio of 30-50 high-quality, cash-generative companies that are capable of consistent dividend growth.

Our long-term approach and focus on reasonably valued, high-quality, cash-generative companies leads to low portfolio turnover.

Why this fund?

The Trojan Income Fund has been managed in Troy’s distinctive investment style since 2004. We believe our approach to income investing is differentiated through; our conservative quality-orientated process, our focus on total return and our prioritisation of dividend growth above high yield. We seek a sensible balance between capital and income return in order to deliver above average returns with below average volatility.

The strategy has no explicit yield target and instead we emphasise real growth and long-term sustainability of the income stream above producing the highest dividend yield today. In so doing, we aim to deliver investors a growing yield on their initial investment.

The Fund integrates ESG and stewardship in accordance with Troy’s Responsible Investment & Stewardship Policy and also adheres to Troy’s Climate Change Mitigation Policy, in accordance with article 8 of SFDR.

View our SFDR disclosure

The team

Commentary

December 2025

Your Fund returned -1.0% during the month, compared to +2.2% for the FTSE All-Share Index TR.

2025 was a very strong year for the UK market, with the FTSE All-Share rising +24%, its best performance since 2009. Returns were driven by low starting valuations and exceptional strength in several large index constituents.

By contrast, the Fund returned +2.8% over the year. Strategies with a quality bias, such as ours, materially underperformed, while value-oriented approaches delivered strong returns. Financials led the market higher, with Banks gaining +69% and Insurance +47% as higher interest rates boosted profitability. Aerospace & Defence (+77%) and Metals & Mining (+40%) also performed strongly amid geopolitical uncertainty and enthusiasm for gold. We do not own companies in these sectors on quality grounds, and this weighed on relative performance.

There were, however, several strong contributors over the year, including British American Tobacco, Next, Reckitt, GSK and Smiths Group. The main detractors were Diageo, Bunzl, LSEG, Auto Trader and RELX. The latter three were affected by a broad sell-off in software and data businesses linked to concerns around AI. We remain attentive to developments in this area but believe companies with genuinely proprietary data and deeply embedded mission-critical software are well placed as AI adoption evolves.

Valuations for quality UK companies are notably attractive in our opinion. Around 70% of the Fund’s holdings trade below their ten-year average Price/Earnings ratios, while the Fund’s look-through valuation[1] implies a c.6% earnings yield and a dividend yield above 3%. We therefore look ahead to the New Year and beyond with confidence in the quality, resilience and income potential of the portfolio.

We wish readers a happy and healthy 2026.

[1] The fund’s valuation based on the value of its underlying investments.

Key facts

Fund Manager

Blake Hutchins

Assistant Fund Manager

Fergus McCorkell

Inception date

30/09/2004

Currency

Sterling

Available share classes

O, I, S, X

ISIN (O Class)

GB00B01BP176 (Acc)
GB00B01BNW49 (Inc)

Bloomberg (O Class)

TROJINC_LN (Acc)
TROJINI_LN (Inc)

Sedol (O Class)

B01BP17 (Acc)
B01BNW4 (Inc)

Benchmarks

For more information on the benchmarks used please refer to
the ‘use of benchmarks’ section in the fund information sheet

Ongoing Charges

‘O’ (ordinary) shares: 1.04%
‘X’ (platform) shares: 0.89%

‘O’ ACC SHARE CLASS as at 30/10/2024

372.97p

Fund size as at 31/12/2025

£428.2m

‘O’ INC SHARE CLASS as at 30/10/2024

173.95p

Performance

Source: Lipper.

30/09/200431/12/201531/12/202031/12/202231/12/202430/06/2025
Since Launch10 Years5 Years3 Years1 Year6 Months
FTSE All-Share TR399.7123.473.946.524.013.7
IA UK All Companies TR348.083.641.833.515.17.2
Trojan Income O Acc285.037.716.315.12.80.0

Discrete Calendar Annual Returns (%)2004200520062007200820092010201120122013201420152016201720182019202020212022202320242025
Trojan Income O Acc3.711.716.84.9-12.114.714.46.39.920.21010.710.26.3-7.120.4-9.615.6-12.55.16.52.8

Source: Lipper. Since Launch (30/09/2004) to 31 December 2025. Past performance is not a guide to future performance. Performance is calculated on a total return basis, net of fees, in sterling terms.

Risk and Volatility since launch

Source: Lipper.

Risk Analysis Since Launch (30/09/2004)Trojan Income O AccIA UK All Companies TRFTSE All-Share TR
Total Return285.0348.0399.7
Max Drawdown-28.1-46.5-45.6
Best Month7.614.112.7
Worst Month-10.8-18.6-15.1
Positive Months60.460.861.2
Annualised Volatility10.013.712.8

Maximum Drawdown measures the worst investment period. Annualised Volatility is measured by the annualised standard deviation of the monthly returns. Source: Lipper, as at 31 December 2025. Past performance is not a guide to future performance. Performance is calculated on a total return basis, net of fees, in sterling terms.

Asset allocation

Top 10 holdingsFund %
LSEG4.64102154399785
Unilever4.40655891108964
Compass4.14419553946265
RELX4.01508590505672
Diageo3.72134546244978
BAT3.42651416929908
Amadeus3.35894628125213
Spirax3.16704965272203
GSK3.1450759211404
Bunzl3.10814069394607
Total Top 1037.1339340804164
28 Other Equity holdings62.8309323324244
Cash0.0351335871592289
Total100

Asset allocation and holdings subject to change. As at 31 December 2025.

Fund literature

Document name Date Open/download Archived documents
Factsheet     View archive Hide archive
Newsletters     View newsletters Hide newsletters

Fund Information Sheet

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Interim Report

 July 2025 View document Download document  

Annual Report

 January 2025 View document Download document  
UCITS KIID     View share classes Hide share classes
Sustainability-related Disclosures     View documents Hide documents
Prospectus & Additional Investor Information     View documents Hide documents

Sustainable Investment Labels Statement
Sustainable investment labels help investors find products that have a specific sustainability goal. This fund does not have a UK sustainable investment label as it does not have a sustainable objective as part of its investment objective.  Despite not having a sustainable investment objective, when investing in companies, Troy integrates the analysis of sustainability characteristics into its investment decision-making. Troy also considers the steps companies are taking in relation to climate change mitigation.

Important Information
Past performance is not 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. Returns may increase or decrease as a result of currency fluctuations. 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.  Some of the information contained on this page: (1) is proprietary to Morningstar and/or its content providers​; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. For the full fund disclaimer please refer to the Fund factsheet. Please refer to Troy’s Glossary of Terms available here.

Important information for U.S. persons
The securities described on this website are neither available nor offered in the United States of America (including the District of Columbia or any other territory occupied or possessed by the United States of America) or to U.S. persons (including residents of the United States of America, residents within an area subject to its jurisdiction and U.S. persons who are resident outside the United States of America).

How to invest

Find more information on how to invest in this fund and where it is available.

How to invest

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Trojan Investment Funds and its sub-funds are UK funds established under the provisions of the European Directives on the co-ordination of laws, regulations, and administrative provisions relating to undertakings for collective investment in transferable securities (“UCITS”) (Directive 2009/65/EC) as implemented in the UK.  Trojan Investment Funds is authorised by the FCA.  Certain sub-funds are available for distribution in Ireland (for professional investors only), Singapore (for institutional investors only), Switzerland (for qualified investors only) and are registered for distribution to the public in the UK.

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