Trojan Income Fund (Ireland)

Troy

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.

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. At least 80% of the Fund is invested in UK equities, with the possibility of selectively owning the shares of overseas companies in the remainder.

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

Why this fund?

Troy’s UK Income Strategy 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 approach, 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

Commentary

October 2024

Your Fund returned -2.6% during the month, compared to -1.6% for the FTSE All-Share Index (TR).

Macro events dominated the market narrative in October: the new UK government announced its first budget, there was growing hype around the upcoming US presidential election, and tensions in the Middle East continued to escalate. Of note from a financial markets perspective was a rise in government bond yields, with the yield on 10-year UK and US government debt both rising c. 50 basis points in the month from +4.0% to +4.4% and +3.8% to +4.3% respectively. From your Fund’s perspective, it was this move, much more so than any stock-specific news flow, that impacted returns over the month with higher bond yields putting short-term pressure on equity valuations.

The UK budget had been eagerly anticipated, with an unusually long lag between Labour regaining power on the 5th of July and Chancellor Rachel Reeves announcing her fiscal plan on the 30th of October. The reality is that with over 80% of the Fund’s aggregate revenues derived from outside the UK, the impact of domestic politics on portfolio companies is always relatively limited. We are pleased however that it is now behind us, allowing investors to look forward with more certainty as to the shape of policy under this government.

When we look across global markets, we continue to find valuations for UK companies to be particularly attractive. The UK’s is the most international of all stock markets, home to many world-class companies, providing rich opportunities for stock pickers. In the month, we started a new holding in a high-quality UK company. We look forward to sharing more details in an upcoming factsheet.

Key facts

Fund Manager

Blake Hutchins

Assistant Fund Manager

Fergus McCorkell

Inception date

15/04/2013

Currency

Sterling
US Dollar
Euro
Singapore Dollar

Available share classes

O GBP Acc and Inc
O EUR Acc and Inc
O USD Acc and Inc
O SGD Acc and Inc
X GBP Acc and Inc
X EUR Acc and Inc
X USD Acc and Inc
X SGD Acc and Inc

ISIN (O GBP)

IE00B943NN14 (GBP Inc)
IE00B8255S12 (GBP Acc)

Bloomberg (O GBP)

TJIFOGI (GBP Inc)
TJIFOGA (GBP Acc)

Sedol (O GBP)

B943NN1 (GBP Inc)
B8255S1 (GBP Acc)

Ongoing Charges

‘O’ (ordinary) shares: 1.17%
‘X’ (platform) shares: 1.02%

‘O’ ACC SHARE CLASS as at 30/10/2024

£1.141

Fund size as at 31/10/2024

£27m

‘O’ INC SHARE CLASS as at 30/10/2024

£1.1337

Performance

Source: Lipper, Waystone Management Company (IE) Limited.

15/04/201331/10/201931/10/202131/10/202330/04/2024
Since Launch5 Years3 Years1 Year6 Months
FTSE All-Share TR101.031.919.716.31.8
Trojan Income (Ireland) O GBP Acc66.02.81.211.94.0
Trojan Income (Ireland) O USD Acc75.25.52.712.14.1
Trojan Income (Ireland) O EUR Acc47.3-3.3-3.510.23.2

Discrete Calendar Annual Returns (%)201320142015201620172018201920202021202220232024
Trojan Income (Ireland) O GBP Acc6.39.710.59.96.1-7.220-1015.4-12.84.74.6
Trojan Income (Ireland) O USD Acc5.89.31010.66.8-5.721.7-9.215.5-125.14.7
Trojan Income (Ireland) O EUR Acc5.89.49.99.24.8-8.418.2-10.414.4-14.22.93.3

Performance is calculated on a total return basis, net of fees. Past performance is not a guide to future performance.

Non GBP share classes are hedged. Differences in interest rates may contribute to differences in performance between share classes.

Source: Lipper, Waystone Management Company (IE) Limited.

Since Launch (15/04/2013) to 31 July 2024.

Risk and Volatility since launch

Source: Lipper, Waystone Management Company (IE) Limited.

Risk Analysis Since Launch (15/04/2013)Trojan Income (Ireland) O GBP AccFTSE All-Share TR
Total Return66101
Max Drawdown-28.2-35.3
Best Month7.512.7
Worst Month-10.9-15.1
Positive Months57.259.4
Annualised Volatility10.311.9

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

Maximum Drawdown measures the worst investment period

Annualised Volatility is measured by the annualised standard deviation of the monthly returns

Source: Lipper, Waystone Management Company (IE) Limited.

As at 31 July 2024.

Asset allocation

Top 10 holdingsFund %
Unilever6.44887155589736
RELX6.24096373450239
Diageo5.70119475926979
Compass4.60184643656291
Reckitt Benckiser4.42947702610162
LSEG4.40673602929079
Bunzl4.27633677441936
Experian4.13665927678754
National Grid2.73403649953123
GSK2.52217600915457
Total Top 1045.4982981015176
30 Other Equity holdings53.2896401332391
Cash1.21206176524335
Total100

Asset allocation and holdings subject to change. As at 31 July 2024.

Fund literature

Document name Date Open/download Archived documents

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. In line with the Fund’s prospectus, the Fund is authorised to invest in transferable securities and money market instruments issued or guaranteed by an EEA state, one or more local authorities, a third country, or a public international body to which one or more EEA states belong.  The Investment Manager would only consider investing more than 35% of the Fund’s assets in UK or US government issued transferable securities or approved money market instruments. 

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. 

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).

For the full fund disclaimer please refer to the Fund factsheet.

Please refer to Troy’s Glossary of Terms available here.

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.

Trojan Fund (Ireland), Trojan Income Fund (Ireland), Trojan Global Income Fund (Ireland) and Trojan Ethical Fund (Ireland) are sub-funds of Trojan Funds (Ireland) plc which is an Irish UCITS subject to the laws of the Republic of Ireland.  Each is authorised in the Republic of Ireland by the Central Bank of Ireland, and is a scheme recognised by the FCA under the Financial Services and Markets 2000 Act (“FSMA”).  Trojan Fund (Ireland) and Trojan Income Fund (Ireland) are registered for distribution in Austria (certain share classes only), Germany (certain share classes only), Ireland, Italy (for institutional investors only), Singapore (for institutional investors only), Spain (certain share classes only), Switzerland and the UK.  Trojan Fund (Ireland) is also registered in Portugal (certain share classes only). Trojan Ethical Fund (Ireland) is registered for distribution in Ireland, Singapore (for institutional investors only), Spain (certain share classes only), Switzerland and the UK.  Trojan Global Income Fund (Ireland) is registered for distribution in Ireland, Spain (certain share classes only), Switzerland and the UK.

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