Trojan Income Fund (Ireland)

The investment objective of the Fund is to seek to achieve income with the potential for capital growth in the medium term (3 to 5 years). The Fund must invest at least 80% of its assets in UK equities.

In addition to the GBP O share class referred to on this page, other currency share classes are available. Please contact us for more information.

'O' Share Class Price 09/08/2022
Accumulation Shares
Income Shares
Fund Size
£107m (30/06/22)

Past performance is not a guide to future performance.

June 2022

The Fund produced a return of -5.4% during the month compared to a return of -6.0% for the FTSE All-Share Index (TR).

‘Rising rates’, ‘inflation’, ‘stagflation’ and ‘recession’ are all buzzwords that have dominated market commentary in the first half of the year. The clear message is that tougher times are with us and may be for some time. This is why we find ourselves halfway through the year with the S&P 500 down ~20% (in USD) - its worst first half performance in over 50 years. Energy and select commodities companies have been the only relative safe havens, although even these weakened over the past month.

Running through the P&L for many companies, you can see why the market is nervous – revenue growth may be slowing as customers turn cautious and demand drops, while rising input costs are shrinking gross margins. Tight labour markets and cost of living concerns mean wages are increasing, pressuring operating margins. And for those companies reliant on debt, financing costs can be expected to creep up. In aggregate, near-term earnings forecasts may need revising.

There are few business models that thrive in a downturn – a good economy is the friend of the majority. If conditions worsen further, investors can take some comfort that Troy have always emphasised business models where the ‘earnings sensitivity’ should be lower than the market in aggregate. 

We believe a clear majority of the Fund should protect earnings and cash flows better than most, as has been the case in prior tough periods. While Diageo is likely to be more cyclical than Nestlé, the providers of our everyday ‘staple’ products are generally, in our experience, a fine place to be in adverse times. Perhaps even more resilient are the providers of vital drugs and medical devices such as GSK, AstraZeneca, and Medtronic. We can point to many other defensive names: the utility National Grid, the contract caterer Compass, the hugely diverse science publisher and data/analytics firm RELX, or the owners of GP surgeries Assura and PHP. For Bunzl, the distributor of vital everyday goods to businesses, heightened inflation is actively driving higher revenue growth. There will always be a portion of the Fund invested in businesses with higher cyclicality (where it is combined with quality), and we anticipate a time when we might look to increase this, but it is a minority today.

The Fund currently trades on a prospective 5.4% earnings yield, covering a growing 3.1% forward dividend yield. Mid-to-high single digit dividend growth each year is our goal from here, well covered by earnings and cash flow. We gain great comfort from today’s combination of valuation and growth. Long-term prospective returns are becoming more attractive. In the short term a 3.1% tangible return from the dividend provides a growing stream of income or source of capital to reinvest through volatile markets.


Source: Lipper, Link Fund Solutions Limited

Name 15/04/2013
Since Launch
5 Years
3 Years
1 Year
6 Months
FTSE All-Share TR +64.0% +17.8% +7.4% +1.6% -4.6%
Trojan Income (Ireland) O GBP Acc +47.9% -0.7% -5.6% -7.0% -14.9%
Discrete Calendar Annual Returns (%) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Trojan Income (Ireland) O GBP Acc +6.3% +9.7% +10.5% +9.9% +6.1% -7.2% +20.0% -10.0% +15.4% -14.9%

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

Source: Lipper, Link Fund Manager Solutions (Ireland) Limited. Since Launch (15/04/2013) to 30 June 2022.

Source: Lipper, Link Fund Manager Solutions (Ireland) Limited


Risk Analysis Since Launch (15/04/2013) FTSE All-Share TR Trojan Income (Ireland) O GBP Acc
Total Return +64.0% +47.9%
Max drawdown -35.3% -28.2%
Best Month +12.7% +6.8%
Worst Month -15.1% -10.9%
Positive Months +59.1% +57.3%
Annualised Volatility +12.2% +10.6%

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

Maximum Drawdown measures the worst investment period

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

Source: Lipper, Link Fund Manager Solutions (Ireland) Limited

Top 10 holdings Fund %
Diageo 6.4
RELX 6.2
Reckitt Benckiser 5.6
Unilever 5.3
GlaxoSmithKline 5.0
Experian 5.0
Croda International 3.9
Compass Group 3.9
Nestlé 3.4
AstraZeneca 3.3
Total Top 10 47.8
28 other holdings 49.5
Cash & Equivalent 2.7
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. 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.

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).

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