Trojan Fund

Troy

A multi-asset fund that aims to protect investors’ capital and grow its value in real terms over the long term. We combine cautious asset allocation with careful selection of high-quality companies, purchased at fair valuations.

What does the Fund do?

Through a long-term, long-only approach, the Fund has the flexibility to invest in a broad range of asset classes. We primarily invest in developed market equities and bonds, gold-related investments, as well as cash and short-dated Treasury bills.

Why this Fund?

Aimed at investors who want a multi-asset fund emphasising capital preservation and absolute returns. The Fund’s emphasis on downside risk management and high-quality securities aim to deliver strong risk-adjusted returns over the long-term. 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

February 2024

Your Fund returned -0.4% during the month compared to +0.2% for the FTSE All-Share Index (TR).

Whilst the UK market is down this year, the S&P 500 has made new all-time highs. For the first time since 1971, it has posted a weekly gain in 16 out of the past 18 weeks. This latest winning streak began in the autumn with expectations for numerous interest rate cuts in 2024. But even as expectations for easier monetary policy have fallen, stocks have continued to rise. Whether it’s Nvidia’s earnings, or the volte-face in optimism surrounding the US economy, investors seem predisposed to be bullish. Bank of America’s Global Fund Manager Survey in February captures the mood. 90% of respondents expect the economy to experience either a soft or no landing in 2024, whilst only 4% expect higher interest rates.

We would suggest that investors face greater uncertainty than this. On a recent podcast, credit strategist Jim Reid pointed out that the next few months represent something of a ‘snipers’ alley’ when it comes to recession risk. This is due to the lagged effect of monetary policy, with the risk today much greater than this time a year ago. On the flip side, there is also the risk that rates remain higher than markets expect. Not only should this impact on the cost of capital for equities but a more sustained, restrictive environment for rate increases the risk of a worse outcome for the economy.

In spite of optimism at the market level, we are starting to find pockets of opportunity. We added this month to the Fund’s holding in Heineken. The business continues to contend with macroeconomic headwinds in end-markets such as Nigeria and Vietnam, whilst management recently unnerved the market by issuing a wide range of guidance for the year ahead (1-9% earnings growth). This uncertainty (or honesty) has caused a further de-rating in the shares, offering longer-term investors the chance to add. We remain confident in the strength of the management team and the business’s ability to grow its cash flows attractively over the long run.

Key facts

Fund Manager

Sebastian Lyon

Assistant Fund Manager

Charlotte Yonge

Inception date

31/05/2001

Currency

Sterling

Available share classes

O, I, S, X

ISIN (O Class)

GB00B01BP952 (Acc)
GB0034243732 (Inc)

Bloomberg (O Class)

CFTROJA_LN (Acc)
CFTROJI_LN (Inc)

Sedol (O Class)

B01BP95 (Acc)
3424373 (Inc)

Fund rating

© 2023 Morningstar, Inc. All Rights Reserved.

Benchmarks

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

‘O’ ACC SHARE CLASS as at 18/03/2024

393.48p

Fund size as at 29/02/2024

£5,344m

‘O’ INC SHARE CLASS as at 18/03/2024

314.33p

Performance

Source: Lipper, Link Fund Solutions Limited

31/05/200128/02/201428/02/201928/02/202128/02/202331/08/2023
Since Launch10 Years5 Years3 Years1 Year6 Months
Trojan O Income327.665.629.513.23.11.8
UK Retail Price Index117.048.732.627.73.70.4
FTSE All-Share TR227.163.027.725.20.63.9
Bank of England Base Rate60.810.88.37.35.02.6
Discrete Calendar Annual Returns (%)200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024
Trojan O Income0.64.115.410.315.9126.11.111.614.48.52.1-3.18.93.212.34.1-310.77.412.1-3.82.70.1

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

Source: Lipper, Link Fund Solutions Limited. Since Launch (31/05/2001) to 29 February 2024.

Risk and Volatility since launch

Source: Lipper, Link Fund Solutions Limited

Risk Analysis Since Launch (31/05/2001)Trojan O IncomeFTSE All-Share TR
Total Return328227
Max Drawdown-14-46
Best Month913
Worst Month-5-15
Positive Months6659
Annualised Volatility614

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 Solutions Limited. As at 29 February 2024.

Asset allocation

Top 10 holdings (excluding government bonds)Fund %
iShares Physical Gold6.42095311596339
Invesco Physical Gold5.28949121674902
Unilever3.93468661108477
Visa3.29170467654281
Nestle2.81398077002933
Diageo2.68135666479154
Microsoft2.31055863666159
Alphabet1.9109011537206
Becton Dickinson1.83031985089802
Procter & Gamble1.75927954657148
Total Top 1032.2432322430126
8 Other Equity holdings7.01381569078187
US TIPS36.0013246260429
Short-dated Gilts12.6794322935507
US Short-dated Treasuries8.16787769589112
UK Index-Linked3.41836202647
Cash0.475955424250998
Total100

Asset allocation and holdings subject to change. As at 29 February 2024

Fund literature

Document name Date Open/download Archived documents
Factsheet     View archive Hide archive
UCITS KIID     View share classes Hide share classes

Annual Report

January 2023 View document Download document  

Interim Report

July 2023 View document Download document  

Fund Information Sheet

View document Download document  
Prospectus & Additional Investor Information     View documents Hide documents

Sustainability-related Disclosures

View document Download document  
Investment Report     View documents Hide documents
Special Paper     View papers Hide papers

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.

How to invest

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

How to invest

Website Terms and Conditions

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Troy Asset Management Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) of the United Kingdom which can be contacted at 12 Endeavour Square, London E20 1JN.  Troy is registered on the FCA’s register with firm reference number 195764.  Troy is registered with the U.S. Securities and Exchange Commission (“SEC”) as an Investment Adviser (CRD: 319174).  Registration with the SEC does not imply a certain level of skill or training.  Troy is the owner and operator of this website and can be contacted using the details set out in section 11 below.

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The securities described on this website are not intended for use and are not offered in the United States of America or to U.S. Persons.  Please see section 2 for further detail.

  1. Who may access this website – subject to local restrictions

The information on this website is directed at persons in the United Kingdom (“UK”) and not otherwise. The availability of any funds managed by Troy or services provided by Troy mentioned on this website in any jurisdiction other than the UK is subject to local restrictions.  Except as specifically set out below the funds mentioned on this website have not been registered or approved for distribution under the laws of any jurisdiction other than the UK.

If you are accessing this website from a jurisdiction other than the UK, you are required to inform yourself of and observe any applicable local restrictions.  If you choose to access the website and you do so from a country other than the UK, you do so at your own risk and Troy will not be liable for any breach of local law or regulation that you commit as a result of doing so. The information available on this website does not constitute an offer of, or an invitation to apply for or purchase, any securities.

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.

  1. Important information for U.S. Persons

This website as well as the securities described on this website are not intended for use and are not 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).  As such, by accepting these terms you represent and warrant that you are not a U.S. Person as defined under Regulation S of the United States Securities Act of 1933, as amended.

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  1. Risk warnings

The value of investments and the income from them 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.  Past performance is not a guide to future performance.

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Changes to website content

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We keep our terms and conditions under review.  These terms and conditions were most recently updated on 8 September 2023.

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  1. Contact details

Troy Asset Management Limited, 33 Davies Street, London W1K 4BP, United Kingdom; Telephone +44 (0)20 7499 4030; Email [email protected].  Troy Asset Management Limited is a limited company registered in England and Wales under company number 3930846 and has its registered office at 33 Davies Street, London W1K 4BP , United Kingdom. Except where otherwise required by applicable law or regulations, all communication and documentation sent to you by Troy will be in English.  You may communicate with us in English.

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