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Trojan Income Fund

The investment objective of the Trojan Income 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 O share class referred to on this page, I & S Classes are also available. Please contact us for more information.

'O' Share Class Price 11/08/2020
Accumulation Shares
Income Shares
Fund Size
£3,453m (31/07/20)

Past performance is not a guide to future performance.

July 2020

Your Fund delivered a total return of -1.6% during the month compared to -3.6% for the FTSE All-Share Index (TR).

In the month, we spoke with the management of Croda following their first half results. The company is a recent addition to the portfolio and exhibits many of the qualities we look for in a Troy stock. Croda is a speciality chemicals business that generates sales predominantly by producing ingredients derived from natural oils. One of the great attractions of Croda is their diversity: they sell thousands of products to thousands of customers, with their formulations used in everything from sunscreen, deodorants and makeup, through to vaccines, textiles and natural crop protections. Moreover, these ingredients are often critical to their product’s function, but typically cost a fraction of the customer’s raw material costs and retail sales value. To give one well-known example, Croda’s Matrixyl is the ‘magic’ ingredient in anti-ageing creams.

Diversity, vital products, and plenty of proprietary know-how mean Croda generates far more attractive economics than commodity chemicals businesses. The quality of the business model has enabled them to comfortably weather COVID-related impacts so far, with no furloughing or cutting of staff. Sales and profits were modestly down, but operating margins remained high at 24% and free cash flow (FCF) generation continues to be healthy. 

The company have long paid a sensible dividend equating to around 50% of FCF in any given year. This level of pay-out leaves ample cash to reinvest in the business for future growth, while still allowing the company to announce recently their 29th successive year of dividend growth.

Not all companies in the wider market, or indeed the Fund, have proven as robust as Croda through the global pandemic. The challenges so far this year have been crystallised for investors through wide-ranging cancellations, cuts, or deferrals of dividends. In the UK market, Q2 dividends were less than half the level paid out last year.

Whilst your Fund has been more resilient so far, it has not been immune, and will pay out an interim dividend of 2.0p versus 3.05p a year ago. The reduction also reflects our active portfolio decisions taken over the past ~18 months to bolster dividend growth and sustainability at the expense of headline yield, of which our investment in Croda is a good example. In spite of this re-basing, we are confident that recent and ongoing changes improve the durability of underlying FCF growth, thereby supporting the Fund’s long-term potential for future income.


Source: Lipper, Link Fund Solutions Limited

Total Return 30/09/2004
Since Launch
10 Years
5 Years
3 Years
1 Year
6 Months
Trojan Income O Acc +218.4% +118.9% +16.7% -0.5% -9.7% -12.4%
IA UK Equity Income TR +143.3% +75.1% -0.1% -13.7% -17.2% -20.5%
FTSE All-Share TR +153.4% +73.0% +8.4% -9.1% -17.8% -17.8%
Discrete Calendar Annual Returns (%) 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Trojan Income O Acc +3.7% +16.8% +4.9% -12.1% +14.7% +14.4% +6.3% +9.9% +20.2% +10.0% +10.7% +10.2% +6.3% -7.1% +20.4% -13.1%

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

Source: Lipper, Link Fund Solutions Limited. Since Launch (30/09/2004) to 31 July 2020.

Source: Lipper, Link Fund Solutions Limited

Risk Analysis Since Launch (30/09/2004) Trojan Income O Acc IA UK Equity Income TR FTSE All-Share TR
Total Return +218.4% +143.3% +153.4%
Max Drawdown -28.1% -44.9% -45.6%
Best Month +6.8% +10.9% +9.9%
Worst Month -10.8% -18.4% -15.1%
Positive Months +61.6% +62.1% +59.5%
Annualised Volatility +9.8% +13.1% +13.3%

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 standard deviation of annual returns. 

Source: Lipper, Link Fund Solutions Limited.  

Top 10 holdings Fund %
Reckitt Benckiser 6.4
Unilever 6.3
Experian 5.2
GlaxoSmithKline 4.8
RELX 4.7
AstraZeneca 4.7
Nestlé 4.1
British American Tobacco 3.6
Diageo 3.6
Paychex 3.0
Total Top 10 46.3
29 other holdings 50.9
Cash & Equivalent 2.8
Total 100.0

Asset allocation and holdings subject to change.


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. 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. 

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