Trojan Income Fund

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 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

Commentary

April 2024

Your Fund delivered a return of -1.5% during the month compared to +2.5% for the FTSE All-Share Index (TR).

After a soft start to the year, a significant ‘risk on’ rally in March and April resulted in the FTSE All-Share closing the period at a month-end, all-time high.  Recent returns have come predominantly from cyclicals, with significant strength in shares of energy companies, miners and banks. Given your Fund’s focus on less cyclical but higher quality more capital-light areas of the market, the portfolio has lagged the market’s strong return year to date.  The flipside to this recent strength in cyclicals is that relative valuations for high-quality, more defensive UK businesses are looking particularly attractive to us. The aggregate portfolio currently trades on a c.6% earnings yield and >3% forward dividend yield, all the more attractive given the growth potential and quality of cash flows across the Fund.

There was limited trading activity in the month, however we have this year been building a new holding in Halma plc – a company we believe to be one of the highest quality companies in the UK. Halma is a collection of c.45 niche technology businesses, each of which tends to produce a physical, sensor-based product to make our world ‘safer, cleaner, healthier’. Examples include commercial fire alarm systems used in the likes of the Statue of Liberty, digital water leakage sensors present throughout our sewer systems, and the equipment for eye tests & eye surgery. In our view, Halma’s secret weapon has been consistency. Its diverse collection of companies makes it extremely resilient, delivering reliable growth (organically and through acquisition) with remarkably stable returns on capital. It is a true ‘compounder’, having delivered 20 years of consecutive profit growth and 44 of unbroken dividend growth. When interest rates were low, we found Halma’s valuation to be prohibitively expensive, however, following a weaker period of share price performance, and with the shares trading at a PE ratio below 25x, prospective returns for investors in this exceptional company look compelling once more.

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: 1.02%

‘O’ ACC SHARE CLASS as at 24/05/2024

363.53p

Fund size as at 30/04/2024

£693m

‘O’ INC SHARE CLASS as at 24/05/2024

171.42p

Performance

Source: Lipper, Waystone Management Limited.

30/09/200430/04/201430/04/201930/04/202130/04/202331/10/2023
Since Launch10 Years5 Years3 Years1 Year6 Months
FTSE All-Share TR290.775.830.123.97.514.2
IA UK All Companies TR277.262.720.48.46.815.3
Trojan Income O Acc254.146.94.53.20.67.8
Discrete Calendar Annual Returns (%)200420052006200720082009201020112012201320142015201620172018201920202021202220232024
Trojan Income O Acc3.711.716.84.9-12.114.714.46.39.920.21010.710.26.3-7.120.4-9.615.6-12.55.10.7

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, Waystone Management Limited.

Since Launch (30/09/2004) to 30 April 2024.

Risk and Volatility since launch

Source: Lipper, Waystone Management Limited.

Risk Analysis Since Launch (30/09/2004)Trojan Income O AccIA UK All Companies TRFTSE All-Share TR
Total Return254.1277.2290.7
Max Drawdown-28.1-46.5-45.6
Best Month7.614.112.7
Worst Month-10.8-18.6-15.1
Positive Months61.360.960.4
Annualised Volatility10.114.113.1

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, Waystone Management Limited.

. As at 30 April 2024.

Asset allocation

Top 10 holdingsFund %
Unilever7.22599134638679
Diageo6.47215660377094
RELX6.40223618399976
Reckitt Benckiser4.66941192435599
Experian4.22749945197515
Compass4.0826280079942
Bunzl3.77380874122585
LSEG3.51109757529664
GSK3.41850407415174
Paychex2.63170404563695
Total Top 1046.415037954794
30 Other Equity holdings52.4811135143055
Cash1.10384853090052
Total100

Asset allocation and holdings subject to change. As at 30 April 2024.

Fund literature

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

Fund Information Sheet

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Prospectus & Additional Investor Information     View documents Hide documents

Sustainability-related Disclosures

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Annual Report

January 2023 View document Download document  

Interim Report

July 2023 View document Download document  

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).

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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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