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

November 2024

Your Fund returned +3.6% during the month, compared to +2.5% for the FTSE All-Share Index (TR).

US and UK stock markets reacted positively to November’s US election results which saw a Republican clean sweep and a return of Donald Trump to the White House.

In recent months, we have been building new positions in Amadeus IT Group and Rentokil Initial, two global leaders in their respective industries. Amadeus is a Spanish-listed software company focused on the air travel and hospitality industries. Through its leading software solutions, Amadeus acts as a toll on air travel globally, with the company earning fees across the booking to boarding process. It also provides online reservation systems for large, international hotel networks such as IHG and Marriott. Not only should Amadeus benefit from the continued growth in global travel and hospitality, but due to its superior scale and significantly stronger balance sheet, we expect the company to continue taking share from competitors. Amadeus is attractively valued, offering healthy growth, a c.5% free cash flow yield and >2% dividend yield. It joins an exciting group of software/data holdings within the portfolio including Sage, RELX, Experian, LSEG and Paychex.

Rentokil is a leading business services company that generates 80% of sales providing pest control services in over 90 countries. We find the pest control industry to be attractive. It grows steadily over time, benefiting from increased urbanisation and rising wealth trends. Demand is also relatively non-discretionary and repeating which results in sticky customer relationships and recurring revenues. There are also natural benefits of local scale that come from operating a dense service network allowing for attractive incremental economics. Rentokil shares have derated materially over the past 18 months and we believe the current valuation of c.17x PE and a c.2.3% dividend yield is attractive given the underlying quality of the business.

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: 1.03%
‘X’ (platform) shares: 0.88%

‘O’ ACC SHARE CLASS as at 13/12/2024

383.12p

Fund size as at 30/11/2024

£608m

‘O’ INC SHARE CLASS as at 13/12/2024

178.68p

Performance

Source: Lipper, Waystone Management Limited.

30/09/200430/11/201430/11/201930/11/202130/11/202331/05/2024
Since Launch10 Years5 Years3 Years1 Year6 Months
FTSE All-Share TR307.781.132.225.515.71.9
IA UK All Companies TR294.468.921.511.415.51.3
Trojan Income O Acc282.251.65.64.913.26.6
Discrete Calendar Annual Returns (%)200420052006200720082009201020112012201320142015201620172018201920202021202220232024
Trojan Income O Acc3.711.716.84.9-12.114.714.46.39.920.21010.710.26.3-7.120.4-9.615.6-12.55.18.7

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 November 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 Return282.2294.4307.7
Max Drawdown-28.1-46.5-45.6
Best Month7.614.112.7
Worst Month-10.8-18.6-15.1
Positive Months61.660.760.3
Annualised Volatility10.013.913.0

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 November 2024.

Asset allocation

Top 10 holdingsFund %
Unilever6.1101396533049
RELX5.99514089030664
Diageo5.32983914544545
Compass4.69409085190377
LSEG4.50209345497909
Reckitt Benckiser4.38129151243224
Bunzl4.25107384480711
Experian3.91638320993296
IHG2.72784533970536
Smiths2.69332063358624
Total Top 1044.6012185364038
29 Other Equity holdings53.5990229394653
Cash1.79975852413091
Total100

Asset allocation and holdings subject to change. As at 30 November 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

View document Download document  
Prospectus & Additional Investor Information     View documents Hide documents
Sustainability-related Disclosures     View documents Hide documents

Annual Report

January 2024 View document Download document  

Interim Report

July 2024 View document Download document  

Sustainable Investment Labels Statement

Sustainable investment labels help investors find products that have a specific sustainability goal. This fund does not have a UK sustainable investment label as it does not have a sustainable objective as part of its investment objective.  Despite not having a sustainable investment objective, when investing in companies, Troy integrates the analysis of sustainability characteristics into its investment decision-making. Troy also considers the steps companies are taking in relation to climate change mitigation.

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

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<p>Sustainable investment labels help investors find products that have a specific sustainability goal. This fund does not have a UK sustainable investment label as it does not have a sustainable objective as part of its investment objective.&nbsp; Despite not having a sustainable investment objective, when investing in companies, Troy integrates the analysis of sustainability characteristics into its investment decision-making. Troy also considers the steps companies are taking in relation to climate change mitigation.</p>
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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) 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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