Overview
Download factsheetA 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
The team
Blake is Manager of the Trojan Income Fund.
Blake joined Troy in 2019 from Investec Asset Management where he was lead manager on the UK Equity Income fund and co-manager on the Global Quality Equity Income Fund. Prior to that, Blake managed retail and institutional UK equity funds at Columbia Threadneedle. Blake holds a MA Hons in Economics and Politics from the University of Edinburgh.
Fergus is the Assistant Manager of the Trojan Income Fund and has responsibility for the analysis of global companies and their selection for Troy’s portfolios.
Joining Troy in 2017 following an internship, Fergus holds a BA in Biological Sciences and a doctorate in Zoology (Biomechanics) from Oxford University. Fergus is a CFA Charterholder.
Hugo is Manager of the Trojan Ethical Income Fund.
Hugo joined Troy in 2009 from Kleinwort Benson, where he was an equity analyst. Hugo gained his MA in Geology from Oxford University in 1999, following which he spent five years serving with the Scots Guards. He holds the CISI Diploma and is a CFA Charterholder.
Aniruddha is an Investment Analyst and has the responsibility of the analysis of global companies and their selection for Troy’s portfolios.
Aniruddha joined Troy in September 2019 on an internship before becoming an permanent member of the investment team in January 2020. He holds a B. Eng. degree from the University of Pune and an MPhil Finance and Economics from the University of Cambridge. Aniruddha is a CFA Charterholder.
Key facts
‘O’ ACC SHARE CLASS as at 10/09/2024
380.00p
Fund size as at 31/08/2024
£654m
‘O’ INC SHARE CLASS as at 10/09/2024
177.23p
Performance
Source: Lipper, Waystone Management Limited.
| 30/09/2004 | 31/08/2014 | 31/08/2019 | 31/08/2021 | 31/08/2023 | 29/02/2024 | |
|---|---|---|---|---|---|---|
| Since Launch | 10 Years | 5 Years | 3 Years | 1 Year | 6 Months | |
| FTSE All-Share TR | 309.7 | 80.9 | 37.9 | 24.4 | 17.0 | 12.6 |
| IA UK All Companies TR | 299.0 | 70.1 | 30.3 | 8.2 | 16.5 | 11.9 |
| Trojan Income O Acc | 278.7 | 54.1 | 8.0 | 4.5 | 10.9 | 6.8 |
| Discrete Calendar Annual Returns (%) | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Trojan Income O Acc | 3.7 | 11.7 | 16.8 | 4.9 | -12.1 | 14.7 | 14.4 | 6.3 | 9.9 | 20.2 | 10 | 10.7 | 10.2 | 6.3 | -7.1 | 20.4 | -9.6 | 15.6 | -12.5 | 5.1 | 7.7 |
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 31 August 2024.
Risk and Volatility since launch
Source: Lipper, Waystone Management Limited.
| Risk Analysis Since Launch (30/09/2004) | Trojan Income O Acc | IA UK All Companies TR | FTSE All-Share TR |
|---|---|---|---|
| Total Return | 278.7 | 299.0 | 309.7 |
| Max Drawdown | -28.1 | -46.5 | -45.6 |
| Best Month | 7.6 | 14.1 | 12.7 |
| Worst Month | -10.8 | -18.6 | -15.1 |
| Positive Months | 61.9 | 61.1 | 60.7 |
| Annualised Volatility | 10 | 14 | 13 |
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 31 August 2024.
Asset allocation
| Top 10 holdings | Fund % |
|---|---|
| Unilever | 6.87112008478421 |
| RELX | 6.09498199284511 |
| Diageo | 5.3483837941513 |
| Bunzl | 4.35671279929418 |
| Compass | 4.31053868358724 |
| LSEG | 4.21766805390304 |
| Reckitt Benckiser | 4.05427415092075 |
| Experian | 3.96206397138218 |
| GSK | 2.9472105550179 |
| Smiths | 2.82285130378206 |
| Total Top 10 | 44.985805389668 |
| 31 Other Equity holdings | 53.7594085797277 |
| Cash | 1.25478603060435 |
| Total | 100 |
Asset allocation and holdings subject to change. As at 31 August 2024.
Fund literature
| Document name | Date | Open/download | Archived documents |
|---|---|---|---|
| Factsheet | View archive | ||
| Newsletters | View newsletters | ||
| UCITS KIID | View share classes | ||
|
Fund Information Sheet |
View document Download document | ||
| Prospectus & Additional Investor Information | View documents | ||
|
Sustainability-related Disclosures |
View document Download document | ||
|
Annual Report |
January 2024 | View document Download document | |
|
Interim Report |
July 2023 | View document Download document |
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Factsheet
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-
Newsletters
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-
UCITS KIID
View share classes Download
-
Fund Information Sheet
Open Download -
Prospectus & Additional Investor Information
View documents Open
Download
-
Sustainability-related Disclosures
Open Download -
Annual Report
Date: January 2024 Open Download -
Interim Report
Date: July 2023 Open Download
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
Find more information on how to invest in this fund and where it is available.
How to invest
Commentary
August 2024
Your Fund returned +2.0% during the month, compared to +0.5% for the FTSE All-Share Index (TR).
Despite being August, there was no sense of a summer lull for the Fund, with ten portfolio companies reporting results. These updates were generally encouraging, particularly in the case of two larger holdings, Bunzl and London Stock Exchange Group (LSEG).
Bunzl’s half-year results demonstrated the consistent progress and improvement we have come to expect from this global leader in B2B distribution. Margin improvement has been a feature of recent years, and this has continued in H1 2024. Capital allocation was the other highlight. Bunzl has long been able to use excess cashflow to pay a growing dividend whilst also carrying out value-accretive, bolt-on acquisitions (something we wrote about in a recent Newsletter). Cash generation has been so strong in recent years that the company additionally announced a buyback of their own shares. Given management’s long track record of exemplary capital allocation, this is a strong indication that they consider the shares to be good value. Trading at a free cash flow yield of almost 6%, whilst having consistently grown free cash flow per share at a high single digit annual rate for over two decades, we would strongly agree with this judgement.
LSEG also reported a typically solid set of results. Sales and operating profits grew 7% and 9% respectively at constant exchange rates, whilst free cash flow generation was very strong. Since initiating a holding in LSEG in 2022, we have continued to gain conviction in the quality of the business and have periodically added to the position at attractive prices. We particularly admire the recurring nature of revenues, underlined by the fact that the actual London Stock Exchange now accounts for only c.3% of group revenues. The improving quality and diversification of LSEG gives us confidence that the company will be resilient through market cycles. The shares currently trade at a very fair valuation of a c. 4.2% free cash flow yield, which represents a meaningful discount to their global peers.