A resilient UK equity Trust emphasising high-quality companies and dividend growth.
The Trust’s investment process aims to deliver three clear aims:
- Share price total return above the FTSE All-Share Index over a 5-year period.
- Dividend growth of 4% per annum for Shareholders.
- Share price volatility lower than the FTSE All-Share Index.
Why this Trust?
1. Resilient total returns with low volatility
Delivering above-market returns with lower volatility is central to the Trust’s ethos. We aim to achieve this by predominantly investing in high-quality companies, with particular attention paid to the downside risk of any investment. Since Troy’s appointment in 2009, our process has generated returns with significantly lower volatility (click here to see risk analysis) and lower maximum drawdowns than both peers and the market index comparator.
2. Dependable income growth
We aim to provide a steady, regular income that grows consistently from year to year at a rate of 4% per annum, barring unforeseen circumstances. Over the medium term, we aim to fund the dividend from the natural income generated by the portfolio’s underlying investments. The investment trust structure allows us the additional flexibility to smooth the dividend by using the Company’s substantial reserves.
3. Enhanced liquidity through strict discount control
The Company’s Discount Control Mechanism provides liquidity to investors and aims to ensure that the share price trades close to the underlying net asset value on an ongoing basis. The Trust achieves this through its commitment to buy-in shares when there is excess supply in the market and to issue shares when there is excess demand.
The Troy Income & Growth Trust aims to generate an attractive income yield, with potential for income and capital growth, by investing in a portfolio of predominantly UK equities.
- The portfolio is constructed without reference to benchmarks and with careful consideration of the absolute risk posed by each investment.
- The Trust invests predominantly in UK equities, but may also invest in overseas equities, fixed income securities, preference shares, cash and other UK listed investment companies.
- The Trust operates a strict discount control policy which seeks to ensure that the shares trade at, or close to, net asset value at all times.
- Leverage may be used in a tactical and flexible manner to enhance returns.