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Trojan Income Fund

The investment objective of Trojan Income Fund is to provide an above average income with the potential for capital growth in the medium term. The investment policy is to invest substantially in UK and overseas equities and fixed interest securities but Trojan Income Fund may also invest in collective investment schemes and money market instruments. 

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 23/05/2017
330.92p
Accumulation Shares
Income Shares
197.18p
Fund Size
£3,409M

April 2017

The Fund produced a return of -0.2% during the month compared to a return of -0.4% for the FTSE All-Share Index (TR).

Amid the announcements on US tax reform and the hubbub around the French presidential election, a solid set of first-half results from WH Smith went largely unnoticed.

However, the statement reveals that an interesting milestone has been achieved. Over the last ten years, the combined value of share buybacks conducted (£415m) and dividends paid (£414m) by WH Smith has now materially exceeded the total market capitalisation of the company as it stood in 2007 (£728m). 

During the month we also met with the CEO of Lloyds Bank, another company that has placed the return of cash to shareholders at the core of its strategy.  In April Lloyds went ex the second of two 0.5p special dividends it has announced since returning to the dividend list in 2015. The special dividends relate to capital that has been generated in excess of that needed to fund the growth of the business and meet its regulatory capital requirements.  

Although these two companies are very different in many ways, both management teams have a clear focus on the returns generated by the business rather than a myopic focus on the earnings per share line.  Lloyds has for many years concentrated on the quality rather than the size of its loan book and WH Smith on profitability of each square foot of retail space rather than adding ever more stores.  In both cases cash has been returned to shareholders rather than invested in expansionary projects with a poor risk return profile.

Such actions are not only beneficial for the Fund’s income account but more importantly evidence the robust capital allocation ethos that will underpin strong long-term capital returns.

 

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

 

Source: Lipper, Capita Asset Services

The source of performance data has been changed.  This change may have resulted in variations from previously published performance figures.

Risk Analysis Since LaunchFund IA UK Equity Income FTSE All-Share Index (TR) 
Max drawdown* -25.2% -44.9% -45.6%
Annualised volatility +9.2% +12.3% +13.1%

* Measures the worst investment period 

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

 

Top 10 HoldingsFund (%)
Unilever 5.4
Royal Dutch Shell 3.8
Imperial Brands  3.5
GlaxoSmithKline 3.4
Lloyds 3.4
Compass  3.2
AstraZeneca  3.0
National Grid  2.9
Reynolds American 2.7
Experian 2.7
Total Top 10 34.0
37 other holdings 57.7
Cash & equivalent 8.3
Total 100.0
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. 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.

How to Invest

You may invest directly, via a broker or adviser, or through a number of online fund platforms.

Find Out More

Key Facts

  • Fund Manager
    Francis Brooke
  • Assistant Fund Manager
    Hugo Ure
  • Inception Date
    30/09/2004
  • Currency
    £ Sterling
  • Available Share Class
    O, I, S
  • ISIN (O Class)
    GB00B01BP176 (Acc)
    GB00B01BNW49 (Inc)
  • Bloomberg (O Class)
    TROJINC_LN (Acc)
    TROJINI_LN (Inc)
  • Sedol (O Class)
    B01BP17 (Acc)
    B01BNW4 (Inc)

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