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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 20/09/2018
325.91p
Accumulation Shares
Income Shares
183.52p
Fund Size
£2,843M (31/08/18)

August 2018

The Fund produced a return of -0.9% during the month compared to a return of -2.8% for the FTSE All-Share Index (TR).

August markets were unsettled this year by a sharp fall in the Turkish lira.  The vulnerability of this currency has long been flagged by strategists and economists who have cited the country’s heady levels of debt (denominated disproportionately in a strengthening US dollar) combined with escalating political instability as a worrisome mix.  Although the lira has been steadily weakening against the dollar for some time it took the detention of a US pastor to precipitate an acute phase of the crisis.

The weakness in the Turkish currency, and even the wider impact on emerging market exchange rates and debt, have had few direct ramifications for your portfolio.  However, this episode is illustrative of the way in which seemingly unsustainable imbalances and mispricings can persist, unchallenged, for extended periods, often only finally being reflected in asset prices following an unforecastable trigger event.

As long-term investors it is our job to identify the imbalance and mitigate the associated risk, rather than try and precisely predict the timing of the trigger.

In mid-August the S&P 500 set a new record for its longest bull market, surpassing the duration of the 1990s run that ended in the mania of the Dotcom bubble. Today’s cycle has not been without its fair share of imbalances and capital miss-allocation. It is for this reason we have been reducing risk within the portfolio, decreasing the Fund’s exposure to less liquid and more richly valued holdings such as Burberry, IG Group and Jardine Lloyd Thomson, and adding to quality defensive franchises such as RELX and Reckitt Benckiser.  It has been encouraging to see these changes contribute to the Fund’s resilience in recent weeks.

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

 

Source: Lipper, Link Fund Solutions Limited

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% +12.0% +12.8%

 

* Measures the worst investment period 

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

 

Top 10 HoldingsFund (%)
Unilever  5.8
Royal Dutch Shell  5.0
BP 4.6
Reckitt Benckiser   4.3
GlaxoSmithKline 4.2
Lloyds 3.9
 British American Tobacco 3.8
Imperial Brands  3.3
Compass 3.2
National Grid 3.2
Total Top 10 41.3
32 other holdings 55.3
Cash & equivalent 3.4
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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