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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 16/08/2018
334.37p
Accumulation Shares
Income Shares
188.29p
Fund Size
£2,906M (30/06/18)

June 2018

The Fund produced a return of +1.2% during the month compared to a return of -0.2% for the FTSE All-Share Index (TR).

As US interest rate expectations rose, and the outlook for Sino-American trade relations deteriorated, the market rally that had dominated much of the previous two months faltered. Reassuringly, the Master Fund’s consumer staples stocks delivered a robust performance over this period. The more modest multiples on which these stocks now trade is a key factor in determining the resilience of their share prices.

It is also valuation that has driven us to exit the Master Fund’s holding in Burberry.  We first bought the stock two years ago. At that time a depressed Chinese consumer and weak management structures had precipitated a share price fall that left this iconic brand trading on 16x earnings and a 3.5% yield.

Since our purchase, the demographic forces that underpin Chinese consumer spending have re-asserted themselves and both a new chief executive and creative director have been appointed.  These, and other developments, have driven the Burberry share price materially higher, leaving the stock now trading on a ten-year price/earnings multiple high of 27x and a yield of less than 2%.

The long-term future of the Burberry brand has probably altered only modestly during the last 24 months.  However, we believe that the potential returns available to investors in the company’s shares have diminished materially thus prompting us to sell the Master Fund’s holding.

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 (%)
Royal Dutch Shell  5.6
Unilever 5.5
BP 5.0
Lloyds  4.1
Reckitt Benckiser   4.0
GlaxoSmithKline 4.0
British American Tobacco 3.9
Compass 3.4
Imperial Brands 3.3
Experian 3.2
Total Top 10 42.0
35 other holdings 55.3
Cash & equivalent 2.7
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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