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 19/10/2017|
The Fund produced a return of -1.4% during the month compared to a return of +1.2% for the FTSE All-Share Index (TR).
This was a poor month for the Fund with a trio of unrelated stock and sector specific events combining to impact the NAV by nearly 2%.
The announcement of a failed lung cancer drug trial caused AstraZeneca to fall by more than 15%, effectively reversing the gains of the year to date and returning the share price to its January lows. This was a blow to the company’s important immuno-oncology franchise. The share price adjustment has reflected the future loss of revenue and we believe the valuation is now reasonable.
Provident Financial is a longstanding holding within the Fund and has delivered excellent returns due to the growth of Vanquis, its credit card business. This success has reduced dependence on the original home collected credit business whose business model has been undergoing modernisation.
Management misjudged the execution risk of this change leading to a material profits shortfall this year and a reduction in 2018 estimates. Although the impact on the share price has been significant (-15%), following a meeting with the CEO we believe that the changes will strengthen the company in the long run.
The third event was the announcement by US regulators that renewed a commitment to reducing nicotine levels in cigarettes. This affected the tobacco holdings in the Fund by about -11%. In recent years the Fund’s investments in the tobacco sector have reduced as valuations became more challenging. We expect this will continue as other attractive income generating opportunities arise.
Despite the Fund’s disappointing capital performance, the income account remains robust and the interim dividend for the six months to 31st July has been set at 2.95p. This represents a +3.5% increase on the previous interim dividend and the prospects for the full year are encouraging.
Source: Lipper, Capita Asset Services
The source for performance data has been changed. This change may have resulted in variations from previously published performance figures. These variations are deemed to be immaterial both individually and cumulatively.
|Total Return to 31 July 2017||30/09/04|
|Trojan Income Fund||+220.2%||+131.4%||+70.6%||+33.1%||+5.4%||+5.4%|
|LIBID* GBP 1 month||+28.5%||+12.2%||+1.7%||+0.9%||+0.1%||+0.1%|
|IA UK Equity Income||+181.9%||+82.0%||+72.5%||+26.8%||+13.3%||+7.2%|
|FTSE All-Share Index (TR)||+178.7%||+76.3%||+65.0%||+25.7%||+14.9%||+7.1%|
*London Inter Bank Bid Rate
Annual Returns (%)
|Trojan Income Fund||+11.7||+16.8||+5.0||-12.1||+14.7||+14.4||+6.3||+9.9||+20.2||+10.0||+10.7||+10.2||+3.9%|
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 Launch||Fund||IA UK Equity Income||FTSE All-Share Index (TR)|
* Measures the worst investment period
|Top 10 Holdings||Fund (%)|
|Royal Dutch Shell||4.7|
|British American Tobacco||3.4|
|Total Top 10||36.0|
|36 other holdings||55.3|
|Cash & equivalent||8.7|
How to Invest
You may invest directly, via a broker or adviser, or through a number of online fund platforms.
- Fund Manager
- Assistant Fund Manager
- Inception Date
- Available Share Class
O, I, S
- ISIN (O Class)
- Bloomberg (O Class)
- Sedol (O Class)