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 17/08/2017|
The Fund produced a return of -3.0% during the month compared to a return of -2.5% for the FTSE All-Share Index (TR).
This was a difficult month for equity markets and none more so than the UK, where the inconclusive general election result achieved the direct opposite of the Prime Minister’s stated aim to secure a clear majority and thus strengthen Britain’s hand in the Brexit negotiations.
Instead, a minority government, supported by the DUP, is entering into the most complex process the UK has undertaken for fifty years. In fact the chief UK negotiator, David Davis, has now likened the challenge to that facing NASA when planning the first moon landing.
The political uncertainty, combined with weakening consumer demand in the UK and inflation, caused mainly by sterling weakness last year, is eroding real earnings and sapping spending power. With the UK savings ratio falling to an all-time low of 1.7% of disposable income, and consumer credit still rising, the pressure to relax the purse strings on public spending is coming from both sides of the political aisle. Growth in the first quarter of 2017 slowed to just 0.2% - the slowest rate in the G7.
Winners in the stock market are hard to find in the current environment and only twenty share prices in the FTSE 350 index rose by over 5% in the month. By contrast over one hundred share prices fell by over 5% in June and, as we always say, it was more important to ‘avoid the torpedoes’ than find the winners. This cannot always be achieved.
Unfortunately one of the best-performing holdings in the portfolio in recent years, Provident Financial, hit a bump in the road last month. The transition of its home-collected credit business to a new operating model has faltered, prompting earnings downgrades of 15% this year and 10% in 2018. The share price correction of 20% has in our view now discounted this bad news and the growth areas of the business are unaffected. We have added to the holding at current levels.
It is hard to be optimistic about equities at present, but that is a widely held view – normally a bullish indicator. The portfolio contains holdings in many companies that are well able to generate sufficient cash flow to grow their dividends. Although there are plenty of dark clouds at present for investors we remain extremely confident about the income generation potential of the Fund.
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 30 June 2017||30/09/04|
|Trojan Income Fund||+224.6%||+127.1%||+76.1%||+33.6%||+11.4%||+5.3%|
|LIBID* GBP 1 month||+28.5%||+12.7%||+1.7%||+0.9%||+0.2%||+0.1%|
|IA UK Equity Income||+180.8%||+75.4%||+76.4%||+26.0%||+19.4%||+6.8%|
|FTSE All-Share Index (TR)||+175.5%||+68.5%||+65.3%||+23.9%||+18.1%||+5.5%|
*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||+5.3%|
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||4.5|
|Total Top 10||35.3|
|37 other holdings||57.6|
|Cash & equivalent||7.1|
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)