Our approach
Troy’s UK Equity Income Strategy aims to provide growing levels of income with resilient capital growth by investing predominantly in the shares of UK-listed companies.
The Strategy applies Troy’s distinctive approach, investing with an absolute not relative mindset and targeting above-average returns with below-average volatility. The Strategy leverages the stock picking expertise of Troy’s Investment Team to create a concentrated portfolio of high-quality companies, capable of delivering consistent dividend growth. We seek to buy shares in companies at attractive valuations and hold them for a long time.
Income focus
Provide an attractive and regular stream of income which can grow in real terms. We seek companies capable of consistent dividend growth, rather than those with the highest yields
Risk management
Minimise the risk of capital loss by emphasising business risk, valuation, the avoidance of poor corporate behaviours (ESG Risk) and absolute over relative returns
Low volatility
Aim to deliver top-quartile performance over the medium term, whilst exposing investors to lower than average volatility
How we invest
The UK Equity Income Strategy invests in 30-50 high-quality businesses capable of consistent dividend growth. The Strategy predominantly focuses on UK-listed companies but may also selectively invest in the shares of overseas businesses. Our long-term approach and focus on reasonably valued, cash-generative companies leads to low portfolio turnover.
The UK market is large, international and has strong corporate governance standards. We have consistently been able to identify high-quality UK companies that meet our investment criteria and today follow c.70 world-class, UK-listed businesses.
We believe our approach to income investing is differentiated through; our conservative, quality-orientated process, our focus on total return, and our prioritisation of dividend growth above high yield. We seek a sensible balance between capital and income return in order to deliver above-average returns with below-average volatility. The Strategy has no explicit yield target and instead we emphasise real growth and long-term sustainability of the income stream above producing the highest dividend yield today. In so doing, we aim to deliver investors a growing yield on their initial investment.
Our investment process is highlighted below;
1
Own what we consider durable business franchises with exceptional economics, sustainable competitive advantages, and high-quality management teams.
2
We seek companies with an ability and willingness to pay growing dividends, supported by strong balance sheets and funded from genuinely surplus cash flow.
3
We look to buy at reasonable valuations based on free cash flow.
Performance
Risk and Volatility since launch
Performance is calculated on a total return basis, net of fees, in sterling terms. Past performance is not a guide to future performance. The information shown relates to a mandate which is representative of, and has been managed in accordance with, Troy Asset Management Limited’s UK Income Strategy.
Source: Lipper. Since Launch (31/05/2001) to .
UK Equity Income team
Aniruddha is an Investment Analyst and has the responsibility of the analysis of global companies and their selection for Troy’s portfolios.
Aniruddha joined Troy in September 2019 on an internship before becoming an permanent member of the investment team in January 2020. He holds a B. Eng. degree from the University of Pune and an MPhil Finance and Economics from the University of Cambridge. Aniruddha is a CFA Charterholder.
Blake is Manager of the Trojan Income Fund.
Blake joined Troy in 2019 from Investec Asset Management where he was lead manager on the UK Equity Income fund and co-manager on the Global Quality Equity Income Fund. Prior to that, Blake managed retail and institutional UK equity funds at Columbia Threadneedle. Blake holds a MA Hons in Economics and Politics from the University of Edinburgh.
Fergus is the Assistant Manager of the Trojan Income Fund and has responsibility for the analysis of global companies and their selection for Troy’s portfolios.
Joining Troy in 2017 following an internship, Fergus holds a BA in Biological Sciences and a doctorate in Zoology (Biomechanics) from Oxford University. Fergus is a CFA Charterholder.
Hugo is Manager of the Trojan Ethical Income Fund.
Hugo joined Troy in 2009 from Kleinwort Benson, where he was an equity analyst. Hugo gained his MA in Geology from Oxford University in 1999, following which he spent five years serving with the Scots Guards. He holds the CISI Diploma and is a CFA Charterholder.