fund
This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!
Trojan Income X
UK equity income fund with a focus on capital preservation.
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96.26p
Price (Inc)
These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.
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107.74p
Price (Acc)
These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?
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0.00%
Initial chargeSome funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!
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0.85%
Annual management charge
This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).
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0.87%
Ongoing charges
This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.
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2.70%
Yield
How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…
The Trojan Income fund aims to provide an above average income with the potential for capital growth in the medium term. The manager invests predominantly in large and mid cap UK equities, but some overseas companies may also feature in the portfolio. The fund follows the Troy house approach of focusing on capital preservation, so manager Francis Brooke favours quality, defensive companies and may also make use of cash if he believes the market to be overvalued.
Fund summary
| Sector | UK Equity Income |
| Structure | OEIC |
| Launched | December, 2017 |
| Size | £3,120m |
| Yield | 2.70% |
| Charging basis | Capital |
| Dividends paid | 31 Mar, 30 Sep |
Charges
| Standard initial charge | 0.00% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 0.85% |
| Ongoing charges figure | 0.87% |
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Investment process
As with all Troy funds this has a focus on capital preservation and consequently may hold up to 20% cash depending on the overall level of equity valuations. The remainder of the portfolio is constructed on a primarily bottom-up basis, though the macro view will also impact sector and stock selection. Brooke favours quality companies with high returns on invested capital sustained by durable competitive advantages - special assets (brands, relationships, networks, intellectual property) that protect them from competitors. He also looks for sound balance sheets so that management can allocate capital flexibly; and management that acts in the best interests of shareholders. He buys these companies when their shares are quoted at a price that underestimates future cash flows. The investment process draws the fund towards certain sectors, particularly consumer goods, healthcare and business software. More cyclical, capital intensive sectors are avoided – the fund seldom invests in miners, aerospace or housebuilders. Troy’s investment universe consists of around 200 companies, of which 100 are in the UK and the remainder in the US and Europe. Of these Brooke picks 35-50 for the fund. Stock turnover is low.
The fund’s focus on capital preservation makes it particularly suitable for more cautious investors. During the turbulent markets of recent years it has been one of the least volatile funds in the UK Equity Income sector, but also one of the top performers. Historically the fund has typically provided a degree of protection in weak markets, though it has often lagged strongly rising markets. The portfolio and process are similar to the Troy Income & Growth Investment Trust, run by the same manager.
Manager research
Average monthly relative returns
- 16/17 -0.63%
- 17/18 -0.50%
- 18/19 0.28%
- 19/20 0.85%
- 20/21 -1.21%
Bestinvest MRI
- 3 years -0.03%
- 5 years -0.24%
- Career 0.07%
- 3 years 54.80%
- 5 years 23.90%
- Career 85.80%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Francis Brooke
Brooke joined Troy Asset Management in 2004 and is an investment director. He was previously a director at Merrill Lynch Investment Managers from 1997, where he was responsible for over £1 billion of UK Equities. He was also a member of their Asset Allocation and Sector Strategy Committees. Prior to Merrill’s he was employed at Foreign & Colonial Management, where he was appointed director in 1995, and at Kleinwort Benson Securities, where he began his career in 1986, after graduating from Edinburgh University.
Track record
Francis Brooke has 16.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.07%. During the worst period of relative performance (from January 2016 - May 2018) there was a decline of 17% relative to the index. The worst absolute loss has been 23%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 86%.
Periods of worst performance
| Absolute | -23.00% (May 2007 - March 2009) |
| Relative | -17.00% (January 2016 - May 2018) |
About the MRI
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.
Allocation
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Top 10 holdings
Data accurate as at 31 July 2020
| 6.4% | Reckitt Benckiser Group Plc |
| 6.3% | Unilever |
| 5.2% | Experian Plc |
| 4.8% | Glaxosmithkline |
| 4.7% | Relx Nv |
| 4.7% | Astrazeneca Plc |
| 4.1% | Nestle Sa |
| 3.6% | British American Tobacco |
| 3.6% | Diageo |
| 3% | Paychex Inc |
| Source: Trustnet |
Sector breakdown
| Consumer Staples | 32.00% |
| Financials | 14.00% |
| Industrials | 12.00% |
| Health Care | 12.00% |
| Consumer Discretionary | 10.00% |
| Real Estate | 7.00% |
| Utilities | 3.00% |
| Materials | 3.00% |
| Information Technology | 3.00% |
| Money Market | 3.00% |
Portfolio
35-50 holdings. Currency hedging may be used. Selective writing of put options.
Constraints
Max 6% in any one holding. Typical max 20% in any sector.