Troy Income & Growth Trust

UK Equity Income

Rated fund 2013-20. A good option for relatively cautious investors  

Troy Income & Growth is a particularly good option for relatively cautious investors, because it takes capital protection as its main objective. Cantor Fitzgerald analyst Markuz Jaffe points to another successful year for the trust, building on its outperformance during the fourth quarter of 2018 when investors were partially shielded from the stockmarket slump, and again during the market sell-off in August 2019.

Francis Brooke has run the trust since 2009, being joined by co-manager Hugo Ure in 2015. The pair runs a relatively concentrated portfolio of around 50 quality companies that are able to grow their dividends almost irrespective of the wider market. The trust yields 3.2% and pays dividends quarterly. The managers invest predominantly in UK companies, but can also hold overseas shares, buying companies that can generate growing amounts of cash well into the future. They invest in businesses with high returns on capital, sustained by durable competitive advantages. They buy them when three further conditions are met: a strong balance sheet, a management team that will act in the best interests of shareholders, and a share price that underestimates future cash flows.

The trust has operated a discount control policy since 2010, so its shares tend to trade close to the value of its assets. It was at a small premium at the end of 2019. "At a time when concerns over global growth are frequently surfacing, it is no surprise to see a defensive strategy with a proven track record trading favourably, this being one of the few UK equity income investment trusts to trade on a premium," adds Jaffe.

Narrative and ratings content all as of January 2020.

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Troy Income & Growth Trust
Troy Asset Management Limited
Closed Ended Investment Company
UK Equity Income
0.91 %
Risk Rating
3 Year Sharpe
3 Year Alpha
3.8 %
Fund Size
£ 253.92 million
Discount Premium
To provide shareholders with an attractive income yield and the prospect of income and capital growth through investing in a portfolio of predominantly UK equities. Asset classes other than equities will be purchased from time to time, will vary as opportunities are identified and will include convertibles, preference shares, fixed income securities and corporate bonds. However, non-equity securities will not constitute the majority of the portfolio. The Company may also use derivatives for the purpose of efficient portfolio management, including reducing, transferring or eliminating investment risk in its investments and protection against currency risk, to exploit an investment opportunity and to achieve an overall return.
Holding %
Reckitt Benckiser Group PLC 5.58 %
Unilever PLC 5.49 %
RELX PLC 5.06 %
Experian PLC 4.71 %
GlaxoSmithKline PLC 4.52 %
AstraZeneca PLC 4.39 %
Nestle SA 3.84 %
National Grid PLC 3.75 %
British American Tobacco PLC 3.30 %
Diageo PLC 3.29 %
Region %
United Kingdom 83.64 %
United States 12.40 %
Sector %
Consumer Defensive 29.35 %
Financial Services 17.61 %
Healthcare 11.17 %
Industrials 10.33 %
Consumer Cyclical 8.77 %
Communication Services 6.76 %
Troy Asset Management Limited
EC4A 3TR, London, United Kingdom
Legal Structure
Closed Ended Investment Company


Hugo Ure
Joined 03/24/2015

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.

Francis Brooke
Joined 08/01/2009

Francis graduated from Edinburgh University in 1986, following which he worked at Kleinwort Benson Securities and Foreign & Colonial Management Ltd, where he was appointed Director in 1995. From 1997 to 2004 he worked for Merrill Lynch Investment Managers as a Director. He was also a member of both the Asset Allocation & Sector Strategy Committees at MLIM. In 2004 he left to join Troy.

Data provided by Morningstar.

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