Troy Income & Growth Trust

UK Equity Income

Rated fund 2013-19. A good option for relatively cautious investors

Despite a change to the management team in 2018, Troy Income & Growth remains a strong UK equity income offering. It is a particularly good option for relatively cautious investors, because it makes capital protection its main objective and offers a more defensive way to access the UK stockmarket.

Cantor Fitzgerald analyst Markuz Jaffe praises the trust’s relatively strong 2018. Most of its outperformance in the year came in the fourth quarter, when it shielded investors from losses incurred as ‘risk-off’ sentiment gripped markets.

Francis Brooke has run the trust since 2009. He was joined by co-manager Hugo Ure in 2015 and Mark Wharrier in October 2017. Wharrier’s stay was brief: he departed in May 2018. However, Morningstar believes the trust is sufficiently resourced given its structured, low turnover approach.

Brooke and Ure run a relatively concentrated portfolio of around 40 quality companies able to grow their dividends almost irrespective of what happens in the wider market. Th­e trust yields 3.7% and pays dividends quarterly.

­The managers have stuck to their approach through conditions favourable and unfavourable to their style.

They invest predominantly in UK companies but can also hold overseas shares. ­They buy companies they believe can generate growing amounts of cash well into the future. Businesses with high returns on invested capital that are sustained by durable competitive advantages are also targeted. ­

These firms are bought when three further conditions are met: they must have strong balance sheets, management teams that will act in the best interests of shareholders and share prices that underestimate future cash flows. ­

The trust has operated a discount control policy since 2010, so its shares tend to trade at close to the value of its assets.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Troy Income & Growth Trust
Troy Asset Management Limited
Closed Ended Investment Company
UK Equity Income
0.94 %
Risk Rating
3 Year Sharpe
3 Year Alpha
3.4 %
Fund Size
£ 253.19 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 %
Unilever PLC 5.26 %
Royal Dutch Shell PLC B 4.48 %
Lloyds Banking Group PLC 4.38 %
GlaxoSmithKline PLC 4.27 %
BP PLC 4.03 %
Compass Group PLC 3.87 %
Experian PLC 3.49 %
RELX PLC 3.45 %
AstraZeneca PLC 3.28 %
Nestle SA 3.09 %
Region %
United Kingdom 81.12 %
United States 15.62 %
Sector %
Consumer Defensive 23.98 %
Financial Services 19.94 %
Consumer Cyclical 11.55 %
Energy 8.96 %
Healthcare 7.96 %
Real Estate 7.63 %
Communication Services 5.94 %
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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