Equity Income  

100 Club Awards 2016: UK Equity Income Fund

This article is part of
100 Club Award Winners - November 2016

100 Club Awards 2016: UK Equity Income Fund
L-R: Tom Brooksbank, business development manager, and Hugo Ure, investment manager, at Troy Asset Management, with Investment Adviser editor Dan Jones

Launched in 1988, the Troy Income & Growth investment trust aims to provide shareholders with an attractive income yield and the prospect of income and capital growth by investing in a portfolio of predominantly UK equities. 

Managed by Francis Brooke and Hugo Ure, this vehicle returns to the IA 100 Club for the second consecutive year, going one better in 2016 to take the category title. 

This year the trust impressed the judges with its focus on capital preservation and avoiding stocks that have cut dividends. It was also described as an “excellent core defensive equity income trust”, with the managers receiving praise for the strong emphasis on investing in companies with long-term, sustainable dividend growth prospects. 

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Although the vehicle invests predominantly in UK equities, the latest factsheet shows an 11 per cent allocation to overseas equities and a 3 per cent holding in cash, as at the end of August. 

In terms of sector allocation the portfolio’s largest weighting is to financials, at 26 per cent, while consumer goods accounts for 23 per cent. Meanwhile, it has an 11 per cent weighting to utilities – often a mainstay of UK equity income vehicles – and just 6 per cent in oil and gas. 

The top-10 holdings account for roughly 34 per cent of the portfolio, and includes a number of traditional income names such as Unilever, GlaxoSmithKline, Royal Dutch Shell and British American Tobacco. 


What the judges say

The judges praised this fund for focusing on capital preservation in order to produce “exceptional” risk-adjusted returns.



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