Investments  

Troy trust boss targets further consolidation

Troy trust boss targets further consolidation

The chairman of the £263m Troy Income and Growth investment trust is aiming to grow the fund's assets by taking over rival trusts. 

Commenting in the trust's annual report, which covers the year to September 30, 2019, David Warnock said the recent takeover of the Cameron investment trust meant increased liquidity and potentially lower charges for investors. The takeover of the Cameron investment trust increased the size of the Troy Income and Growth trust by 4.5 per cent.  

Troy Income and Growth previously took over a pair of small investment trusts in 2012, and Mr Warnock is keen for more.

He wrote: “The board continues to be keen to grow the company's assets both organically and also as a result of participation in consolidation within the investment trust sector.”

The Troy Income and Growth investment trust has returned 44 per cent over the five years to November 25, compared with 27 per cent for the average trust in the AIC UK Equity Income sector in the same time period, according to data from FE Analytics. 

For the year to September 30, the trust returned 12 per cent, while its sector sa a loss of just over 1 per cent.

The trust’s manager, Francis Brooke, said: "As ever, we emphasise our examination of stock-specific investment cases over 'macro' positioning but recognise that changing economic conditions have historically provided some of the best opportunities to make long-term investments in high-quality businesses."

The Troy Income and Growth trust trades at a premium to its net assets of 0.2 per cent.

david.thorpe@ft.com

What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.