Troy Trojan Income – fund manager change

Francis Brooke and Hugo Ure will step down as co-managers of the Troy Trojan Income fund at the end of 2021. Blake Hutchins, the fund’s other co-manager, will take over as lead manager.

Brooke has managed the fund since launch in 2004 and built a strong track record. While it’s always disappointing to see such an experienced manager step back from fund management, we are confident Troy Asset Management has taken succession planning seriously with a well-thought out plan around who continues to run the fund.

Brooke won’t be leaving Troy, but instead he will take his experience to the broader business level. He will take up a new role as executive Vice-Chairman. He also remains a shareholder of Troy, and a member of the board and the company's executive committee. Therefore, we think he remains committed to the business and its longer-term success.

Ure is Head of Responsible Investment at Troy, alongside his fund management responsibilities. He is therefore stepping back from his role on this fund to focus on developing the responsible investment process used throughout the firm and managing the Troy Trojan Ethical Income Fund. He will remain co-manager with Hutchins of the Troy Income & Growth Investment Trust after Brooke retires.

New lead manager from 1 January 2022

Hutchins background and experience makes him well placed to lead on this fund. He has learnt from a number of excellent fund managers over his career to hone his approach to investing in quality companies for income.

Hutchins joined Troy in 2019 from Ninety One (previously Investec) where he was lead manager of the UK Equity Income fund, co-manager of the Global Quality Equity Income fund and led the UK research process. He was a senior member of the Investec Quality team, which invested in a similar way to Troy, with the aim to reduce volatility and limit losses in a falling market. His experience of investing high-quality global companies is relevant to the Trojan Income fund, which makes use of its ability to invest up to 20% overseas.

Before this he managed UK equity funds at Columbia Threadneedle, delivering strong performance on a variety of funds. He began his career in 2007 at Aviva Investors and became a dedicated UK equity analyst. Over his career he has worked with well-regarded income investors such as Dan Roberts, Richard Colwell and Chris Murphy.

Since he has joined Troy we have met him on a number of occasions and have been impressed with the continuity of his investment approach and views with other Troy fund managers. He has a clear focus on investing in quality, stable businesses that can pay growing dividends. He also has the support of Troy’s wider investment team of 14, which work collaboratively with a common approach to investment.

What will this mean for investors?

We believe there will be few changes in the way the fund is managed. There is a shared approach to investment across Troy, which provides a consistent framework in which fund managers work. We expect there to be a continued focus on sheltering capital and a growing income, hallmarks of the fund since launch in 2004.

Brooke’s retirement was not unanticipated, and we feel Troy has done a good job in managing this transition by building strength in depth within the team ahead of time. We view Hutchins as a talented and diligent investor, well suited to the Troy approach. With the support of the wider team, we expect the established and proven investment philosophy will be maintained and well executed.

That said, our conviction is inevitably tested during fund manager changes. While we continue to believe the fund has long-term performance potential and it remains on the Wealth Shortlist, we are mindful the fund is losing an experienced manager. We’ll continue to monitor progress and inform investors if our views change.

Please note this fund currently has a holding in Hargreaves Lansdown PLC.

Read the Troy Trojan Income fund research update