Fund Objective

The Trojan Investment Funds all have an absolute return objective and any comparisons against indices are for illustrative purposes only. The Trojan Income Fund is an equity biased fund that aims to provide growing levels of income that are in excess of the yield offered by the UK equity market.

View on Past Performance

The fund returned -1.8% during the month. After a very disappointing September, equity markets fell further in October. The FTSE All Share Index produced a return of -10.9% during the month. This gives the past two months the dubious honour of being the second and third worst monthly performances after October 1987.We are pleased to report that the Fund held up well amid these very difficult conditions. As we expected in last month's fact sheet, investors have become more discerning and large cap, liquid blue chips have outperformed domestic small and mid cap stocks. By comparison, the FTSE 250 mid cap index fell 20.1% in October.Following these market falls we have become much more optimistic about future returns available from stock markets over the long term. During October we made a major shift in the Fund to increase exposure from 43% to 63%.This was achieved by adding to a number of existing holdings such as Johnson & Johnson, Cadbury and Tesco. We added new holdings in Reed Elsevier and BG Group. In addition, we acquired further equity exposure via a FTSE 100 Index Future.

Fund Details