TIGT : Defensive stocks help Troy Income & Growth outperform
Over the year that ended on 30 September 2014 Troy Income & Growth generated a total return on net assets of 10.1%, well ahead of the 6.1% returned by the FTSE All-Share Index. The fund’s rating barely changed on the year and so the return to shareholders was 10.0%. The full year’ dividends totalled 2.225p – 4.7% up on last year’s dividend. The manager’s report stresses that, while Troy Income & Growth ranks thirteen of nineteen funds since they were appointed as managers in 2009, the net asset value is the least volatile of any of the funds in its peer group – in line with the fund’s objective.
The results statement mentions Reckitt Benckiser and Nestle as examples of stocks “with sustainable franchises and excellent track records of generating returns” and says these two rose by 22% and 15% respectively over the year. It also says that Rathbones, which returned 26% over the year, benefited from its ability “to leverage its fixed cost infrastructure to grow both organically and by acquisition at a time when the smallest players are struggling to deal with regulatory burdens”.