'The Lockdown Extension Won't Hurt British Stocks'

The Daily Telegraph Saturday 26 June 2021 Fund of the week ‘The lockdown extension won’t hurt British stocks’ As society waits for normality, Trojan Income’s Blake Hutchins tells Will Kirkman why he prefers a slow and steady approach to ‘racy’ shares

ince its launch in 2004, the Tro- There will be absolutely no change jan Income fund has been prized IN FOCUS in how we manage the fund. We have TROJAN INCOME S by investors who are focused just an incredibly clear investment process as much on preserving their wealth as that we have always stuck to. How does the fund measure up? growing it. Total return (%) The £2.7bn fund has beaten the ARE THERE ANY STOCKS YOU 300 returns of the London stock market WOULD NEVER INVEST IN? KEY over the past 17 years and its manager, We avoid any company with a lot of bor- Trojan Income 200 FACTS Francis Brooke, has also avoided the rowing, that spends a lot of money, or is worst of its falls. Blake Hutchins overly reliant on the health of the econ- Experian 100 More recently, however, it has omy to perform well. Benchmark index lagged the market’s recovery from — That means we avoid the likes of Launch date Credit data giant 0 its pandemic crash. Over the past 12 banks, life insurers, mining compa - September 2004 Experian is steady months the fund, which invests mostly nies, airlines, cruise ship operators and and reliable and has -100 Total return in British dividend-paying stocks, has housebuilders. You won’t find those a great track record 2005 2010 2015 2020 since launch gained just 6pc, against a 19pc return types of company in the fund. of increasing its 251pc from the FTSE All-Share, a barometer dividends over a long Where does the fund invest? for the London market. HOW WILL THE DELAY TO THE Total return period of time. Mr Brooke, the portfolio’s manager EASING OF COVID RESTRICTIONS year to date But investors have Consumer products since its launch, is meanwhile step - AFFECT BRITISH STOCKS? 6pc left companies like ping down from the fund at the end of Some of the companies we own in the Industrials this on the shelf since Annual charge this year. Blake Hutchins, appointed fund have been affected, such as Com- November’s coronavirus 0.86pc co-manager of the fund last year, is pass, the caterer, and InterContinen- Healthcare breakthroughs. (X share class) taking over the reins. tal Hotels Group, owner of the Holiday Racier shares whose Mr Hutchins tells Telegraph Money Inn chain. But it will be a short-term Financials Total number fortunes are tied to those about the changeover and the impact impact and the stock market has taken of stocks of the economy have led Basic materials 39 of the delay in the easing of Covid the news in its stride. the way in Britain’s stock restrictions on his stocks, and explains Companies are valued on the basis %1020304050 market recovery. SOURCE: FE FUNDINFO why he won’t be chasing the returns of the aggregate of all their future cash of the “racy” shares that have led the flows, so a few weeks’ or months’ delay Top 10 holdings (as of 30/04/2021) market recovery. to the reopening won’t have a huge Diageo impact over the long term. It’s a matter 1. 6.3pc 6. Paychex 3.6pc WHO IS THE FUND FOR? of when, not if, the country reopens. 2. Reckitt Benckiser 5.6pc 7=. Compass Group 3.5pc The more cautious investor who has a I always tell investors to remem - 3. Experian 5.5pc 7=. Nestlé 3.5pc long period of time before they need ber that the markets are three to six to spend their savings. Our inves - months ahead of the real world. While 4. Unilever 5.4pc 9=. Croda 3.4pc tors always hold the fund in the more the front pages of the newspapers might 5. Relx 5pc 9=. GlaxoSmithKline 3.4pc defensive parts of their portfolios. be focused on reopening, the business pages and the stock market are well HOW DO YOU PICK STOCKS? ahead of that. AND WHAT’S BEEN YOUR HOW ARE YOU PAID? We believe in focused portfolios of WORST INVESTMENT? I am paid a salary plus bonuses. A large around 30-40 companies. We’re look- WHAT HAS BEEN YOUR BEST Intertek, the testing and certification proportion of my bonus is paid into Troy ing for firms with strong competitive INVESTMENT? company, has produced fairly pedes- funds. positioning, be that from great brands In the 18 months I’ve been involved trian returns since we bought the or superior research and develop - in the fund, beer and spirits producer shares last year. WHAT WOULD YOU HAVE ment. Then we can be confident they Diageo has been a stellar investment. BEEN IF YOU WEREN’T A will be around for decades and gener- Markets Hub It endured a difficult pandemic, DO YOU INVEST YOUR FUND MANAGER? ate attractive returns over that period. See live financial data and because bars and pubs were closed, but OWN MONEY IN THE £3,500 I probably would have been has managed that downturn well and is FUND? a tennis player. My dad and WILL YOU CHANGE THE FUND build your own portfolio benefiting from the trend for custom- Shares in Troy, the com- What £1,000 brother played profession- WHEN YOU TAKE CHARGE? with our interactive ers to spend more on premium spirits. pany behind my fund, are invested at ally and my sister had a world Francis is stepping off the fund, but he investment tool The shares have recovered strongly as my largest investment and launch would ranking. will stay working full-time, managing telegraph.co.uk/ economies have reopened following my second biggest is in the be worth today I was pretty good, but not Troy, the fund group. markets-hub lockdowns. Trojan Income fund. quite good enough.