| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 65.72 | -6 |
| Intrinsic value (DCF) | 27.65 | -60 |
| Graham-Dodd Method | 0.54 | -99 |
| Graham Formula | n/a |
Troy Income & Growth Trust Plc (TIGT.L) is a UK-based closed-ended equity mutual fund specializing in income and growth investments. Managed by Troy Asset Management Limited, the fund focuses on UK public equities across diversified sectors, emphasizing financial strength, management quality, and market positioning. The fund primarily targets growth stocks, employing fundamental analysis to build a portfolio benchmarked against the FTSE All-Share Index. Formerly known as Glasgow Income Trust plc, it was established in 1988 and is listed on the London Stock Exchange. With a market cap of approximately £161.8 million, TIGT.L appeals to investors seeking stable income through dividends (10p per share in FY2023) and long-term capital appreciation. Its conservative beta of 0.86 suggests lower volatility relative to the broader market, making it a potential choice for risk-averse investors in the Financial Services sector.
Troy Income & Growth Trust Plc offers a balanced investment proposition with a focus on income generation and capital growth. The fund’s FY2023 performance highlights a net income of £10.8 million and diluted EPS of 4.13p, supported by a dividend yield of approximately 3.1% (based on a 10p dividend and current share price assumptions). Its low beta (0.86) indicates resilience during market downturns, but the fund’s reliance on UK equities exposes it to domestic economic risks, including Brexit aftershocks and inflationary pressures. The modest revenue (£11.3 million) and limited cash reserves (£803k) against £4 million in debt could constrain flexibility in volatile markets. However, its disciplined stock selection and Troy Asset Management’s expertise provide a competitive edge. Investors should weigh its income stability against sector concentration risks.
Troy Income & Growth Trust Plc competes in the crowded UK income fund market by leveraging Troy Asset Management’s conservative, quality-focused strategy. Its competitive advantage lies in a high-conviction portfolio of financially robust UK companies, avoiding speculative bets. The fund’s benchmark alignment with the FTSE All-Share ensures transparency, but its active management fees may deter cost-sensitive investors compared to passive alternatives. Unlike peers targeting higher yields through leverage or international diversification, TIGT.L’s UK-centric approach limits geographic risk but may lag during global equity rallies. Its small size (£161.8 million market cap) restricts economies of scale, potentially affecting fee competitiveness against giants like City of London Investment Trust. However, its niche appeal lies in a consistent dividend record and lower volatility, catering to retirees and income-focused portfolios. The fund’s lack of capital expenditures (typical for asset managers) and modest debt suggest prudent financial management, though its cash position is thin for aggressive buybacks or downturns.