Trojan Ethical Income Fund
The investment objective of Trojan Ethical Income Fund is to seek to provide income with the potential for capital growth in the medium term. Its investment policy is to invest substantially in UK and overseas equities. Trojan Ethical Income Fund may also invest in fixed interest securities, indices, deposits, collective investment schemes and money market instruments.
The fund will invest in accordance with the parameters of its ethical investment criteria, which consider ethical issues in relation to: fossil fuels, pornography, tobacco and certain types of armaments. A document setting out the fund’s ethical investment criteria is available here.
In addition to the O share class referred to on this page, I & S Classes are also available. Please contact us for more information.
Derivatives may be employed for the purposes of efficient portfolio management.
Investment Performance will not be shown until one calendar year after the fund's launch due to regulatory requirements. Similarly, no information relating to Trojan Ethical Income Fund is included in either the Interim Report or Annual Report.
|'O' Share Class||Price 25/09/2017|
The Fund produced a return of +0.6% in August compared to +1.4% for the FTSE All-Share Index (TR).
As parliamentarians return from their summer recess, the speculation and political posturing around Brexit will resume in earnest and this debate will inform discussions around the merits, or lack thereof, of investing in the UK domestic economy.
The market-cap weighted FTSE All-Share Index remains dominated by companies with global revenue bases. UK investors, including Troy, have typically taken advantage of this bias to diversify away from the pure UK centric earnings. With the fall in sterling seemingly arrested and even experiencing something of a bounce, the pressures of input cost inflation are abating and the champions of domestic growth are becoming more vocal.
Given this backdrop, it is interesting that a significant proportion of the return generated by the Fund during the period came from the discretionary goods sector, where the Fund has much of its exposure to UK-focused companies. Investments in WH Smith (+5.1%), Next (+4.5%) and the recently added Domino’s Pizza (+3.0%) all performed well.
However, the decision to hold these investments, and to invest in the high-return pizza franchise for the portfolio, are stock specific. We have admired Domino’s for several years. So when the market’s faith in plans to encourage franchisees to expand store numbers faltered, we took the opportunity to add the stock to the portfolio on a 3.1% yield.
Although we are encouraged by signs of stability in sterling, we are not relying on macro-economic tailwinds to drive returns. Rather, we prefer to invest on the basis of the strengths of each company’s individual investment case.
|Top 10 Holdings||Fund (%)|
|Total Top 10||29.5|
|36 other holdings||61.0|
|Cash & equivalent||9.5|
How to Invest
You may invest directly, via a broker or adviser, or through a number of online fund platforms.
- Fund Manager
- Inception Date
- Available Share Class
O, I, S
- ISIN (O Class)
- Bloomberg (O Class)
- Sedol (O Class)