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 12/07/2018|
The Fund produced a return of +2.0% in January compared to +2.8% for the FTSE All-Share Index (TR).
During the first weeks of May the market continued unabated in its robust rebound from the first quarter lows. It was only as renewed concerns around emerging markets, US protectionism and the stability of the EU project that the UK equity market experienced a short period of ‘risk-off’ trading towards the end of the month. The UK 10-year gilt yield fell sharply, from above 1.5% to below 1.2%, a level not seen since December 2017.
Although Troy’s investment horizon is long term, there is value in analysing such performance snapshots because they provide an insight into the characteristics of the portfolio. In particular, it was important to see robust capital preservation from the portfolio’s consumer holdings.
Stocks such as Unilever, Compass and Coca-Cola (which make up c.12% of the portfolio) all made robust contributions to the Fund’s performance during this short period of weakness. These stocks, and others within their sectors, have experienced a sustained, and at times painful, derating over recent quarters. The lower valuations on which they now trade reinforces their already strong defensive credentials in periods of pessimism. Both Coca-Cola and Unilever trade on dividend yields in excess of 3%. Compass has typically paid a much more modest dividend but currently yields 2.3%. All three stocks trade on price/earnings multiples that are more attractive than their five-year averages. Such snapshots provide us with increased confidence as the market cycle matures.
|Top 10 Holdings||Fund (%)|
|Procter & Gamble||3.0|
|Total Top 10||36.6|
|35 other holdings||53.5|
|Cash & equivalent||9.9|
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)