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 23/05/2017|
The Fund produced a return +0.6% during the month compared to -0.4% for the FTSE All-Share Index (TR).
Amid the announcements on US tax reform and the hubbub around the French presidential election, a solid set of first-half results from WH Smith went largely unnoticed.
However, the statement reveals that an interesting milestone has been achieved. Over the last ten years, the combined value of share buybacks conducted (£415m) and dividends paid (£414m) by WH Smith has now materially exceeded the total market capitalisation of the company as it stood in 2007 (£728m).
During the month we also met with the CEO of Lloyds Bank, another company that has placed the return of cash to shareholders at the core of its strategy. In April Lloyds went ex the second of two 0.5p special dividends it has announced since returning to the dividend list in 2015. The special dividends relate to capital that has been generated in excess of that needed to fund the growth of the business and meet its regulatory capital requirements.
Although these two companies are very different in many ways, both management teams have a clear focus on the returns generated by the business rather than a myopic focus on the earnings per share line. Lloyds has for many years concentrated on the quality rather than the size of its loan book and WH Smith on profitability of each square foot of retail space rather than adding ever more stores. In both cases cash has been returned to shareholders rather than invested in expansionary projects with a poor risk return profile.
Such actions are not only beneficial for the Fund’s income account but more importantly evidence the robust capital allocation ethos that will underpin strong long-term capital returns.
|Top 10 Holdings||Fund (%)|
|Total Top 10||30.4|
|36 other holdings||57.0|
|Cash & equivalent||12.6|
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)