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 11/12/2017|
The Fund produced a return of +0.6% in October compared to +1.9% for the FTSE All-Share Index (TR) which again clambered to new highs.
Strong global manufacturing data and robust global earnings growth added to confidence in a synchronised global recovery.
In what was a fairly subdued month for the portfolio the performance of Hiscox (+11.6%) and Lancashire (+12.6%) stood out. Both companies operate, although to slightly different degrees, in the catastrophe insurance markets and as such experienced significant volatility in September as storm Harvey and hurricanes Irma and Maria made their tragic impact.
Such events serve to remind investors of the substantial, albeit uncorrelated, risks involved in writing insurance and may drive the ‘yield tourists’ out of the sector. Although we will not receive a special dividend from either company in 2017, future returns look attractive. We expect insurance rates to harden over the New Year renewals season and this would signal a return to the proper pricing of catastrophe risk.
The catastrophe insurance market is not alone in having become increasingly mispriced in recent years; areas of both bond and equity markets show similar symptoms. It often takes violent dislocations to reassert the balance of risk and reward. These events can be physical, political, economic or financial, but regardless of the nature of the shock it remains our first priority to seek to protect our investors’ capital in such circumstances.
We were very pleased to welcome Mark Wharrier into Troy’s UK equity income team at the beginning of the month. His 20 years of experience in managing UK equities will be an invaluable asset as we strive to deliver sustainable, less volatile returns to our investors.
|Top 10 Holdings||Fund (%)|
|Total Top 10||30.2|
|36 other holdings||60.8|
|Cash & equivalent||9.0|
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)