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 16/10/2018|
The Fund produced a return of -0.1% during the month, compared to +0.7% for the FTSE All-Share Index (TR).
Midway through the month Jardine Lloyd Thompson (JLT) announced it had reached an agreement to be purchased by Marsh & McLennan (MMC) at an offer price of £19.15 per share, representing a 34% premium to the prior day closing price. JLT is an insurance and reinsurance broker focussed on specialty areas such as aviation and political risk. Its market cap is less than 15% the size of MMC, yet it holds a top-five market position.
We have always been impressed by JLT’s management, and this was integral to the reasoning behind our purchase at the Fund’s launch. They have steered the company from being a wholesale broker centred on London to a global leader in specialty risk.
The company has invested continually to ensure they can offer genuine added value as the role of brokers has evolved into sophisticated risk modelling, tailored to clients’ profiles. The shrewd acquisition of Towers Watson’s reinsurance business in 2014 brought valuable analytics capabilities.
Validation of JLT’s strategy can be found in their 6% average annual organic sales growth over the past decade. MMC recognised the long-term potential that should stem from the company’s focus on markets in which it has unique expertise and the capital investments made to face a technology-driven modern world.
With attractive valuations and a depressed currency, the UK appears good value to would-be international acquirers. It seems unlikely JLT will be the last in this year’s bout of UK acquisitions by foreign buyers.
|Top 10 Holdings||Fund (%)|
|Procter & Gamble||3.1|
|Total Top 10||37.7|
|34 other holdings||52.5|
|Cash & equivalent||9.8|
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)