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 21/02/2018|
The Fund produced a return of -1.2% in January compared to -1.9% for the FTSE All-Share Index (TR).
An encouraging update from Next (+13.6%) came with the news that the company would use its prodigious cash flow to start a new share buyback programme. Next has been a superb example of how intelligent capital allocation can enhance shareholder returns in the long term. In fact, over one third of the company’s share capital has been bought back over the past decade.
The performance of equities and the Fund was held back by the impact of rising bond yields. Interest rates and bond yields have risen from low levels following firmer economic data, recently boosted by the Trump tax cuts. Market earnings growth has accelerated over the past year in response. However, this growth is from a return on equity base which is high by historic standards.
Cost pressures and higher interest rates, not to mention ongoing technological change, may act as a brake on strong market earnings growth. We focus on companies where healthy returns and growth can be sustained in the long run and prefer shares where better economic conditions are helpful for the investment case, rather than being essential. Ultimately, this is what drives the sustainable income and capital growth we seek to deliver in the Fund.
The total estimated Fund dividend for the January year end is 3.4p, an increase of 2.4% year-on-year. Rising cash levels within the Fund and a weaker US dollar both detracted from the total sterling income generated. However, we feel positive about the future income generating capacity of the Fund, especially with the number of opportunities to invest increasing.
|Top 10 Holdings||Fund (%)|
|Procter & Gamble||2.9|
|Total Top 10||31.0|
|37 other holdings||58.5|
|Cash & equivalent||10.5|
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)