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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 28/04/2017
112.86p
Accumulation Shares
Income Shares
109.50p
Fund Size
£56M

March 2017

Your Fund returned +1.3% during the month compared to +1.2% for the FTSE All-Share Index (TR).

The market was led higher during the month by a much broader spectrum of companies than has typically been the case in recent months.  Inmarsat led the way for the Fund, rising by 20%, but amongst the best performers was Next plc. 

We have been steadily adding to our holding in this company as the valuation has become more attractive, most recently buying shares at the beginning of March.  We continue to see the franchise as robust and to admire the management team for its disciplined approach to capital allocation. The business faces considerable challenges but remains highly cash generative. 

This rigour has manifested itself not only in the management’s reinvestment decisions but also in their readiness to return excess cash to shareholders, whether by share buybacks or more latterly via quarterly 45p special dividends.

Special dividends have become increasingly popular in recent years (making up over 7% of all dividend payments in 2016) as companies seek to return surplus retained earnings to shareholders. The Fund has benefited from Troy’s natural inclination to invest in cash-generative companies with a higher than average propensity to pay specials.

This trend is complimented within the Fund’s portfolio by a robust and growing stream of ordinary dividends.  The devaluation of sterling undoubtedly remains a tailwind but we also see material room for underlying dividend growth within many of our preferred sectors.  The announcement of a 12% uplift in Unilever’s ordinary dividend at its recent strategic review is a timely demonstration of this potential.


  

 

 

 

 

 

Top 10 HoldingsFund (%)
Unilever 4.3
GlaxoSmithKline 3.8
Lloyds 3.3
Royal Mail 3.0
National Grid 3.0
Novartis 2.9
American Express 2.7
Land Securities 2.6
Compass Group 2.6
Colgate-Palmolive 2.6
Total Top 10 30.8
36 other holdings 57.9
Cash & equivalent 11.3
Total 100.0

 

Past performance is not necessarily a guide to future performance. The value of a fund and any income from it may go down as well as up and investors may get back less than they invested. Changes in rates of exchange may cause the value of investments to go up or down. Any data is provided for information only and should not be reproduced, published or disseminated in any manner. Although Troy considers data to be reliable, no warranty is given as to its accuracy or completeness. Any comparisons against indices are for illustrative purposes only.

How to Invest

You may invest directly, via a broker or adviser, or through a number of online fund platforms.

Find Out More

  • Fund Manager
    Hugo Ure
  • Inception Date
    06/01/2016
  • Currency
    £ Sterling
  • Available Share Class
    O, I, S
  • ISIN (O Class)
    GB00BYMLFK38 (Acc)
    GB00BYMLFL45 (Inc)
  • Bloomberg (O Class)
    TEIFOAC_LN (Acc)
    TEIFOIN_LN (Inc)
  • Sedol (O Class)
    BYMLFK3 (Acc)
    BYMLFL4 (Inc)

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