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 27/07/2017|
The Fund produced a return of -1.9% in June compared to -2.5% for the FTSE All-Share Index (TR).
This was a difficult month for equity markets and notably so for the UK. The inconclusive general election result achieved the opposite of the Prime Minister’s stated aim to secure a clear majority and thus strengthen Britain’s hand in the Brexit negotiations.
Instead, a minority government, supported by the DUP, is entering into the most complex process the UK has undertaken for fifty years. This political uncertainty, combined with weakening consumer demand in the UK and inflation is eroding real earnings and sapping spending power. With the UK savings ratio falling to an all-time low of 1.7% of disposable income, and consumer credit still rising, the pressure to relax the purse strings on public spending is coming from both sides of the political aisle. Growth in the first quarter of 2017 slowed to just 0.2% - the slowest rate in the G7.
It is hard to be optimistic about equities at present, but when such a sentiment is widely held it can be a bullish indicator. The portfolio contains holdings in many companies that are well able to generate sufficient cash flow to grow their dividends and, although there are plenty of dark clouds at present, we remain confident about the income generation potential of the Fund.
On the 28th July an enhancement of the Fund’s ethical investment criteria will be formally introduced. Restrictions on investment in alcohol, gambling and high interest rate lending will be implemented and the criteria on armaments will be modified. The new investment criteria are shown overleaf. The Fund has been compliant with these additional criteria for some months. We believe these changes assist in meeting the needs of investors seeking an ethically invested fund. The change will not alter the investment style, the management approach, or effect the risk profile of the fund.
|Top 10 Holdings||Fund (%)|
|Total Top 10||30.3|
|35 other holdings||57.4|
|Cash & equivalent||12.3|
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)