This site uses some unobtrusive cookies to store information on your computer. These cookies are essential, as the site won't work as expected without them. These cookies are set when you submit a form, login or interact with the site by doing something that goes beyond clicking on simple links. 

We also use some non-essential cookies to anonymously track visitors or enhance your experience of the site. If you're not happy with this, we can disable these these cookies but some features of the site may not work. By using our site you accept the terms of our Privacy Policy.

Close

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 19/10/2017
118.51p
Accumulation Shares
Income Shares
113.20p
Fund Size
£61M

August 2017

The Fund produced a return of +0.6% in August compared to +1.4% for the FTSE All-Share Index (TR).

As parliamentarians return from their summer recess, the speculation and political posturing around Brexit will resume in earnest and this debate will inform discussions around the merits, or lack thereof, of investing in the UK domestic economy.

The market-cap weighted FTSE All-Share Index remains dominated by companies with global revenue bases.  UK investors, including Troy, have typically taken advantage of this bias to diversify away from the pure UK centric earnings.  With the fall in sterling seemingly arrested and even experiencing something of a bounce, the pressures of input cost inflation are abating and the champions of domestic growth are becoming more vocal.

Given this backdrop, it is interesting that a significant proportion of the return generated by the Fund during the period came from the discretionary goods sector, where the Fund has much of its exposure to UK-focused companies.  Investments in WH Smith (+5.1%), Next (+4.5%) and the recently added Domino’s Pizza (+3.0%) all performed well.

However, the decision to hold these investments, and to invest in the high-return pizza franchise for the portfolio, are stock specific.  We have admired Domino’s for several years.  So when the market’s faith in plans to encourage franchisees to expand store numbers faltered, we took the opportunity to add the stock to the portfolio on a 3.1% yield.

Although we are encouraged by signs of stability in sterling, we are not relying on macro-economic tailwinds to drive returns. Rather, we prefer to invest on the basis of the strengths of each company’s individual investment case.


 

 

Top 10 HoldingsFund (%)
Unilever 4.6
GlaxoSmithKline 3.2
National Grid 3.2
Lloyds 3.1
Novartis  2.6
Royal Mail 2.6
American Express 2.6
Vodafone 2.6
Compass Group 2.6
Wells Fargo 2.4
Total Top 10 29.5
36 other holdings 61.0
Cash & equivalent 9.5
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)

Related Literature