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 23/03/2017|
Your Fund returned +4.2% during the month compared to +3.1% for the FTSE All-Share Index (TR).
An audacious, but short-lived, approach for Unilever from Kraft Heinz reawakened investors to the value that resides in the high-quality defensive businesses, many of which were dismissed as bond proxies while the ‘Trumpflation’ trade was in full swing. As a broad range of consumer goods companies rallied in response to the bid, your Fund was able to deliver a strong performance in both relative and absolute terms, something that has been difficult to achieve over much of the last six months.
The relative performance gap between the FTSE All-Share and the Fund since July has been largely driven by a bias within Troy’s investment style. Despite quality investments being out of favour for a period, we retained our conviction that these stocks will deliver superior long-term risk-adjusted returns. Rather than rotate out of such investments and risk being whipsawed by a febrile market we took the opportunity to add to holdings such as Unilever.
Conversely, the impact of the Fund’s ethical criteria on its performance relative to our other income mandates was relatively modest. In a year when the price of US crude rose 45%, this may seem counter-intuitive but our investment style means that most Troy funds have persistently had only modest exposures to highly cyclical and capital-intensive industries. The impact of this difference in portfolio construction is further mitigated by investments in a few high-quality engineering businesses where we believe capital discipline compensates for taking on cyclical exposure.
Over a year after the Fund’s launch we are pleased to have weathered the storm of political uncertainty. The Fund has delivered a robust absolute performance to investors and is well positioned to deliver further growth in income over the next twelve months.
|Top 10 Holdings||Fund (%)|
|Total Top 10||30.9|
|36 other holdings||57.4|
|Cash & equivalent||11.7|
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)