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 23/01/2017|
The final month of 2016 saw equities continue to rise sharply but with a broader leadership than in prior months.
Since June the markets have been dominated by expectations of a stronger US economy juxtaposed against uncertainty and downgrades to growth in the UK. This has most notably manifested itself in a sharp fall in the value of sterling against the dollar, the various connotations of which we have discussed previously in these commentaries.
In September we suggested the sharp currency move may have tilted the playing field in favour of US companies looking to acquire UK assets. We did not have to wait long before the precedent set by Softbank’s July offer for ARM was followed. In early December, 21st Century Fox was forced to announce it was in discussions to acquire the remaining 61% of Sky plc that it did not already own. Shortly afterwards a formal and recommended 1075p offer was put to investors.
The deal represents a 36% premium to the undisturbed price but a more paltry increase on the higher prices of even a few weeks prior. Rupert Murdoch’s opportunistic approach was undoubtedly enabled by currency.
It was only in 2011 that a pre-demerger News Corp withdrew its 700p opening bid for Sky in the midst of the phone hacking scandal. The uplift in the offer price over the intervening period represents a market beating return. Additionally, the failure of the 2011 approach largely explains why Sky still trades at a 9% discount to the offer price. In the current environment such a return, albeit far from guaranteed, represents an attractive risk reward profile and for this reason we continue to hold the shares.
|Top 10 Holdings||Fund (%)|
|Total Top 10||31.7|
|36 other holdings||59.4|
|Cash & equivalent||8.9|
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)