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 26/06/2017|
The Fund produced a return of +3.9% during the month compared to +4.4% for the FTSE All-Share Index (TR).
The Fund’s cash position, which is held to provide dry powder should a better investment climate arise, accounted for much of the drag versus the market.
Despite continued political uncertainty surrounding US tax reform and the upcoming UK general election, measures of market volatility have remained remarkably subdued. Even after their robust 2016 performance, UK equities have continued to steadily climb a wall of worry, delivering their strongest monthly return so far this year. The market leadership during the period was both broader than has been the case in recent months and had a greater overlap with holdings within the Fund.
Vodafone, which has historically delivered much of its return via dividends, experienced a share price rally of +16.3% following robust full-year results and a deal to carve out its troublesome Indian business. Royal Mail, which also released results in the month, rallied +9.7%, after reminding investors of its cash-generative qualities. At the same time Burberry delivered a healthy +12.5% rebound after a disappointing April trading statement cast doubts over sales growth in the US and the company’s relatively new beauty businesses.
Also amongst the FTSE 100 top decile of performers in the month were the UK pharmaceutical stocks, Unilever and the relatively recently-purchased Reckitt Benckiser.
What these stocks have in common (with the exception of Burberry) is that, during the economic optimism that followed President Trump’s election, investors discarded them in favour of more ‘exciting’ investment opportunities. Now that ebullience is fading investors are once again rebuilding their holdings in these high-quality, income-generating stocks.
|Top 10 Holdings||Fund (%)|
|Total Top 10||30.5|
|35 other holdings||57.0|
|Cash & equivalent||12.5|
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)