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.


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 08/12/2016
Accumulation Shares
Income Shares
Fund Size

October 2016

During October the UK 10 year gilt yield rose just under half a percentage point to 1.24%, the largest one-month jump since the aftermath of the credit crisis.

Equity investors seem content to take on more risk and crucially inflation expectations have increased materially.  The impact of weaker sterling and a resurgent oil price drove input price inflation to +7.2%, a sharp increase when compared to the heavily deflationary numbers recorded at the turn of the year.

Despite dull performances in recent weeks from many of the Fund’s more defensive investments, we ultimately believe that most of them exhibit pricing power, which should ensure that margins can be maintained over the long term.  Many of the portfolio’s infrastructure, utility and low risk property portfolios have an inflation-linked aspect to their revenue streams.  Elsewhere in the portfolio innovation and strong brands should enable your investments to transfer cost increases efficiently from producer to consumer.  This transmission is normally conducted with minimal noise for obvious reasons but we were treated to an unusual insight into this process when a swathe of Unilever brands temporarily and very publically became unavailable on the Tesco website.  Despite initial retailer resistance against price increases for products including Marmite, we expect many of the price increases are being successfully passed through.




Another company that has suffered material input inflation, but of a very different sort, is Sky.  The last round of Premier League Football broadcast rights were priced some 83% above previous prices.  During the month we attended Sky’s Capital Markets Day which detailed Sky’s ability not only to put through price increases but also to innovate within this fast changing sector to mitigate the margin impacts of this inflation.  A strong pipeline of new products, culminating in Sky Q, and a truly exciting portfolio of home-grown television dramas combined with operational cost cutting will allow Sky to stave off margin compression whilst continuing to grow revenues and earnings.  On a P/E multiple of less than 14x and a yield above 4% we think Sky continues to represent attractive value and we would add further to our holding at levels not far below here.







Top 10 HoldingsFund (%)
Unilever 4.1
Novartis 3.0
Nestlé 3.0
Royal Mail 3.0
National Grid 3.0
GlaxoSmithKline 2.8
American Express 2.8
Land Securities 2.7
Coca-Cola 2.7
Lloyds 2.7
Total Top 10 29.8
36 other holdings 61.2
Cash & equivalent 9.0
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
  • 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