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 22/03/2018|
The Fund produced a return of -3.3% in January compared to -3.3% for the FTSE All-Share Index (TR).
This was a difficult month for equity markets as the volatility that began in January continued, exacerbated by central bank comments in both the US and UK which hinted at faster than expected rate increases.
The expectation of higher rates created downward pressure on the utility and consumer goods holdings in your Fund and more than offset the positive contribution from individual stocks such as Royal Mail, Equiniti and Compass Group which generated strong positive returns.
Although this has been a challenging market for the Fund, the opportunities to add to quality franchises are beginning to emerge.
We have continued to build the holding in RELX Group which is the kind of high-quality cash-generative business that will drive the Fund’s income growth forward. The company continues to generate solid organic growth and develop new revenue streams, in many cases driven by technology, whilst at the same time returning excess cash flow to shareholders. A further £700m share buyback and a 10% dividend increase were announced last month. There were also notable dividend increases announced from our holdings in Unilever (+14%), Schroders (+23%) and Lloyds (+20%). These are significant increases and are a function of long-term initiatives to create value for shareholders. While such shares may be out of favour at present, they are companies which have significant long-term earnings and dividend growth potential. We will continue to use market volatility to add to such holdings.
|Top 10 Holdings||Fund (%)|
|Procter & Gamble||3.0|
|Total Top 10||32.2|
|37 other holdings||57.7|
|Cash & equivalent||10.1|
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)