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 20/09/2018|
The Fund produced a return of +0.5% during the month, compared to -2.8% for the FTSE All-Share Index (TR).
August markets were unsettled this year by a sharp fall in the Turkish lira. The vulnerability of this currency has long been flagged by strategists and economists who have cited the country’s heady levels of debt (denominated disproportionately in a strengthening US dollar) combined with escalating political instability as a worrisome mix. Although the lira has been steadily weakening against the dollar for some time it took the detention of a US pastor to precipitate an acute phase of the crisis.
The weakness in the Turkish currency, and even the wider impact on emerging market exchange rates and debt, have had few direct ramifications for your portfolio.
However, this episode is illustrative of the way in which seemingly unsustainable imbalances and mispricings can persist, unchallenged, for extended periods, often only finally being reflected in asset prices following an unforecastable trigger event. As long-term investors it is our job to identify the imbalance and mitigate the associated risk, rather than try and precisely predict the timing of the trigger.
In mid-August the S&P 500 set a new record for its longest bull market, surpassing the duration of the 1990s run that ended in the mania of the Dotcom bubble. Today’s cycle has not been without its fair share of imbalances and capital miss-allocation. It is for this reason we have been reducing risk within the portfolio; decreasing the Fund’s exposure to more richly valued holdings such as Burberry and less liquid names like Dairy Crest. Meanwhile, we have added to quality defensive franchises such as RELX and Reckitt Benckiser. It has been encouraging to see these changes contribute to the Fund’s resilience in recent weeks.
|Top 10 Holdings||Fund (%)|
|Procter & Gamble||3.2|
|Total Top 10||38.5|
|34 other holdings||51.9|
|Cash & equivalent||9.6|
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)