Trojan Ethical Income Fund

Troy

Overview

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A fully invested equity strategy that aims to provide investors with growing levels of income with resilient capital growth by investing at least 80% of its assets in UK and overseas equities and equity-related securities.

What does the fund do?

We manage a concentrated portfolio of 30-50 high-quality, cash-generative companies that are capable of consistent dividend growth. At least 60% of the Fund is invested in UK equities with a maximum of 30% invested in overseas equities.

Our long-term approach and focus on reasonably valued, high-quality, sustainable and cash generative companies leads to low portfolio turnover. The fund will invest in accordance with the parameters of its ethical exclusion criteria, which consider ethical issues in relation to: fossil fuels, alcohol, pornography, tobacco and certain types of armaments.

View our ethical exclusion criteria

Why this fund?

We believe our approach to income investing is differentiated through; our conservative quality-orientated process, our focus on total return and our prioritisation of dividend growth above high yield.

We seek a sensible balance between capital and income return in order to deliver above average returns with below average volatility.

The strategy has no explicit yield target and instead we emphasise real growth and long-term sustainability of the income stream above producing the highest dividend yield today. In so doing, we aim to deliver investors a growing yield on their initial investment.

In addition to the Ethical Exclusion Criteria the The Fund integrates ESG and stewardship in accordance with Troy’s Responsible Investment & Stewardship Policy and also adheres to Troy’s Climate Change Mitigation Policy, in accordance with article 8 of SFDR.

View our SFDR disclosure

The team

Commentary

January 2026

Your Fund returned -1.8% during the month, compared to +3.1% for the FTSE All-Share Index TR.

The negative return was entirely driven by weakness across a group of digital and information businesses that the market currently views as being at risk of disruption or heightened competition from Artificial Intelligence (AI). This continues a theme that has been prominent over the past year, with markets increasingly distinguishing between perceived ‘AI winners’ and ‘AI losers’. Having invested through technological change in the past, we are conscious that we are in the early stages of AI adoption, and we continue to assess both risks and opportunities with an open mind. Investors should however take comfort from the fact that the Fund’s digital holdings, including Experian, RELX and Sage, are leading franchises with strong competitive positions, deep customer relationships and long track records of investing in technology and data capabilities, including AI. Valuations across this group have improved meaningfully, with attractive dividend yields available across a number of businesses. Away from the Fund’s digital assets, returns were generally strong in the month. Our objective remains to build a diversified portfolio of high-quality, dividend-paying businesses with resilient cashflows and sustainable long-term compounding potential.

We continued to refine the portfolio with a focus on valuation discipline and diversification of return drivers. We reduced exposure to selected overseas digital holdings, including exiting our position in Paychex and trimming Amadeus, reflecting a desire to manage concentration in asset-light franchises amid increased volatility. We also sold Big Yellow Group and recycled capital into UK holdings with more attractive valuation support and cashflow characteristics, including Howden Joinery and LondonMetric Property. Finally, we exited a small position in Fever-Tree and increased our holding in Admiral following share price declines linked to market concerns around autonomous vehicles.

Key facts

Fund Manager

Blake Hutchins

Inception date

06/01/2016

Currency

Sterling

Available share classes

O, I, S, X

ISIN (O Class)

GB00BYMLFK38 (Acc)
GB00BYMLFL45 (Inc)

Bloomberg (O Class)

TEIFOAC_LN (Acc)
TEIFOIN_LN (Inc)

Sedol (O Class)

BYMLFK3 (Acc)
BYMLFL4 (Inc)

Benchmarks

For more information on the benchmarks used please refer to the ‘use of benchmarks’ section in the fund information sheet

Ongoing Charges

‘O’ (ordinary) shares: 1.02%
‘X’ (platform) shares: 0.87%

‘O’ ACC SHARE CLASS as at 30/10/2024

154.17p

Fund size as at 31/01/2026

£75.7m

‘O’ INC SHARE CLASS as at 30/10/2024

122.40p

Performance

Source: Lipper.

06/01/201631/01/201631/01/202131/01/202331/01/202531/07/2025
Since Launch10 Years5 Years3 Years1 Year6 Months
FTSE All-Share TR136.4137.680.844.521.112.7
Trojan Ethical Income O Acc57.259.018.115.3-3.7-3.3

Discrete Calendar Annual Returns (%)2016201720182019202020212022202320242025
Trojan Ethical Income O Acc810.2-2.923.9-612.1-11.28.25.62.6

Source: Lipper. Since Launch (06/01/2016) to 31 January 2026. Past performance is not a guide to future performance. Performance is calculated on a total return basis, net of fees, in sterling terms.

Risk and Volatility since launch

Source: Lipper.

Risk Analysis Since Launch (06/01/2016)Trojan Ethical Income O AccFTSE All-Share TR
Total Return57.2136.4
Max Drawdown-25.4-35.3
Best Month6.612.7
Worst Month-9.1-15.1
Positive Months59.264.2
Annualised Volatility9.911.8

Maximum Drawdown measures the worst investment period. Annualised Volatility is measured by the annualised standard deviation of the monthly returns. Source: Lipper, as at 31 January 2026. Past performance is not a guide to future performance. Performance is calculated on a total return basis, net of fees, in sterling terms.

Asset allocation

Top 10 holdingsFund %
Unilever4.87926384197463
LSEG4.30843009248755
Compass3.91061809928605
GSK3.85294055242032
RELX3.83838611728002
National Grid3.56013101339885
Reckitt Benckiser3.42638534897818
Roche3.41451055069913
Spirax3.35931721598342
Rentokil Initial3.35169344591312
Total Top 1037.9016762784213
23 Other Equity holdings58.5036288985121
Cash3.59469482306665
Total100

Asset allocation and holdings subject to change. As at 31 January 2026.

Fund literature

Document name Date Open/download Archived documents
Factsheet     View archive Hide archive
Newsletters     View newsletters Hide newsletters

Fund Information Sheet

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Interim Report

 July 2025 View document Download document  

Annual Report

 January 2025 View document Download document  
UCITS KIID     View share classes Hide share classes
Sustainability-related Disclosures     View documents Hide documents

Troy’s Ethical Exclusion Criteria

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Prospectus & Additional Investor Information     View documents Hide documents

Sustainable Investment Labels Statement

Sustainable investment labels help investors find products that have a specific sustainability goal. This fund does not have a UK sustainable investment label as it does not have a sustainable objective as part of its investment objective.  Despite not having a sustainable investment objective, when investing in companies, Troy integrates the analysis of sustainability characteristics into its investment decision-making. Troy also considers the steps companies are taking in relation to climate change mitigation.

Important Information
Past performance is not 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. Returns may increase or decrease as a result of currency fluctuations. This data is provided for information only and should not be reproduced, published or disseminated in any manner. Although Troy considers the data to be reliable, no warranty is given as to its accuracy or completeness. Any comparisons against indices are for illustrative purposes only.  Some of the information contained on this page: (1) is proprietary to Morningstar and/or its content providers​; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. For the full fund disclaimer please refer to the Fund factsheet. Please refer to Troy’s Glossary of Terms available here.

Important information for U.S. persons
The securities described on this website are neither available nor offered in the United States of America (including the District of Columbia or any other territory occupied or possessed by the United States of America) or to U.S. persons (including residents of the United States of America, residents within an area subject to its jurisdiction and U.S. persons who are resident outside the United States of America).

How to invest

Find more information on how to invest in this fund and where it is available.

How to invest

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