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Trojan Ethical Fund

The investment objective of the Trojan Ethical Fund is to provide capital growth (net of fees), ahead of inflation (UK Retail Prices Index), over the longer term (5 to 7 years).  

The Trojan Ethical Fund is a multi-asset fund which seeks to deliver a similar profile of returns to the Trojan Fund.  The Fund’s asset allocation will be broadly in line with that of the Trojan Fund but assets will be invested subject to ethical exclusion criteria. A document setting out the fund’s ethical exclusion criteria is available here

In addition to the O share class referred to on this page, S Classes are also available. Please contact us for more information.

'O' Share Class Price 18/09/2020
Accumulation Shares
Income Shares
118.33p
Fund Size
£159m (31/08/20)

August 2020

Your Fund returned +1.3% during the month compared to +2.4% for the FTSE All-Share Index (TR).

The recovery in US stock markets since the end of March has been breath-taking.  While some moves appear rational, buoyed by lower bond yields and supportive monetary policy, growth and stability have been sought-after qualities.  The narrative of a ‘K’-shaped recovery, in which some sectors gain from the pandemic such as online retailers, as others like airlines suffer, is explicable.  Yet there is a growing sense that over-extrapolation and exuberance is being built into some share prices.

This bifurcation of the stock market has led to talk of a bubble.  While valuations have risen and the number of trillion dollar companies, like Apple, Microsoft and Alphabet, makes headlines, comparisons with the 2000 tech bubble appear easy but are misguided.

The difference today is that these companies are profitable and not buoyed by an internet investment boom.  As Christopher Wood of Jeffries points out, “For the moment these [Big tech] companies’ dominant share of total market cap does not look out of line with their share of earnings when a premium is put on the quality of their earnings.  On this point, Facebook, Apple, Alphabet (Google), Netflix, and Microsoft account for a combined 23.5% of S&P500 total market cap and 14.8% of the S&P500 2020 consensus forecast earnings.”

Resilience, permanence, scarcity and sustainability are qualities we look for in the equities we want to hold. The past six months prove how difficult it is to value the equity of a business with declining cash flows, especially when they are saddled with debt.  There is, no doubt, room for rotation into the distressed parts of the market over the short term.  Should that occur, we have plenty of dry powder to increase our equity exposure to more resilient businesses if they fall from favour.

 

 

 

 

Performance is calculated on a total return basis, net of fees, in sterling terms.

Source: Lipper, Link Fund Solutions Limited. 

Total Return 22/03/2019
Since Launch
31/08/2019
1 Year
29/02/2020
6 Months
Trojan Ethical O Acc +18.4% +8.8% +10.0%
UK Retail Price Index +3.2% +0.9% +0.8%
FTSE All-Share TR -10.4% -12.6% -7.6%
Bank of England Base Rate +0.8% +0.4% +0.1%
Discrete Calendar Annual Returns (%) 2019 2020
Trojan Ethical O Acc +7.2% +10.4%

Performance is calculated on a total return basis, net of fees, in sterling terms.

Source: Lipper, Link Fund Solutions Limited. Since Launch (29/03/2019) to 31 July 2020.

Risk Analysis Since Launch (31/05/2001) Trojan Ethical O Acc FTSE All-Share TR
Total Return +18.4% -10.4%
Max Drawdown -8.9% -35.3%
Best Month +4.6% +4.9%
Worst Month -2.0% -15.1%
Positive Months +76.5% +58.8%
Annualised Volatility +5.6% +18.2%

Performance is calculated on a total return basis, net of fees, in sterling terms.

Maximum Drawdown measures the worst investment period. Annualised Volatility is measured by standard deviation of annual returns. 

Source: Lipper, Link Fund Solutions Limited.  

Top 10 holdings (excluding government bonds) Fund %
WisdomTree Physical Gold 7.0
Microsoft 5.3
Invesco Physical Gold 4.9
Alphabet 4.4
Visa 4.1
Medtronic 4.0
Nestlé 3.7
Unilever 3.7
Colgate-Palmolive 2.4
Agilent Technologies 2.0
Total Top 10 41.3
8 Other Equity holdings 9.8
Index Linked Bonds 26.7
UK T-Bills 12.0
Cash 10.2
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. 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. In line with the Fund’s prospectus, the Fund is authorised to invest in transferable securities and money market instruments issued or guaranteed by an EEA state, one or more local authorities, a third country, or a public international body to which one or more EEA states belong.  The Investment Manager would only consider investing more than 35% of the Fund’s assets in UK or US government issued transferable securities or approved money market instruments. 

 

How to Invest

You may invest directly, via a broker or adviser, or through a number of online fund platforms.

How to Invest