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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 investment 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 14/10/2019
Accumulation Shares
Income Shares
Fund Size
£79M (31/08/19)

August 2019

August has seen bond yields fall precipitously.  Towards the end of May, we sold some of the Fund’s holdings in short-dated UK index-linked gilts, trading on negative real yields, and reinvested the proceeds into 20-year US TIPS (Treasury Inflation Protected Securities).  The real yield on these bonds has since more than halved, leading to a c. 15% price appreciation. 

This is a microcosm of the wider bond market.  In the US, the 30-year conventional bond fell below 2% for the first time.  Elsewhere in the world investors are actually paying to lend.  At the end of August the amount of negative-yielding debt (both sovereign and corporate) reached $17trn globally.


Lower yields indicate a number of things.  They are first an output, reflecting the bond market’s expectations for future interest rates, based on estimations of economic growth.  By this measure the outlook has deteriorated significantly. 

They are also an input.  Financial institutions with long-dated liabilities, measure the present value of these liabilities with reference to long-term rates.  A lower discount rate means a larger liability.  As a result, institutions from pension funds to life insurance companies are faced with deteriorating balance sheets and a consequent need to maximise returns to fund these deficits.  This is leading to higher risk taking at a time when assets are expensive.

The Fund’s cautious stance reflects growing risks to valuations and cash flows.


Top 10 Holdings Fund %
ETFS Physical Gold 9.6
Microsoft 4.8
Medtronic 3.6
Unilever 3.5
Nestlé 3.0
Coca-Cola 2.8
Alphabet 2.7
Visa 2.5
Berkshire Hathaway 1.9
American Express 1.9
Total Top 10 36.3
18 Other Holdings 45.2
UK T-Bill 11.6
Cash 6.9
Total  100.0

Asset allocation and holdings subject to change.


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. 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