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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.

  May 2019

During the month, we saw the management of Medtronic, one of the top-5 holdings in the Trojan Ethical Fund.  Medtronic is a global leader in the manufacturing of a number of medical devices including coronary stents, heart valves, and drug delivery and monitoring equipment. Inventor of the world’s first pace maker in the 1950s, Medtronic is at the forefront of developing innovative technology to treat disease.  Demand for these medical interventions has grown consistently as populations in developed countries get older and emerging markets modernise their healthcare provision. 

The stock, which we have followed closely since 2011, has not partaken in the re-rating enjoyed by most high-quality businesses over the past five years.  This is due to a number of factors, including management’s guidance to investors which has often been too optimistic or insufficiently clear.  We saw the company’s CEO, Omar Ishrak, present in New York in May and it is evident that management has learnt from past mistakes. 

Moreover, we believe that the business today is in very good shape.  The company’s pipeline of products is strong and the long-term technology focus of engineers ensures this.  Sales from robotics and data analytics are just beginning to be realised; Medtronic’s entrenched positioning in the operating room should enable it to capitalise on these secular growth opportunities. 

We look for businesses which empower their people to drive sector-leading innovation.  When an employee joins Medtronic, they receive a ‘mission medallion’ with the company’s mission statement which reads as follows:

Contributing to human welfare by the application of biomedical engineering to alleviate pain, restore health, and extend life.

We will continue to monitor the company closely in its fulfilment of these objectives.

We increased the Fund’s exposure to the shares in April at a price to earnings multiple of around 16x forward earnings.  This is fair value for a company which can continue to defensively compound earnings at attractive rates of growth.


Top 10 Holdings Fund %
Microsoft 5.1
Unilever 4.7
Coca-Cola 3.7
Berkshire Hathaway 3.2
Medtronic 3.2
Nestlé 2.6
Procter & Gamble 2.5
Sage 2.2
Visa 2.1
Colgate-Palmolive 2.0
Total Top 10 31.3
15 Other Holdings 44.0
Gold Related Investments 8.9
UK T-Bill 13.2
Cash 2.6
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. 



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