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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 policy is to invest globally in government and public securities (such as sovereign debt and treasury bills), corporate bonds, equities and equity-related securities, private equity, precious metals, cash, cash equivalents and deposits.  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 14/04/2021
Accumulation Shares
Income Shares
121.12p
Fund Size
£307m (31/03/21)

February 2021

Your Fund returned -1.9% during the month compared to +2.0% for the FTSE All-Share Index (TR).

Six months ago investors favoured the reliability of consistent profitability and growth, but, for now, markets continue to prefer the risk-on, ‘re-opening trade’.  Today, value-orientated stocks and cyclical companies are finding favour.  Over the longer term, these sectors have tended not to generate attractive returns for shareholders; they are often structurally challenged and were among the most severely hit in the market falls of a year ago.  Such sectors include energy, cruise lines and cinemas.  A number of cyclical companies have larger enterprise values today (once debt and new equity are added) than prevailed prior to the pandemic.  We carefully select our equities to generate returns consistently over the cycle and they tend to lag during periods of recovery and reflation.

Sentiment seems to have travelled from one side of the boat to the other.  We have experienced this before in 2003, 2009 and 2013.  In such periods of market rotation the conservative, well-financed and defensive are replaced for the cyclical and geared.  But excellent businesses do not die and such moments of unpopularity can provide excellent opportunities.  Some of our best long-term investments have been made at such times.

During February, bond yields moved higher as investors anticipated the reopening of the economy in the second half of the year.  We have been aware of the asymmetric risk in the bond market and have preferred to eschew conventional bonds for Index-Linked, which have benefited from rising inflation expectations. We have also kept our duration*of linkers relatively short at 4-5 years.  Despite yields surging, our long-term view remains that interest rates can only rise so far and that monetary and fiscal stimulus will remain accommodative as we exit this crisis with multi-decade high government and corporate debt levels.  Index-linked and gold will have a key role to play as negative real yields prevail.

If there is a lesson from 2020, we prefer to look somewhat dull, as opposed to the excitement of high volatility in both directions.

*Duration is a measure of sensitivity of a bond’s price to changes in interest rates

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
31/03/2020
1 Year
30/09/2020
6 Months
Trojan Ethical O Acc +18.1% +10.1% -0.1%
UK Retail Price Index +3.9% +1.2% +0.6%
FTSE All-Share TR +4.3% +26.7% +18.5%
Bank of England Base Rate +0.8% +0.1% 0.0%
Discrete Calendar Annual Returns (%) 2019 2020 2021
Trojan Ethical O Acc +7.2% +10.9% -0.6%

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 March 2021.

Risk Analysis Since Launch (31/05/2001) Trojan Ethical O Acc FTSE All-Share TR
Total Return +18.1% +4.3%
Max Drawdown -8.9% -35.3%
Best Month +4.6% +12.7%
Worst Month -2.0% -15.1%
Positive Months +66.7% +58.3%
Annualised Volatility +5.5% +18.6%

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 the annualised standard deviation of the monthly returns 

Source: Lipper, Link Fund Solutions Limited.  

Top 10 holdings (excluding government bonds) Fund %
Invesco Physical Gold 7.6
Microsoft 5.5
Alphabet 4.5
Visa 4.5
Medtronic 4.2
Unilever 3.8
WisdomTree Physical Gold 3.4
American Express 3.3
Nestlé 3.1
Becton Dickinson 2.4
Total Top 10 42.3
8 Other Equity holdings 11.4
Index Linked Bonds 32.5
UK T-Bills 10.9
Cash 2.9
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