Trojan Ethical Income Fund

The investment objective of the Trojan Ethical Income Fund is to seek to achieve income with the potential for capital growth in the medium term (3 to 5 years).

Its investment policy is to invest at least 80% of its assets in UK and overseas equities, including investment trusts and real estate investment trusts and equity-related securities. At least 60% of its assets will be invested in UK equities and equity-related securities. A maximum of 30% of its assets may also be invested in overseas equities and equity-related securities.

The fund will invest in accordance with the parameters of its ethical exclusion criteria, which consider ethical issues in relation to: fossil fuels, pornography, tobacco and certain types of armaments. 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, I & S Classes are also available. Please contact us for more information.

'O' Share Class Price 20/05/2022
Accumulation Shares
Income Shares
114.94p
Fund Size
£368m (30/04/22)

Past performance is not a guide to future performance.

April 2022

Your Fund delivered a total return of +0.3% during the month compared to +0.3% the return of the FTSE-All-Share Index (TR).

Amidst these times of macroeconomic uncertainty, we remain focused on analysing individual companies. One sector in which we continue to find good opportunities is ‘value-added distribution’. The UK market is home to many high-quality distributors which possess the characteristics we like. These include having a diversified supplier and customer base, selling essential products that are a small proportion of a customer’s overall costs, fragmented competition, and a value-added service proposition that deepens competitive advantage. Earlier this year, we initiated a holding in Bunzl, an international distributor of everyday consumables to a diverse set of industries and geographies. Bunzl’s products are ‘not for resale’ items that are vital to their customers’ operations. These include food and retail packaging to the foodservice industry and grocery chains; safety and protective equipment to healthcare operators; and a wide range of cleaning supplies and products.

Bunzl is the dominant global player in its niche, enabling the company to derive material cost advantages over its competitors. The company act as their ‘customers’ warehouse’, freeing up working capital and overheads by providing a customised, one-stop-shop solution with daily delivery.

We have followed and admired Bunzl for some time, taking every chance to understand the company better. One concern we had was around the sustainability of packaging materials. At its most recent investor day, the company addressed these concerns head-on, highlighting the limited exposure to environmentally unfriendly packaging materials and the steps being taken to transition away from them. Importantly, Bunzl’s unique scale and expertise allow them to engage with both suppliers and customers to drive positive change.

Bunzl has the defensive economics and long runway for growth that we seek in new ideas for the Fund. With a dividend yield over 2% well covered by an earnings yield of over 5%, we believe investors can expect good returns from this investment over the long term.

 

Source: Lipper, Link Fund Solutions Limited

Total Return 06/01/2016
Since Launch
30/04/2017
5 Years
30/04/2019
3 Years
30/04/2021
1 Year
31/10/2021
6 Months
Trojan Ethical Income O Acc +43.6% +27.2% +9.9% +2.6% -0.3%
FTSE All-Share TR +57.2% +26.6% +14.1% +8.7% +3.1%
Discrete Calendar Annual Returns (%) 2016 2017 2018 2019 2020 2021 2022
Trojan Ethical Income O Acc +8.0% +10.2% -2.9% +23.9% -6.0% +12.1% -4.9%

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

Source: Lipper, Link Fund Solutions Limited. Since Launch (06/01/2016) to 30 April 2022.

Risk Analysis Since Launch (06/01/2016) Trojan Ethical Income O Acc FTSE All-Share TR
Total Return +43.6% +57.2%
Max Drawdown -25.4% -35.3%
Best Month +6.5% +12.7%
Worst Month -9.1% -15.1%
Positive Months +64.0% +62.7%
Annualised Volatility +9.8% +12.6%

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 Fund %
RELX 6.4
Reckitt Benckiser 5.0
Unilever 4.6
Experian 4.5
Nestlé 4.2
Procter & Gamble 3.7
Paychex 3.2
Compass Group 3.1
American Express 2.8
National Grid 2.8
Total Top 10 40.3
32 other holdings 55.5
Cash & equivalent 4.2
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.

How to Invest

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

How to Invest