Trojan Ethical Income Fund

The investment objective of Trojan Ethical Income Fund is to seek to provide income with the potential for capital growth in the medium term. Its investment policy is to invest substantially in UK and overseas equities. Trojan Ethical Income Fund may also invest in fixed interest securities, indices, deposits, collective investment schemes and money market instruments.

The fund will invest in accordance with the parameters of its ethical investment 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 investment 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 13/12/2018
Accumulation Shares
Income Shares
110.58p
Fund Size
£88M (31/10/18)

October 2018

Your Fund returned -2.8% during the month compared to -5.2% for the FTSE All-Share Index (TR).

This was a torrid month for equities worldwide – in fact the worst one-month decline since May 2012. As is often the case in such market setbacks, more volatile small and mid-cap stocks led the market fall whereas more defensive companies held up well. This played to your Fund’s strengths. Concerns that rising US interest rates might choke off economic growth were the main factor which precipitated the market weakness. Disappointing results from both Amazon and Alphabet further exacerbated the declines and a number of companies pointed towards a more challenging 2019.

In the UK the Budget was held in October. The OBR 2018 GDP growth forecasts were downgraded slightly to 1.3% but future year forecasts were upgraded, allowing the Chancellor the flexibility to flag the ending of austerity. However, the Brexit process continues to dominate Parliament and the risk of a ‘No Deal’ outcome is becoming a greater probability. This would undoubtedly increase both market and currency volatility. Within the portfolio the most resilient performers like National Grid and AstraZeneca held up particularly well while the worst offenders were Royal Mail, Equiniti and Schroders. Despite political and economic uncertainty the Fund yield of 3.2% continues to provide support.

Source: Lipper, Link Fund Solutions Limited

This chart shows performance of the Trojan Ethical Income Fund O Acc share class from launch

Total Return to 31 October 2018 06/01/16
Since Launch
31/10/17
1 Year
30/04/18
6 Months 
Trojan Ethical Income Fund O Acc +18.6% +1.1% +2.2%
LIBID* GBP 1 Month +0.8% +0.4% +0.3%
FTSE All-Share Index (TR) +29.6% -1.5% -3.5%

*London Inter Bank Bid Rate

Discrete Calendar Annual Returns (%) 2016# 2017 2018
YTD
Trojan Ethical Income Fund O Acc +8.0 +10.2 -0.3

# From launch (06/01/16)

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

Top 10 Holdings Fund %
Unilever 5.4
GlaxoSmithKline 4.2
Reckitt Benckiser 4.1
Nestlé 3.9
Lloyds 3.9
Coca-Cola 3.6
Procter & Gamble 3.5
National Grid 3.3
Compass 3.3
 RELX 3.2
Total Top 10 38.4
33 Other Holdings 52.5
Cash & Equivalent 3.1
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. 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