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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 21/01/2021
Accumulation Shares
Income Shares
119.75p
Fund Size
£271m (31/12/20)

Past performance is not a guide to future performance.

December 2020

Your Fund delivered a total return of +1.3% during the month compared to +3.9% the return of the FTSE-All-Share Index (TR).

Investor sentiment continued to recover in the month, helped by news of further regulatory approvals for COVID-19 vaccines and the long-awaited signing of a trade deal between Britain and the EU.

For the calendar year 2020, the UK market fell by -9.8% (TR). Your Fund performed better, falling only -6.0%, but just as importantly, took a much less volatile path through the year. Having protected capital considerably better during the market sell-off in the first quarter, the Fund also had a less dramatic recovery. In recent months, cyclical (and in many cases less sustainable) stocks have led the market higher, whilst more defensive and higher quality assets have been left behind. As always in such periods, we look for opportunities to add to out-of-favour holdings where the underlying operational momentum is strong.

The year as a whole has been a productive period with changes made to the portfolio that we believe will underpin future resilience and returns for investors. We disposed of companies that no longer fit our investment criteria whilst further aligning the Fund to those high-quality companies in which we are confident of  income and capital growth. Sales included Lloyds Banking Group, Wells Fargo, AB Foods, Land Securities and Coca-Cola, with ESG concerns playing an important part in the sale of the latter in particular. New holdings include Croda, Intertek, Paychex and the Fund’s most recent addition, InterContinental Hotels Group.

Looking beyond 2020, and with the threat of a disorderly exit from the EU behind us, we would expect the relative value of UK assets to be better supported than in recent years, not least by foreign buyers/investors. The UK is home to many excellent companies, particularly those with international earnings, enviable economics and healthy dividend growth prospects. It is to such companies that your Fund is overwhelmingly exposed.

Source: Lipper, Link Fund Solutions Limited

Total Return 06/01/2016
Since Launch
31/12/2017
3 Years
31/12/2019
1 Year
30/06/2020
6 Months
Trojan Ethical Income O Acc +34.7% +13.1% -6.0% +3.1%
FTSE All-Share TR +31.8% -2.7% -9.8% +9.3%
Discrete Calendar Annual Returns (%) 2016 2019 2020 2020
Trojan Ethical Income O Acc +8.0% +23.9% -6.0% 0.0%

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 31 December 2020.

Risk Analysis Since Launch (06/01/2016) Trojan Ethical Income O Acc FTSE All-Share TR
Total Return +34.7% +31.8%
Max Drawdown -25.4% -35.3%
Best Month +6.5% +12.7%
Worst Month -9.1% -15.1%
Positive Months +62.7% +61.0%
Annualised Volatility +10.0% +13.7%

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 %
Unilever 5.4
RELX 5.1
Reckitt Benckiser 4.2
Experian 3.7
Nestlé 3.4
Compass Group 3.2
Paychex 3.1
Aveva Group 3.1
Intertek Group 2.6
Victrex 2.5
Total Top 10 36.3
36 other holdings 60.2
Cash & equivalent 3.5
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