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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 04/06/2020
Accumulation Shares
Income Shares
117.51p 		Fund Size
£203M (30/04/20)

Past performance is not a guide to future performance.

April 2020

Your Fund returned +5.7% during the month compared to +4.9% for the FTSE All-Share Index (TR).

Amid the uncertainties created by COVID-19, two themes stand out to us. Firstly, the digitalisation trend is broadening and accelerating. Companies that can embrace the digital shift and still earn attractive economics are likely to see their competitive positions enhanced by current conditions. Meanwhile, those companies whose products and services actually enable this shift are likely to become even more valuable assets.

Considering this trend in the context of the Fund’s holdings, we note from recent results that AJ Bell and IntegraFin welcomed record customer numbers to their online savings platforms as finance continues the march to online. Digitisation is an unmistakeable force that is impacting all sectors of your Fund’s portfolio, whether that be retail, healthcare, or property. History would strongly suggest society does not return to previous analogue habits, and we invest accordingly.

The second theme relates to UK dividends. So far this year, 40 FTSE 100 companies have taken action to reduce their dividend in some form. In certain cases, dividends will be reinstated at prior levels, but for many of these companies, and thus the market as a whole, the days of making unaffordable dividend payments are over. Whilst this is painful to income accounts in the short term, we believe that dividends should be conservatively paid out of growing cash flow after prudent reinvestment for growth and full servicing of financial obligations. With that in mind, we expect a substantially lower level of market dividend payments to emerge from this period of dislocation. We also maintain a realistic hope that tempered dividend pay-out ratios should lead to improved future free cash flow and income growth.

So far this year, your Fund has been better insulated from the capital and income erosion endured by the UK market, and we continue to use short-term volatility to upgrade the portfolio’s aggregate return on capital and free cash flow growth profile. Such moves will have a dampening effect on this year’s dividend versus recent history, but we believe they place the Fund in a better position to compound capital and income growth into the future.

 

Source: Lipper, Link Fund Solutions Limited

Total Return 06/01/2016
Since Launch		 31/05/2017
3 Years		 31/05/2019
1 Year		 30/11/2019
6 Months
Trojan Ethical Income O Acc +30.7% +11.5% -0.3% -7.6%
FTSE All-Share TR +18.8% -8.4% -11.2% -16.1%
Discrete Calendar Annual Returns (%) 2016 2018 2019 2020
Trojan Ethical Income O Acc +8.0% -2.9% +23.9% -8.7%

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 2020.

Risk Analysis Since Launch (06/01/2016) Trojan Ethical Income O Acc FTSE All-Share TR
Total Return +30.7% +18.8%
Max Drawdown -25.4% -35.3%
Best Month +5.7% +6.4%
Worst Month -9.1% -15.1%
Positive Months +63.5% +61.5%
Annualised Volatility +9.7% +12.8%

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 standard deviation of annual returns. 

Source: Lipper, Link Fund Solutions Limited.  

Top 10 holdings Fund %
Unilever 5.2
RELX 4.9
Reckitt Benckiser 4.1
Colgate-Palmolive 3.8
Experian 3.7
National Grid 3.5
Nestlé 3.5
GlaxoSmithKline 3.0
AstraZeneca 2.8
Paychex 2.8
Total Top 10 37.4
35 other holdings 55.0
Cash & Equivalent 7.6
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

Key Facts

  • Fund Manager
    Hugo Ure
  • Inception Date
    06/01/2016
  • Currency
    £ Sterling
  • Benchmarks
    For more information on the benchmarks used please refer to the ‘use of benchmarks’ section in the fund information sheet
  • Available Share Class
    O, I, S
  • ISIN (O Class)
    GB00BYMLFK38 (Acc)
    GB00BYMLFL45 (Inc)
  • Bloomberg (O Class)
    TEIFOAC_LN (Acc)
    TEIFOIN_LN (Inc)
  • Sedol (O Class)
    BYMLFK3 (Acc)
    BYMLFL4 (Inc)

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