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 02/12/2021
Accumulation Shares
Income Shares
123.06p
Fund Size
£316m (31/10/21)

Past performance is not a guide to future performance.

October 2021

Your Fund delivered a total return of +0.9% during the month compared to +1.8% the return of the FTSE-All-Share Index (TR).

Troy has always gravitated towards companies that we think can perform well in ‘all weathers’, and this includes through periods of heightened inflation. It is fair to say that the market has recently appeared sceptical that some of our consumer goods companies can do this. Helpfully, over the past few weeks we have had updates from P&G, Unilever, Reckitt and Nestlé, and also from many of their peers. We offer three takeaways from these latest data points.

1) Not all consumer staples businesses are created equal. Whilst commoditised categories have been challenged, premium products are faring much better, benefitting from higher gross margins to absorb cost increases as well as superior volume growth in many cases. Nestlé’s coffee and pet care businesses are good examples. Nestlé trades at close to an all-time-high share price, as does Procter & Gamble.

 

2) Years such as these are testing for consumer goods businesses. With ‘cost of goods sold’ inflation running at perhaps +10% to +15% on average, these really are extreme times. Whilst demand for Unilever’s and Reckitt’s products is stable, even in recessions, managing price in response to input cost inflation is always difficult, and only comes through with a time lag.

3) These companies have been here before.  Whilst not finding it easy, they are managing their way through the current backdrop and are leaning on decades or even centuries of experience of doing so. We are not complacent, but we think the investment cases for these companies are far from broken and are reassured by how they are collectively faring.

Outside of consumer staples, we are seeing plenty of positive progress; other large holdings such as RELX, Paychex, Experian and Croda are currently very well placed to weather these unusual times. Resilience and appropriate diversity of company and industry exposures remain core to our process.

 

Source: Lipper, Link Fund Solutions Limited

Total Return 06/01/2016
Since Launch
31/10/2016
5 Years
31/10/2018
3 Years
31/10/2020
1 Year
30/04/2021
6 Months
Trojan Ethical Income O Acc +43.9% +34.2% +21.3% +15.3% +2.9%
FTSE All-Share TR +52.4% +31.4% +17.6% +35.4% +5.4%
Discrete Calendar Annual Returns (%) 2016 2017 2018 2019 2020 2021
Trojan Ethical Income O Acc +8.0% +10.2% -2.9% +23.9% -6.0% +6.9%

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 31 October  2021.

Risk Analysis Since Launch (06/01/2016) Trojan Ethical Income O Acc FTSE All-Share TR
Total Return +43.9% +52.4%
Max Drawdown -25.4% -35.3%
Best Month +6.5% +12.7%
Worst Month -9.1% -15.1%
Positive Months +63.8% +63.8%
Annualised Volatility +9.6% +12.9%

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 6.0
Experian 5.2
Unilever 4.7
Reckitt Benckiser 4.7
Paychex 3.8
Nestlé 3.5
American Express 3.2
AstraZeneca 2.9
Aveva 2.5
Compass Group 2.5
Total Top 10 38.9
37 other holdings 58.2
Cash & equivalent 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.

How to Invest

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

How to Invest