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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 24/06/2021
Accumulation Shares
Income Shares
123.60p 		Fund Size
£302m

Past performance is not a guide to future performance.

May 2021

Your Fund delivered a total return of +0.2% during the month compared to +1.1% the return of the FTSE-All-Share Index (TR).

High quality UK-listed income companies such as Croda, Experian, Reckitt Benckiser and InterContinental Hotels Group make up the core of your portfolio. However, the mandate’s flexibility means we are able to make select overseas investments where our global research process identifies exceptional investment opportunities in other equity markets. At the month end, non-UK stocks accounted for c. 23% of portfolio assets. Such investments are made not as a reflection of any geographic asset allocation process but rather on a stock–by-stock basis in order to add diversification to the portfolio, to access business models not represented in the UK market or simply when we find great opportunities.

CME, or the Chicago Mercantile Exchange as it was originally, is one such example. CME owns and operates the leading futures exchange in the world, with a dominant position in exchange-traded interest rate, FX, energy, and metal derivative contracts. Improving economic activity, the potential for increased interest rate volatility, and a structural trend towards exchange-traded derivative contracts all support trading volume.

With very high margins on incremental revenues, increasing volumes is the key driver of profit growth for CME. Further opportunities for growth stem from the 2018 acquisition of NEX Group, and their investment in the attractive S&P Index business.

Importantly, the company’s enviable scale (it owns the world’s five most liquid futures contracts) and capital-light business model mean CME requires minimal additional capital to sustain its growth, giving rise to an abundance of genuinely excess cash flow. This tends to be returned to investors in the form of a growing and sustainable ordinary dividend, augmented by regular special dividends.

As well as being a worthy income growth stock, CME’s volumes have historically been positively corelated with interest rate and equity market volatility. This means an investment in CME brings differentiation and diversification to the portfolio, further justifying its place amongst our select group of overseas holdings.

Source: Lipper, Link Fund Solutions Limited

Total Return 06/01/2016
Since Launch		 31/05/2016
5 Years		 31/05/2018
3 Years		 31/05/2020
1 Year		 30/11/2020
6 Months
Trojan Ethical Income O Acc +40.2% +36.4% +18.4% +7.3% +5.4%
FTSE All-Share TR +46.2% +40.5% +5.9% +23.1% +15.2%
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% +4.1%

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 2021.

Risk Analysis Since Launch (06/01/2016) Trojan Ethical Income O Acc FTSE All-Share TR
Total Return +40.2% +46.2%
Max Drawdown -25.4% -35.3%
Best Month +6.5% +12.7%
Worst Month -9.1% -15.1%
Positive Months +62.5% +62.5%
Annualised Volatility +9.8% +13.4%

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 5.2
RELX 5.0
Reckitt Benckiser 4.8
Experian 4.3
Nestlé 3.3
Compass Group 3.2
Paychex 3.1
American Express 3.0
Aveva 2.8
AstraZeneca 2.6
Total Top 10 37.3
37 other holdings 59.4
Cash & equivalent 3.3
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)

Related Literature

Copyright © Troy Asset Management Limited 2021 | Authorised and regulated by the Financial Conduct Authority (FRN: 195764). Past performance is not necessarily a guide to future performance.
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