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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 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 14/02/2020
Accumulation Shares
Income Shares
129.59p
Fund Size
£189M (31/12/19)

Past performance is not a guide to future performance.

December 2019

Your Fund returned +1.3% during the month compared to +3.3% for the FTSE All-Share Index (TR).

December was a notable month in UK politics, with the third general election in 5 years resulting in a landslide Conservative majority of 80 parliamentary seats, the largest since 1987. Short term, this provides an incrementally better backdrop for investment in the UK, and equity and currency markets have understandably reflected this view in subsequent movements. A better backdrop notwithstanding, 2020 may well see further volatility in UK assets, particularly if the government remain insistent that any transition arrangement with the EU will cease at the end of the year, creating a tighter timetable for trade negotiation.  

Looking back at 2019, it was a pleasing year for the Trojan Ethical Income Fund, which posted a total return of +23.9% - ahead of the +19.2% of the FTSE All-Share Index (TR) in what was an exceptionally strong year for the market.

This can be put down to stock-specific gains within the Fund, such as in the case of WH Smith and Experian, but also due to the fact that market performance was broad-based and not simply led by cyclical companies, which we consistently seek to avoid. To have achieved this in 2019, having protected capital better than the market in 2018, is a satisfactory outcome.

Turning to 2020 and beyond, we continue to invest selectively in competitively advantaged, resilient, growing companies that can compound free cash flow, and thus dividends per share, well into the future. Some of these quality businesses will inevitably not have the very highest of dividend yields today, but will deliver the compounding value and dividend growth we seek for the long term.

 

 

Source: Lipper, Link Fund Solutions Limited

Total Return 06/01/2016
Since Launch
31/01/2017
3 Years
31/01/2019
1 Year
31/07/2019
6 Months
Trojan Ethical Income O Acc +43.4% +34.8% +20.6% +3.6%
FTSE All-Share TR +41.4% +18.4% +10.7% +0.1%
Discrete Calendar Annual Returns (%) 2016 2018 2019 2020
Trojan Ethical Income O Acc +8.0% -2.9% +23.9% +0.1%

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 31 December 2019.

Risk Analysis Since Launch (06/01/2016) Trojan Ethical Income O Acc FTSE All-Share TR
Total Return +43.4% +41.4%
Max Drawdown -8.2% -15.0%
Best Month +4.8% +6.4%
Worst Month -4.9% -5.2%
Positive Months +64.6% +62.5%
Annualised Volatility +7.3% +9.3%

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
Compass 4.2
Lloyds 4.1
GlaxoSmithKline 3.7
Colgate-Palmolive 3.7
National Grid 3.4
RELX 3.2
Procter & Gamble 3.1
AstraZeneca 2.9
Victrex 2.9
Total Top 10 36.4
33 other holdings 56.3
Cash & Equivalent 7.3
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