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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 16/08/2019
Accumulation Shares
Income Shares
121.12p
Fund Size
£149M (31/07/19)

Past performance is not a guide to future performance.

July 2019

Your Fund returned +2.6% during the month compared to +2.0% for the FTSE All-Share Index (TR).

Investors could be forgiven for being enticed by a FTSE All-Share dividend yield of over 4% with ten year gilt yields at 0.5% and cash yielding close to zero. However, the headline UK equity market yield disguises an unusually polarised index. Companies with attractive dividend growth profiles and robust cover have seen their share prices rise, consequently shrinking their yields. Meanwhile, many mature companies with leaner growth prospects and stretched payout ratios have seen their yields rise to what we believe in many cases are unsustainable levels. It is this latter group that has skewed the overall yield on the market and which now act as a considerable drag on the rate of future UK equity income growth.

Our commitment to investors has been to provide a balance between income and capital growth.

In our view, to grow the Fund’s dividend in current market conditions represents too great a risk to capital. For some time we have been lowering the Fund’s exposure to higher yielding stocks in the portfolio and adding names with better dividend growth potential.  The recent period of strong performance has helped us to implement these changes to the portfolio. 

As a result the interim dividend for the six months to the end of July will be unchanged at 1.78p.  As always, we will monitor the Fund’s income stream carefully through the second half of the year.

It is by holding a portfolio of companies that produce growing and sustainable dividends that we can continue to deliver our long-term ambition. This is to preserve the real value of our investors’ capital, and to provide a return that can compound over time.

 

 

Source: Lipper, Link Fund Solutions Limited

This chart shows performance of the Trojan Ethical Income Fund O Acc share class from launch

Total Return to 30 June 2019 06/01/16
Since Launch
30/06/2016
3 Years
30/06/18
1 Year
31/12/18
6 Months 
Trojan Ethical Income Fund O Acc +35.0% +31.3% +13.3% +16.8%
LIBID* GBP 1 Month +1.3% +1.1% +0.6% +0.3%
FTSE All-Share Index (TR) +38.6% +29.5% +0.6% +13.0%

*London Inter Bank Bid Rate

Discrete Calendar Annual Returns (%) 2016# 2017 2018 2019
YTD
Trojan Ethical Income Fund O Acc +8.0% +10.2% -2.9% +16.8%

# From launch (06/01/16)

Performance is calculated on a total return basis, net of fees, in sterling terms.

Top 10 Holdings Fund %
Unilever 4.8
Compass 4.3
Procter & Gamble 3.7
Colgate-Palmolive 3.5
GlaxoSmithKline 3.4
Nestlé 3.4
AstraZeneca 3.3
Lloyds 3.3
National Grid 3.2
RELX 3.2
Total Top 10 36.1
33 Other Holdings 53.4
Cash & Equivalent 10.5
Total  100.0

Asset allocation and holdings subject to change.

 

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.

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