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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 14/04/2021
Accumulation Shares
Income Shares
Fund Size
£290m (31/03/21)

Past performance is not a guide to future performance.

February 2021

Your Fund delivered a total return of -2.1% during the month compared to -0.8% the return of the FTSE-All-Share Index (TR).

The market rotation that emerged in November following the announcement of the first successful vaccine trials was once again starkly apparent in February. Commodity stocks, banks and those set to benefit from the reopening of the economy continued to lead the market higher.

In response to higher levels of anticipated economic activity and a commitment by governments to deliver huge stimulus packages, inflation expectations increased. This was reflected in the yield on the US 10-year government bond which rose sharply to the 1.5% level. A move of this magnitude last occurred in late 2016 when the election of Donald Trump precipitated a similar ‘risk on’ rally. As in late 2016, profitable, well-financed, and sustainable companies experienced selling pressure as investors’ heads were turned by more exciting short-term opportunities. Although the portfolio does contain recovery stocks like WH Smith and Compass, which generated total returns for the month of +25% and +11% respectively, core holdings such as Experian, Unilever, RELX and Nestlé were significant detractors from the portfolio’s performance.

Importantly the share price declines experienced by these stocks during the month reflect a de-rating of the shares rather than a rebasing of earnings expectations. All four companies can be expected to continue to deliver earnings and dividend growth over the coming years and all delivered robust performances through the pandemic. As such, we believe these stocks now offer more attractive future returns than they have at any time over the last six months. Exuberance need not fall much before higher quality companies regain favour with investors.

Following the Fund’s January year end, a dividend of 1.2967p was announced for the ‘O’ Income shares. The move to retain cash during the pandemic meant ordinary dividend distributions from UK companies fell -38% in 2020. Against this backdrop your Fund’s final dividend declined -22% when compared to the prior year; less than the decline inferred by the level of the interim dividend. Importantly, the pandemic also provided an opportunity to add a number of exciting new dividend growth stocks to the portfolio, including Medtronic, Intertek and Hargreaves Lansdown. We expect such additions to help underpin the Fund’s prospective dividend growth from this rebased level.

Source: Lipper, Link Fund Solutions Limited

Total Return 06/01/2016
Since Launch
5 Years
3 Years
1 Year
6 Months
Trojan Ethical Income O Acc +34.8% +34.1% +20.4% +11.8% +1.7%
FTSE All-Share TR +38.7% +35.7% +9.9% +26.7% +18.5%
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% +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 March 2021.

Risk Analysis Since Launch (06/01/2016) Trojan Ethical Income O Acc FTSE All-Share TR
Total Return +34.8% +38.7%
Max Drawdown -25.4% -35.3%
Best Month +6.5% +12.7%
Worst Month -9.1% -15.1%
Positive Months +61.3% +61.3%
Annualised Volatility +9.9% +13.5%

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 5.1
Reckitt Benckiser 5.1
Experian 4.1
Compass Group 3.4
Paychex 3.2
Nestlé 3.2
Aveva Group 2.8
American Express 2.8
Intertek Group 2.5
Total Top 10 37.3
38 other holdings 59.5
Cash & equivalent 3.2
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