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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 22/10/2020
Accumulation Shares
Income Shares
Fund Size
£266m (30/09/20)

Past performance is not a guide to future performance.

August 2020

Your Fund delivered a total return of +2.2% during the month compared to +2.4% the return of the FTSE-All-Share Index (TR).

We have always aimed to deliver an attractive total return with below average volatility, and construct your Fund accordingly. Fast-moving consumer goods companies (FMCG), especially in the areas of food, household and personal goods, have been longstanding core holdings in the portfolio, and have consistently contributed to these dual aims. Your Fund has significant holdings in Nestlé, Unilever, Reckitt Benckiser (RB), Colgate and Procter & Gamble (P&G), all of which have been amongst the strongest contributors to returns in this volatile year. Selling affordable, every-day, repeat-purchase items, under hundreds of renowned brands across many countries, creates resilient revenues that we find tend to result in relatively predictable generation of shareholder value.

Of course not all brands will perform well every year. Consumer preferences change, and FMCG companies must be mindful of maintaining agility in their capital allocation. Acquiring new brands can be beneficial as can disposing of laggards. As examples, P&G has benefited since selling non-core beauty brands to Coty in 2015 and Unilever from disposing of their Spreads business to private equity in 2018. Investors should not be surprised if this continues; Nestlé has an ongoing review of their North American ‘Waters’ business and Unilever is again looking to simplify their corporate structure whilst their Tea business is under strategic review.

An interesting consequence of COVID-19 is the renewed relevance of certain household brands, in particular those relating to hygiene and cleanliness. In the last quarter, P&G saw their Fabric and Homecare division grow organically 14%. Similarly, RB’s Hygiene division grew 19% like-for-like. When led by previous CEO Rakesh Kapoor, it was frequently mooted that RB might dispose of some such brands or even the entire Hygiene business. Laxman Narasimhan, the relatively new chief executive, has given no such indication to date. Clearly such fast growth is not sustainable, but time will tell if brands such as Dettol and Lysol maintain increased relevance in a COVID-19 world. RB’s recent partnering with hotel group Hilton as part of the latter’s ‘CleanStay’ programme may be one indication that we are entering an era of higher demand for those powerful consumer brands associated with health and hygiene.   

Whilst not all FMCG companies have performed so well during the global pandemic, we continue to see the Fund’s FMCG exposure as collectively being able to deliver resilient, growing cash flow and dividends long into the future, much as it has done in the past.


Source: Lipper, Link Fund Solutions Limited

Total Return 06/01/2016
Since Launch
3 Years
1 Year
6 Months
Trojan Ethical Income O Acc +32.5% +13.6% -5.2% +9.9%
FTSE All-Share TR +17.1% -9.3% -16.6% +7.0%
Discrete Calendar Annual Returns (%) 2016 2018 2019 2020
Trojan Ethical Income O Acc +8.0% -2.9% +23.9% -7.4%

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 September 2020.

Risk Analysis Since Launch (06/01/2016) Trojan Ethical Income O Acc FTSE All-Share TR
Total Return +32.5% +17.1%
Max Drawdown -25.4% -35.3%
Best Month +5.7% +6.4%
Worst Month -9.1% -15.1%
Positive Months +62.5% +60.7%
Annualised Volatility +9.4% +12.6%

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 6.0
RELX 5.0
Reckitt Benckiser 4.0
Experian 3.9
Nestlé 3.7
Colgate-Palmolive 3.6
AstraZeneca 2.9
Intertek Group 2.9
Paychex 2.9
Compass Group 2.6
Total Top 10 37.5
35 other holdings 56.4
Cash & Equivalent 6.1
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