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Trojan Ethical Income Fund

The investment objective of Trojan Ethical Income Fund is to seek to provide income with the potential for capital growth in the medium term. Its investment policy is to invest substantially in UK and overseas equities. Trojan Ethical Income Fund may also invest in fixed interest securities, indices, deposits, collective investment schemes and money market instruments.

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 19/06/2019
Accumulation Shares
Income Shares
122.84p
Fund Size
£134M (31/05/19)

Past performance is not a guide to future performance.

May 2019

Your Fund returned +0.3% during the month compared to -3.0% for the FTSE All-Share Index (TR).

As US trade tensions continued to rise and negotiations with both Mexico and China failed to progress meaningfully, analysts have been forced to moderate their global growth expectations, with the World Bank cutting 2019 forecasts by 0.3% to 2.6%.  Consensus now expects the Federal Reserve to lower interest rates at least three times in coming quarters and this has driven the yield on both the UK and US 10 year governments bond materially lower.

While growth equities responded poorly to the weaker economic forecasts, defensive stocks experienced moves more closely correlated with the stronger government bond markets.  Assura PLC, amongst the top performing holdings in the portfolio over the month, formed a case in point.  The stock is a Real Estate Investment Trust specialising in the ownership and leasing of primary healthcare premises.

The company’s tenants are predominantly economically insensitive GP practices whose rental costs are funded, directly or indirectly, by the NHS, providing a pseudo government backing to Assura’s revenue streams.  The portfolio’s assets are all but fully let (98%) and benefit from long average unexpired lease terms (12 years).  Rents are subject to contractual uplifts, helping protect investors against the spectre of inflation.  Although a relatively lower risk asset base, management have resisted the temptation to add excessive debt and the loan-to-value ratio of the portfolio remains low at 34%.

A portion of the portfolio is allocated to assets with similar properties.  These include Primary Health Properties, Secure Income REIT and two infrastructure funds.  These often underappreciated contributors to the portfolio’s risk and income profile are likely to have an important role to play for the foreseeable future.

 

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 31 May 2019 06/01/16
Since Launch
31/05/2016
3 Years
31/05/18
1 Year
30/11/18
6 Months 
Trojan Ethical Income Fund O Acc +31.0% +27.5% +10.7% +7.8%
LIBID* GBP 1 Month +1.2% +1.0% +0.6% +0.3%
FTSE All-Share Index (TR) +33.7% +28.4% -3.2% +4.9%

*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% +13.4%

# From launch (06/01/16)

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

Top 10 Holdings Fund %
Unilever 5.2
Compass 4.1
Lloyds 3.8
Colgate-Palmolive 3.6
Procter & Gamble 3.4
GlaxoSmithKline 3.4
Nestlé 3.4
RELX 3.3
National Grid 3.2
Coca-cola 3.1
Total Top 10 36.5
33 Other Holdings 54.2
Cash & Equivalent 9.3
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.

How to Invest

You may invest directly, via a broker or adviser, or through a number of online fund platforms.

How to Invest