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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 18/09/2019
Accumulation Shares
Income Shares
123.77p
Fund Size
£145M (31/08/19)

Past performance is not a guide to future performance.

August 2019

Your Fund returned -0.1% during the month compared to -3.6% for the FTSE All-Share Index (TR).

Over the last month the financial press has become increasingly preoccupied with the ‘inversion of the yield curve’.  In normal circumstances investors rationally expect to receive a higher rate of interest in return for lending money for a longer period of time.  At the moment however, investors lending to both the UK and US governments for ten years receive a lower annualised return than those lending for 3 months.  This is the result of an expectation that interest rate cuts will be the inevitable central bank response to slowing economic growth. Inverted yield curves have often presaged recession and as such equity markets have been volatile over the last month.

More cyclical sectors such as oil & gas and financials were hardest hit by this volatility.  Banks are forecast to see reduced net interest margins and demand for energy usually moderates in times of weaker economic growth.

The Fund has protected you well against this volatility.    The underlying portfolio has limited bank exposure and has eschewed stocks such as the life insurance companies.  The Fund has no exposure to the oil sector.

Conversely, the investments in defensive consumer companies such as Nestlé and Unilever have performed notably well.  Investments in income-producing property and infrastructure companies also delivered robust positive returns in most cases, with Assura, an investor in GP surgeries, the best-performing holding in the portfolio.  Although we would much rather report that your investments had experienced a positive absolute return, it is the preservation of capital in weaker markets that enables the portfolio to steadily compound over the long term.

 

 

 

Source: Lipper, Link Fund Solutions Limited

Total Return 06/01/2016 Since Launch 31/08/2016 3 Years 31/08/2018 1 Year 28/02/2019 6 Months
Trojan Ethical Income O Acc +38.3% +27.7% +13.3% +13.4%
FTSE All-Share TR +36.3% +20.2% +0.4% +4.3%
Discrete Calendar Annual Returns (%) 2016 2017 2018 2019
Trojan Ethical Income O Acc +8.0% +10.2% -2.9% +19.7%

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 July 2019.

Risk Analysis Since Launch (06/01/2016) Trojan Ethical Income O Acc FTSE All-Share TR
Total Return +38.3% +36.3%
Max Drawdown -8.2% -15.0%
Best Month +4.8% +6.4%
Worst Month -4.9% -5.2%
Positive Months +62.8% +62.8%
Annualised Volatility +7.6% +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 5.3
Compass 4.4
Lloyds 3.8
Procter & Gamble 3.7
Colgate-Palmolive 3.5
GlaxoSmithKline 3.5
Nestlé 3.4
National Grid 3.4
AstraZeneca 3.4
RELX 3.2
Total Top 10 37.6
33 Other Holdings 57.0
Cash & Equivalent 5.4
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