Trojan Ethical Income Fund

Troy

A fully invested equity strategy that aims to provide investors with growing levels of income with resilient capital growth by investing at least 80% of its assets in UK and overseas equities and equity-related securities.

What does the fund do?

We manage a concentrated portfolio of 30-50 high-quality, cash-generative companies that are capable of consistent dividend growth. At least 60% of the Fund is invested in UK equities with a maximum if 30% invested in overseas equities.

Our long-term approach and focus on reasonably valued, high-quality, sustainable and cash generative companies leads to low portfolio turnover. 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.

View our ethical exclusion criteria

Why this fund?

We believe our approach to income investing is differentiated through; our conservative quality-orientated process, our focus on total return and our prioritisation of dividend growth above high yield.

We seek a sensible balance between capital and income return in order to deliver above average returns with below average volatility.

The strategy has no explicit yield target and instead we emphasise real growth and long-term sustainability of the income stream above producing the highest dividend yield today. In so doing, we aim to deliver investors a growing yield on their initial investment.

In addition to the Ethical Exclusion Criteria the The Fund integrates ESG and stewardship in accordance with Troy’s Responsible Investment & Stewardship Policy and also adheres to Troy’s Climate Change Mitigation Policy, in accordance with article 8 of SFDR.

View our SFDR disclosure

Commentary

June 2024

Your Fund returned of +0.8% during the month, compared to a return of -1.2% for the FTSE All-Share Index (TR).

In April’s Factsheet, we wrote about industrial technology company Halma as a recent addition to your Fund. In June, the company released a strong set of full year results that were well-received by the market. The shares gained +21.6% over the month, providing a good contribution to the Fund’s return over the period.

The results showed Halma’s typically consistent delivery – sales grew +10% in the year, reflecting a healthy mix of organic and acquisition-led growth, whilst operating profits grew +12% on the back of good margin expansion. The announcement of +7% dividend growth marked the company’s 45th consecutive annual rise.

Following the results, we again had the pleasure of meeting with management, including CEO Marc Ronchetti. Whilst Halma is already a well-established FTSE 100 company, what strikes us is the long-term opportunity that still lies ahead. Halma’s businesses operate in attractive, growing and purpose driven end-markets whilst their decentralized, global presence and disciplined approach to capital allocation provides ample of opportunity for further inorganic expansion.

For investors who are interested in learning more about Halma, we direct you to the latest UK Income Newsletter, in which we discuss what makes high-quality but seemingly unglamorous businesses such as this, such successful investments.

There was minimal portfolio activity within the month although late in June, we started a new UK holding within the Fund. We look forward to discussing the company in an upcoming factsheet.

Key facts

Fund Manager

Huge Ure

Inception date

06/01/2016

Currency

Sterling

Available share classes

O, I, S, X

ISIN (O Class)

GB00BYMLFK38 (Acc)
GB00BYMLFL45 (Inc)

Bloomberg (O Class)

TEIFOAC_LN (Acc)
TEIFOIN_LN (Inc)

Sedol (O Class)

BYMLFK3 (Acc)
BYMLFL4 (Inc)

Benchmarks

For more information on the benchmarks used please refer to the ‘use of benchmarks’ section in the fund information sheet

Ongoing Charges

‘O’ (ordinary) shares: 1.02%
‘X’ (platform) shares: 0.87%

‘O’ ACC SHARE CLASS as at 17/07/2024

149.22p

Fund size as at 30/06/2024

£201m

‘O’ INC SHARE CLASS as at 17/07/2024

119.77p

Performance

Source: Lipper, Waystone Management Limited.

06/01/201630/06/201930/06/202130/06/202331/12/2023
Since Launch5 Years3 Years1 Year6 Months
FTSE All-Share TR81.530.923.913.07.4
Trojan Ethical Income O Acc49.110.44.78.72.8
Discrete Calendar Annual Returns (%)201620172018201920202021202220232024
Trojan Ethical Income O Acc810.2-2.923.9-612.1-11.28.22.8

Performance is calculated on a total return basis, net of fees, in sterling terms. Past performance is not a guide to future performance

Source: Lipper, Waystone Management Limited.

Since Launch (06/01/2016) to 30 June 2024.

Risk and Volatility since launch

Source: Lipper, Waystone Management Limited.

Risk Analysis Since Launch (06/01/2016)Trojan Ethical Income O AccFTSE All-Share TR
Total Return4982
Max Drawdown-25-35
Best Month713
Worst Month-9-15
Positive Months6262
Annualised Volatility1012

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, Waystone Management Limited. As at 30 June 2024.

Asset allocation

Top 10 holdingsFund %
Unilever6.65066518331913
RELX6.55046594276218
Reckitt Benckiser4.47246932840023
Experian4.18016534310301
Bunzl3.91855095894743
LSEG3.76304265494725
National Grid3.6844808019384
Nestle3.57906855788345
GSK3.395370038449
Novartis3.11688853086469
Total Top 1043.3111673406148
29 Other Equity holdings55.4797181456302
Cash1.20911451375501
Total100

Asset allocation and holdings subject to change. As at 30 June 2024.

Fund literature

Document name Date Open/download Archived documents
Factsheet     View archive Hide archive
UCITS KIID     View share classes Hide share classes

Fund Information Sheet

View document Download document  
Prospectus & Additional Investor Information     View documents Hide documents

Sustainability-related Disclosures

View document Download document  

Troy’s Ethical Exclusion Criteria

View document Download document  
Newsletters     View newsletters Hide newsletters

Annual Report

January 2024 View document Download document  

Interim Report

July 2023 View document Download document  

Important Information

Past performance is not 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. In line with the Fund’s prospectus, the Fund is authorised to invest in transferable securities and money market instruments issued or guaranteed by an EEA state, one or more local authorities, a third country, or a public international body to which one or more EEA states belong.  The Investment Manager would only consider investing more than 35% of the Fund’s assets in UK or US government issued transferable securities or approved money market instruments. 

Some of the information contained on this page: (1) is proprietary to Morningstar and/or its content providers​; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. 

Important information for U.S. persons

The securities described on this website are neither available nor offered in the United States of America (including the District of Columbia or any other territory occupied or possessed by the United States of America) or to U.S. persons (including residents of the United States of America, residents within an area subject to its jurisdiction and U.S. persons who are resident outside the United States of America).

For the full fund disclaimer please refer to the Fund factsheet.

Please refer to Troy’s Glossary of Terms available here.

How to invest

Find more information on how to invest in this fund and where it is available.

How to invest

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