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Trojan Ethical Income X

Bestinvest LogoLight to mid green, UK ethical equity strategy, with a bias towards large-cap quality companies.

PRICE (INC)

100.34p

PRICE (ACC)

106.13p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.85%

ONGOING CHARGE

0.87%

YIELD

2.5%

1 YEAR
-3.37%

Prices as at 17 Aug 2022.

Fund commentary last updated 01 Nov 2021.

Past performance is not an indication of future performance.

Capital at risk.

The fund, run by London-based boutique Troy, aims to deliver income with the potential for capital growth over a period of between three to five years. At least 60% of its assets will be invested in UK equites, mainly large caps, with a maximum of 30% in overseas stocks. Fund manager Hugo Ure uses a bottom-up investment process with a focus on capital preservation and finding high quality companies that have sustainable revenues. The businesses must also meet his ethical investment criteria. Ure shuns companies involved in areas such as alcohol, fossil fuel, gambling, pornography, tobacco and armaments. His holdings include consumer goods giant Unilever, credit score firm Experian and catering group Compass.

Fund summary

SectorUnclassified
StructureOEIC
LaunchedFebruary 2020
Size£303m
Yield2.5%
Charging BasisCapital
Dividends paid31 Mar, 30 Sep

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.85%
Ongoing Charges Figure0.87%

Investment Process

The portfolio is constructed on a bottom-up basis and from an investment universe of 200 stocks – 100 from the UK and the rest from the US and the EU. These companies meet Troy’s definition of quality, namely recurring revenues, predictable growth, durable competitive advantages, and high free cash flow. Ure seeks companies with pricing power and who are protected by high barriers to entry such as a strong brand, relationships, networks, and intellectual property. He also wants to find sound balance sheets, so that management teams can allocate capital flexibly and act in the best interests of shareholders. The process draws the fund towards certain sectors, particularly consumer goods, healthcare, and business software. It tends to avoid more cyclical sectors. The next part of the process is to use the VigeoEIRIS negative screen on the stock universe. Ure looks for ESG factors which could impact long-term returns from a particular business, such as environmental challenges and issues that might result in legal or regulatory challenges, fines, or reputational damage. Exclusions include alcohol, gambling, pornography, fossil fuels and tobacco products. The next step is valuation, with Ure looking to buy companies when their shares are trading at a price which he believes significantly underestimates future cash flows. Macroeconomic research plays a part in the process, with Ure and his team focused on credit cycles and identifying unsustainable economic trends.

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning