Trojan Ethical Income Fund

SRI Style:

Ethical Style

SDR Labelling:

Unlabelled with sustainable characteristics

Product:

OEIC

Fund Region:

UK

Fund Asset Type:

Equity Income

Launch Date:

06/01/2016

Last Amended:

Jun 2025

Dialshifter ():

Fund Size:

£153.00m

(as at: 30/04/2025)

Total Screened Themed SRI Assets:

£1058.00m

(as at: 30/04/2025)

Total Responsible Ownership Assets:

£10007.00m

(as at: 30/04/2025)

Total Assets Under Management:

£11065.00m

(as at: 30/04/2025)

ISIN:

GB00BYMLFL45, GB00BKTW4T37, GB00BKTW4V58, GB00BYMLFK38, GB00BYMLFN68, GB00BYMLFM51, GB00BYMLFR07, GB00BYMLFQ99

Objectives:

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).The Fund invests in accordance with its published Ethical Exclusion Criteria.

Please note the Fund does not have a sustainability objective and is not SDR-labelled.

Sustainable, Responsible
&/or ESG Overview:

The Fund’s objective is outlined above and the Fund’s ESG policy and ethical exclusion criteria is described in further detail throughout this record.

Primary fund last amended:

Jun 2025

Information directly from fund manager.

Fund Filters

Sustainability - General
Sustainability policy

Funds that have policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See fund information.

Environmental - General
Environmental policy

Funds that have policies which relate to environmental issues. These will typically set out the fund's stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary. See fund information for further information.

Climate Change & Energy
Climate change / greenhouse gas emissions policy

Funds that have policies (documented strategies that explain their position on) climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary. Read fund details for further information.

Coal, oil & / or gas majors excluded

Funds that avoid investing in major coal, oil and/or gas (extraction) companies. Funds vary: some may exclude all companies that extract oil. Others may have exposure to oil extraction via more diversified energy companies. See fund literature to confirm details.

Fracking and tar sands excluded

Funds that avoid companies involved in fracking and tar sands - which are widely regarded as controversial methods of oil and gas extraction. Strategies vary. See fund information for further information.

Fossil fuel reserves exclusion

Funds that avoid investing in companies with coal, oil and gas reserves. See fund information for further details.

Encourage transition to low carbon through stewardship activity

A core element of these funds will aim to encourage the transition to lower carbon activities through responsible ownership / stewardship / engagement / voting activity

Fossil fuel exploration exclusion - direct involvement

The fund manager excludes companies with direct involvement in fossil fuel exploration (eg coal, oil and gas companies)

Fossil fuel exploration exclusion – indirect involvement

The fund manager excludes companies with indirect involvement in fossil fuel exploration. For example they would be expected to exclude banks and insurance companies that are effectively enabling new coal, oil and or gas reserves to be discovered and in due course extracted through the provision of necessary finance or services.

Require net zero action plan from all/most companies

Find funds that require all, or almost all, of the companies it invests in to have a ‘net zero action plan’ - meaning that the companies they invest in have worked out how they will, over time, reduce their total carbon (and other greenhouse gas) emissions to nil.

TCFD reporting requirement (Becoming IFRS)

Will only invest in companies that report greenhouse gas emissions reduction strategies in line with the framework set out the by the Taskforce for Climate Related Financial Disclosure, which is increasingly becoming mandatory. See https://www.fsb-tcfd.org/ https ://www.ifrs.org/sustainability/tcfd/

Social / Employment
Favours companies with strong social policies

Find funds that invest in line with positive strategies that relate to 'people' issues - such as having strong human rights, labour standards and equal opportunities practices. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices. Read fund literature for further information.

Responsible mining policy

Fund has a policy that explains their position on which mining companies they may or may not invest in. Typically this may mean only investing in assets with high environmental and social standards. This is a growing concern given demand for rare earth metals eg lithium, cobalt. See fund information.

Mining exclusion

All mining companies excluded

Ethical Values Led Exclusions
Tobacco and related product manufacturers excluded

Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.

Controversial weapons exclusion

Find funds that exclude companies which make controversial weapons such as landmines, cluster munitions and chemical weapons. See fund literature for further information.

Armaments manufacturers avoided

Find funds that avoid companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non-strategic military products. See fund literature for fund specific details.

Civilian firearms production exclusion

Find funds with a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.

Alcohol production excluded

Find funds that avoid investment in companies involved in the production of alcohol. Strategies vary; some funds allow a small proportion of profits to come from this area. See fund literature for further information.

Gambling avoidance policy

Find funds that avoid companies with significant involvement in the gambling industry. Some funds may allow a small proportion of profits to come from this area. See fund policy for further details.

Pornography avoidance policy

Find funds that avoid companies that derive significant income from pornography and related areas. Strategies vary. See fund details for further information.

Human Rights
Modern slavery exclusion policy

The fund has a policy which excludes assets with involvement in Modern Slavery

Banking & Financials
Predatory lending exclusion

Fund excludes financial services companies with widely criticised, aggressive lending practices where interest rates are typically very high, includes ‘doorstep lending’)

Governance & Management
Governance policy

Find fund options that have policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary. See fund literature for further information.

Avoids companies with poor governance

Find funds that aim to avoid investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards. See fund literature for further information.

UN sanctions exclusion

Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list

Encourage board diversity e.g. gender

Fund managers encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)

Encourage higher ESG standards through stewardship activity

A core element of these funds will aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity

Fund Governance
ESG integration strategy

Find funds that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature.

Asset Size
Over 50% large cap companies

Find funds that invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion.

Invests mostly in large cap companies / assets

Find funds that have SRI strategies and focus their investment stock selection on larger companies. (e.g. over circa £5-£10bn)

How The Fund Works
Negative selection bias

Find funds where their main 'ethical approach' is to avoid companies by using negative screening criteria. Read fund literature for further information.

Combines ESG strategy with other SRI criteria

Find funds that have an ESG strategy (which is typically focused on avoiding companies that pose environmental, social or governance related risks) with additional criteria such as positive and/or negative screens, themes and stewardship strategies.

Focus on ESG risk mitigation

A major focus of these funds is the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).

SRI / ESG / Ethical policies explained on website

Find funds that have published explanations of their ethical, social and/or environmental policies online (i.e. fund decision making strategies/ buy/sell &/or asset management strategies).

Do not use stock / securities lending

This fund does not use stock lending for performance or risk purposes.

Intended Clients & Product Options
Intended for investors interested in sustainability

Finds funds designed to meet the needs of individual investors with an interest in sustainability issues.

Intended for clients interested in ethical issues

Find funds designed for clients who care about ethical and values-based issues, often alongside sustainability issues also.

Faith friendly

Find funds that have attributes that commonly suit the aims of investors of faith - although they may not be specifically marketed as being only for religious investors. Strategies vary (as do investor aims). Read fund literature for further information.

Available via an ISA (OEIC only)

Find funds that are available via a tax efficient ISA product wrapper.

Labels & Accreditations
SFDR Article 8 fund / product (EU)

Finds funds classified under Article 8 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 8 of the SFDR is a set of requirements that apply to financial products that 'promote' environmental or social characteristics with high governance also. These rules do not currently apply to UK funds so many managers may leave this field blank.

Fund Management Company Information

About The Business
Boutique / specialist fund management company

Find fund management companies that are smaller or specialise in particular areas - notably, ideally ESG related. Strategies vary.

Responsible ownership / stewardship policy or strategy (AFM company wide)

Finds fund management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.

ESG / SRI engagement (AFM company wide)

Find fund management companies that actively encourage higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.

Vote all* shares at AGMs / EGMs (AFM company wide)

Find fund managers that vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' demonstrating their support for or disagreement with management policy. (*situations can legitimately, occasionally occur where voting proves impossible, but in principle all shares should be voted.)

Responsible ownership policy for non SRI funds (AFM company wide)

Find funds run by fund managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies they invest in across funds (not normally limited to ethical or SRI options.) Read fund literature for further information.

Integrates ESG factors into all / most (AFM) fund research

Find fund management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.

In-house diversity improvement programme (AFM company wide)

Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.

Diversity, equality & inclusion engagement policy (AFM company wide)

Find fund management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide).

Offer structured intermediary training on sustainable investment

Fund management entity offers unstructured intermediary training on sustainable investment (ie for financial advisers and wealth managers)

Collaborations & Affiliations
PRI signatory

Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment'.

Investment Association (IA) member

Fund management entity is a member of the Investment Association https://www.theia.org/

Resources
In-house responsible ownership / voting expertise

Find fund management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.

Use specialist ESG / SRI / sustainability research companies

Find fund management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.

ESG specialists on all investment desks (AFM company wide)

Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types)

Accreditations
PRI A+ rated (AFM company wide)

Finds organisations / fund managers that have an A+ PRI rating - meaning they are highly rated according to the 'Principles of Responsible Investment'

UK Stewardship Code signatory (AFM company wide)

Find fund managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where fund managers are encouraged to behave like responsible, typically longer term 'company owners'.

Engagement Approach
Regularly lead collaborative ESG initiatives (AFM company wide)

Find fund management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.

Encourage responsible corporate taxation (AFM company wide)

Find fund management companies that are working with the companies they invest in to encourage more responsible corporate taxation.

Engaging on climate change issues

Fund manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.

Engaging with fossil fuel companies on climate change

Asset manager has a stewardship /responsible ownership strategy that involves working with fossil fuel companies on climate change related issues. See fund manager website for details.

Engaging on biodiversity / nature issues

The asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global

Engaging to encourage a Just Transition

Asset manager has a responsible ownership / stewardship strategy which means they are working to encourage the shift to more sustainable business practices in ways that respect and are sensitive to social issues and the impact change has on people effected by the changes that are taking place. https://www.transitionpathwayinitiative.org/ https://transitiontaskforce.net/

Engaging on human rights issues

Asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards

Engaging on labour / employment issues

Asset manager has responsible ownership / stewardship strategy in place that aims to improve labour standards for the benefit of employees in investee companies (and potentially their suppliers)

Engaging on diversity, equality and / or inclusion issues

Asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets

Engaging to stop modern slavery

working with the assets they hold to help stamp out modern slavery - where direct or indirect company employees are exploited for business benefits.

Engaging on governance issues

Fund managers have stewardship strategies in place that focus on improving governance standards across investee assets

Engaging on responsible supply chain issues

Has a stewardship / responsible ownership strategy that encourages responsible supply chain - ie the managers will discuss environmental, social and governance issues with investee companies with the aim of raising standards

Engaging on the responsible use of AI

Working to address sustainability, ESG and related concerns around artificial intelligence.

Stewardship escalation policy

Escalation policies describe how a manager will proceed if stewardship / engagement activity is not successful in the short term.

Climate & Net Zero Transition
Net Zero commitment (AFM company wide)

Fund management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.

Voting policy includes net zero targets (AFM company wide)

Fund manager AGM / EGM voting strategy has processes in place that mean they will normally be expected to vote in a way that will encourage the transition to net zero greenhouse gas emissions.

Publish 'CEO owned' Climate Risk policy (AFM company wide)

Find fund management companies that have published a Climate Risk policy or statement that is signed / owned by their Chief Executive.

Net Zero - have set a Net Zero target date (AFM company wide)

This asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.

Encourage carbon / greenhouse gas reduction (AFM company wide)

Find fund management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.

Carbon transition plan published (AFM company wide)

Finds organisations / fund managers that have a company wide carbon transition plan - meaning that they have plotted a path to how they will move away from activities that produce or use carbon based energy sources (that emit greenhouse gases) towards clean, alternative, renewable energy sources.

‘Forward Looking Climate Metrics’ published / ITR (AFM company wide)

Finds organisations / fund managers that have published ‘forward looking climate metrics’ e.g. 'implied temperature rise' data that are a total of the asset management company's share (% owned) of all the investee company emissions of the assets they manage, as well as their own direct and other indirect emissions.

Carbon offsetting – do NOT offset carbon as part of net zero plan (AFM company wide)

This asset management company plans to achieve net zero greenhouse gas (CO2e) emissions by reducing their emissions. Calculations and scope vary.

In-house carbon / GHG reduction policy (AFM company wide)

Find fund management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.

Working towards a ‘Net Zero’ commitment (AFM company wide)

Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to'zero'.

Transparency
Publish responsible ownership / stewardship report (AFM company wide)

Find fund management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.

Full SRI / responsible ownership policy information on company website

Find companies that publish information about their sustainable and responsible investment strategies on their company website.

Full SRI / responsible ownership policy information available on request

Find fund management companies that will supply information about their sustainable and responsible investment activity on request.

Publish full voting record (AFM company wide)

Fund management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards.

Net Zero transition plan publicly available (AFM company wide)

This asset management company has published a plan that explains how they are going to achieve net zero greenhouse gas / CO2e emissions.

Sustainable, Responsible &/or ESG Policy:

Trojan Ethical Income Fund employs negative screening in accordance with its published Ethical Exclusion Criteria in relation to fossil fuels, gambling, alcohol, high interest rate lending, pornography, tobacco and certain types of armaments. The Fund Manager is responsible for the implementation of the screening process by utilising MSCI ESG Research. The negative screens are predominantly based on revenue thresholds and are not impacted by valuation or other factors.

The Ethical Exclusion Criteria is as follows:

  • Armaments
    •  generates more than 10% of its total turnover from strategic military supplies relating to conventional weapons and/or
    • produces key parts of, or provides services for, cluster munitions systems, and/or
    • is alleged to have contravened the convention on anti-personnel mines in the last ten years and which has not addressed the allegations, and/or
    • manufactures products, or provides services, which are all or part of a nuclear weapons system.
  • Tobacco – makes more than 10% of its total turnover from tobacco products.
  • Pornography – derives more than 3% of its total turnover from pornography or adult entertainment.
  • Fossil Fuels –
    • derives more than 10% of its total turnover from the refining or extraction of, or generation of power from, fossil fuels and/or
    • derives more than 10% of its turnover from coal mining activities. Companies whose listing falls within the Oil & Gas sector are also excluded.
  • Alcohol – derives more than 10% of its total turnover from the sale or production of alcohol.
  • Gambling – derives more than 10% of its total turnover from gambling (including spread betting).
  • High Interest Rate Lending – derives more than 10% of its total turnover from high interest rate lending (high interest being defined as lending at an annual percentage rate (APR) of over 100%).


In 2022, we also published a Climate Change Mitigation Policy seeking to categorise funds as ‘Article 8’ under the Sustainable Finance Disclosure Regulations (SFDR). The asset classes within scope are equities and the Policy focusses on the impact of portfolio companies on society and environment and how Troy’s investment process can mitigate the adverse contribution to global temperature change from its portfolio companies.

Please also read our Troy Responsible & Stewardship Policy and Troy Climate Change Mitigation Policy.

Process:

We care deeply about the sustainability of a company’s returns. Experience shows that non-financial factors, for instance, how a company treats its people, manages its environmental impacts, or responds to new technologies and regulation, can have a real impact on long-term value.

ESG is embedded in our bottom-up research. We avoid the use of checklists or prescriptive scores and instead choose to assess each company on its own merits, focusing on what’s financially material to that business and its industry. This is how we ensure our research is detailed, meaningful, and capable of generating real investment insight, which is integrated into the way we understand companies and make decisions.

Our analysts and Fund Managers are directly responsible for integrating ESG considerations into company analysis. It is not outsourced to a separate team but carried out by our Investment Team as an essential part of rigorous research and analysis. We use a combination of internal and third-party research to assess ESG factors. The aim is to build a fuller picture of how these issues might influence both the financial and non-financial aspects of a business, whether it is the operating performance, growth and margins of a company, or its culture, strategic decision-making, and adaptability.

These insights help us build a more complete understanding of each company’s long-term risk and return profile, informing our fundamental view of business quality. In turn, they shape how we engage with companies, how we vote, and form part of how we assess risk in our investment decisions. Where we identify material ESG risks that are not well managed, we may require a greater margin of safety when investing or choose to avoid the investment altogether.

We also conduct thematic ESG research on issues such as climate risk, GLP-1s, AI-related energy intensity, and modern slavery in supply chains. This work helps us track emerging risks across portfolios, identify potential areas of exposure, benchmark companies against evolving best practices, and support more targeted engagement.

In 2024, we have explored thematic research areas of board diversity and artificial intelligence. In particular, we have explored the energy intensity of AI and what impact the increased deployment of AI tools will have on company decarbonisation targets. We continue to monitor the progress our investee companies have been making on their decarbonisation plans and have increasingly been understanding the impact that physical climate risk will have using MSCI’s CVaR data.

To supplement Troy’s own ESG research, we have selected and subscribe to specific ESG research from MSCI ESG Research, Sustainalytics, Bloomberg and ISS. These vendors provide Troy with research, news flags and company ratings relating to ESG factors on the companies within Troy’s investment universe. To further support our ESG capability, Troy may from time to time receive services from additional research providers. We recently acquired RepRisk data. RepRisk is a controversies data provider. We hope that this data will provide us with another tool to enhance the quality of our research and explore relevant and material topics during company meetings.

Decisions are progressed in our formal weekly investment meetings. This is the forum for the presentation and discussion of company research notes and ongoing monitoring work. Attendance is mandatory. To aid depth of scrutiny, research notes are submitted in advance and questions are collated ahead of the meeting. Decisions about Troy’s Investment Universe are taken collectively at the investment meeting. Company meetings, conferences and significant portfolio transactions are also discussed. Fund Managers are also required periodically to formally present their strategy portfolio to the team for review and challenge.

At the portfolio level, buy, sell and position sizing decisions are taken by the relevant Fund Manager, who has ultimate accountability.

 

The Fund does not have a UK sustainable investment label as it does not have a sustainable objective as part of its investment objective. Despite not having a sustainable investment objective, when investing in companies, Troy integrates the analysis of sustainability characteristics into its investment decision-making. Troy also considers the steps companies are taking in relation to climate change mitigation, as set out in our Troy Climate Change Mitigation Policy.

Resources, Affiliations & Corporate Strategies:

The analysis of ESG factors is not an adjunct or an overlay to our process. Stewardship and ESG research are deeply integrated into Troy’s investment research and decision-making and inform our opinions on the long-term prospects for every company we own. Troy’s Investment Team comprises 13 members who are collectively responsible for the integration of ESG into Troy’s research and analysis as well as engagement and voting.

Troy’s Research Director, Gabrielle Boyle, is ultimately accountable to the Board for our responsible investment and stewardship activities and, together with the CIO, Sebastian Lyon, supervises the Deputy CIO, Tom Yeowart, who chairs the Responsible Investment & Climate Committee (RI&CC). The RI&CC meets quarterly and is responsible for the oversight of Troy's ESG and responsible investment activities, the review of ESG service providers and for Troy's active ownership responsibilities.

Please see a list of the collaborative industry bodies that Troy is a member/signatory of:

  • 2016 United Nations’ Principles for Responsible Investment (UN PRI)
  • 2019 The Investor Forum
  • 2020 UK Stewardship Code 2020
  • 2021 Task Force for Climate – Related Financial Disclosures (TCFD)
  • 2021 Climate Action 100+
  • 2021 Net Zero Asset Managers initiative (NZAM)

SDR Labelling:

Unlabelled with sustainable characteristics

Key Performance Indicators:

The Fund does not have a UK sustainable investment label as it does not have a sustainable objective as part of its investment objective. Despite not having a sustainable investment objective, when investing in companies, Troy integrates the analysis of sustainability characteristics into its investment decision-making. Troy also considers the steps companies are taking in relation to climate change mitigation, as set out in our Troy Climate Change Mitigation Policy.

 

 

Fund Name SRI Style SDR Labelling Product Region Asset Type Launch Date Last Amended

Trojan Ethical Income Fund

Ethical Style Unlabelled with sustainable characteristics OEIC UK Equity Income 06/01/2016 Jun 2025

Objectives

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).The Fund invests in accordance with its published Ethical Exclusion Criteria.

Please note the Fund does not have a sustainability objective and is not SDR-labelled.

Fund Size: £153.00m

(as at: 30/04/2025)

Total Screened Themed SRI Assets: £1058.00m

(as at: 30/04/2025)

Total Responsible Ownership Assets: £10007.00m

(as at: 30/04/2025)

Total Assets Under Management: £11065.00m

(as at: 30/04/2025)

ISIN: GB00BYMLFL45, GB00BKTW4T37, GB00BKTW4V58, GB00BYMLFK38, GB00BYMLFN68, GB00BYMLFM51, GB00BYMLFR07, GB00BYMLFQ99

Contact Us: Tom Brooksbank: tb@taml.co.uk

Sustainable, Responsible &/or ESG Overview

The Fund’s objective is outlined above and the Fund’s ESG policy and ethical exclusion criteria is described in further detail throughout this record.

Primary fund last amended: Jun 2025

Information received directly from Fund Manager

Please select what you would like to read:

Fund Filters

Sustainability - General
Sustainability policy

Funds that have policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See fund information.

Environmental - General
Environmental policy

Funds that have policies which relate to environmental issues. These will typically set out the fund's stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary. See fund information for further information.

Climate Change & Energy
Climate change / greenhouse gas emissions policy

Funds that have policies (documented strategies that explain their position on) climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary. Read fund details for further information.

Coal, oil & / or gas majors excluded

Funds that avoid investing in major coal, oil and/or gas (extraction) companies. Funds vary: some may exclude all companies that extract oil. Others may have exposure to oil extraction via more diversified energy companies. See fund literature to confirm details.

Fracking and tar sands excluded

Funds that avoid companies involved in fracking and tar sands - which are widely regarded as controversial methods of oil and gas extraction. Strategies vary. See fund information for further information.

Fossil fuel reserves exclusion

Funds that avoid investing in companies with coal, oil and gas reserves. See fund information for further details.

Encourage transition to low carbon through stewardship activity

A core element of these funds will aim to encourage the transition to lower carbon activities through responsible ownership / stewardship / engagement / voting activity

Fossil fuel exploration exclusion - direct involvement

The fund manager excludes companies with direct involvement in fossil fuel exploration (eg coal, oil and gas companies)

Fossil fuel exploration exclusion – indirect involvement

The fund manager excludes companies with indirect involvement in fossil fuel exploration. For example they would be expected to exclude banks and insurance companies that are effectively enabling new coal, oil and or gas reserves to be discovered and in due course extracted through the provision of necessary finance or services.

Require net zero action plan from all/most companies

Find funds that require all, or almost all, of the companies it invests in to have a ‘net zero action plan’ - meaning that the companies they invest in have worked out how they will, over time, reduce their total carbon (and other greenhouse gas) emissions to nil.

TCFD reporting requirement (Becoming IFRS)

Will only invest in companies that report greenhouse gas emissions reduction strategies in line with the framework set out the by the Taskforce for Climate Related Financial Disclosure, which is increasingly becoming mandatory. See https://www.fsb-tcfd.org/ https ://www.ifrs.org/sustainability/tcfd/

Social / Employment
Favours companies with strong social policies

Find funds that invest in line with positive strategies that relate to 'people' issues - such as having strong human rights, labour standards and equal opportunities practices. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices. Read fund literature for further information.

Responsible mining policy

Fund has a policy that explains their position on which mining companies they may or may not invest in. Typically this may mean only investing in assets with high environmental and social standards. This is a growing concern given demand for rare earth metals eg lithium, cobalt. See fund information.

Mining exclusion

All mining companies excluded

Ethical Values Led Exclusions
Tobacco and related product manufacturers excluded

Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.

Controversial weapons exclusion

Find funds that exclude companies which make controversial weapons such as landmines, cluster munitions and chemical weapons. See fund literature for further information.

Armaments manufacturers avoided

Find funds that avoid companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non-strategic military products. See fund literature for fund specific details.

Civilian firearms production exclusion

Find funds with a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.

Alcohol production excluded

Find funds that avoid investment in companies involved in the production of alcohol. Strategies vary; some funds allow a small proportion of profits to come from this area. See fund literature for further information.

Gambling avoidance policy

Find funds that avoid companies with significant involvement in the gambling industry. Some funds may allow a small proportion of profits to come from this area. See fund policy for further details.

Pornography avoidance policy

Find funds that avoid companies that derive significant income from pornography and related areas. Strategies vary. See fund details for further information.

Human Rights
Modern slavery exclusion policy

The fund has a policy which excludes assets with involvement in Modern Slavery

Banking & Financials
Predatory lending exclusion

Fund excludes financial services companies with widely criticised, aggressive lending practices where interest rates are typically very high, includes ‘doorstep lending’)

Governance & Management
Governance policy

Find fund options that have policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary. See fund literature for further information.

Avoids companies with poor governance

Find funds that aim to avoid investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards. See fund literature for further information.

UN sanctions exclusion

Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list

Encourage board diversity e.g. gender

Fund managers encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)

Encourage higher ESG standards through stewardship activity

A core element of these funds will aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity

Fund Governance
ESG integration strategy

Find funds that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature.

Asset Size
Over 50% large cap companies

Find funds that invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion.

Invests mostly in large cap companies / assets

Find funds that have SRI strategies and focus their investment stock selection on larger companies. (e.g. over circa £5-£10bn)

How The Fund Works
Negative selection bias

Find funds where their main 'ethical approach' is to avoid companies by using negative screening criteria. Read fund literature for further information.

Combines ESG strategy with other SRI criteria

Find funds that have an ESG strategy (which is typically focused on avoiding companies that pose environmental, social or governance related risks) with additional criteria such as positive and/or negative screens, themes and stewardship strategies.

Focus on ESG risk mitigation

A major focus of these funds is the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).

SRI / ESG / Ethical policies explained on website

Find funds that have published explanations of their ethical, social and/or environmental policies online (i.e. fund decision making strategies/ buy/sell &/or asset management strategies).

Do not use stock / securities lending

This fund does not use stock lending for performance or risk purposes.

Intended Clients & Product Options
Intended for investors interested in sustainability

Finds funds designed to meet the needs of individual investors with an interest in sustainability issues.

Intended for clients interested in ethical issues

Find funds designed for clients who care about ethical and values-based issues, often alongside sustainability issues also.

Faith friendly

Find funds that have attributes that commonly suit the aims of investors of faith - although they may not be specifically marketed as being only for religious investors. Strategies vary (as do investor aims). Read fund literature for further information.

Available via an ISA (OEIC only)

Find funds that are available via a tax efficient ISA product wrapper.

Labels & Accreditations
SFDR Article 8 fund / product (EU)

Finds funds classified under Article 8 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 8 of the SFDR is a set of requirements that apply to financial products that 'promote' environmental or social characteristics with high governance also. These rules do not currently apply to UK funds so many managers may leave this field blank.

Fund Management Company Information

About The Business
Boutique / specialist fund management company

Find fund management companies that are smaller or specialise in particular areas - notably, ideally ESG related. Strategies vary.

Responsible ownership / stewardship policy or strategy (AFM company wide)

Finds fund management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.

ESG / SRI engagement (AFM company wide)

Find fund management companies that actively encourage higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.

Vote all* shares at AGMs / EGMs (AFM company wide)

Find fund managers that vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' demonstrating their support for or disagreement with management policy. (*situations can legitimately, occasionally occur where voting proves impossible, but in principle all shares should be voted.)

Responsible ownership policy for non SRI funds (AFM company wide)

Find funds run by fund managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies they invest in across funds (not normally limited to ethical or SRI options.) Read fund literature for further information.

Integrates ESG factors into all / most (AFM) fund research

Find fund management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.

In-house diversity improvement programme (AFM company wide)

Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.

Diversity, equality & inclusion engagement policy (AFM company wide)

Find fund management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide).

Offer structured intermediary training on sustainable investment

Fund management entity offers unstructured intermediary training on sustainable investment (ie for financial advisers and wealth managers)

Collaborations & Affiliations
PRI signatory

Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment'.

Investment Association (IA) member

Fund management entity is a member of the Investment Association https://www.theia.org/

Resources
In-house responsible ownership / voting expertise

Find fund management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.

Use specialist ESG / SRI / sustainability research companies

Find fund management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.

ESG specialists on all investment desks (AFM company wide)

Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types)

Accreditations
PRI A+ rated (AFM company wide)

Finds organisations / fund managers that have an A+ PRI rating - meaning they are highly rated according to the 'Principles of Responsible Investment'

UK Stewardship Code signatory (AFM company wide)

Find fund managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where fund managers are encouraged to behave like responsible, typically longer term 'company owners'.

Engagement Approach
Regularly lead collaborative ESG initiatives (AFM company wide)

Find fund management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.

Encourage responsible corporate taxation (AFM company wide)

Find fund management companies that are working with the companies they invest in to encourage more responsible corporate taxation.

Engaging on climate change issues

Fund manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.

Engaging with fossil fuel companies on climate change

Asset manager has a stewardship /responsible ownership strategy that involves working with fossil fuel companies on climate change related issues. See fund manager website for details.

Engaging on biodiversity / nature issues

The asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global

Engaging to encourage a Just Transition

Asset manager has a responsible ownership / stewardship strategy which means they are working to encourage the shift to more sustainable business practices in ways that respect and are sensitive to social issues and the impact change has on people effected by the changes that are taking place. https://www.transitionpathwayinitiative.org/ https://transitiontaskforce.net/

Engaging on human rights issues

Asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards

Engaging on labour / employment issues

Asset manager has responsible ownership / stewardship strategy in place that aims to improve labour standards for the benefit of employees in investee companies (and potentially their suppliers)

Engaging on diversity, equality and / or inclusion issues

Asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets

Engaging to stop modern slavery

working with the assets they hold to help stamp out modern slavery - where direct or indirect company employees are exploited for business benefits.

Engaging on governance issues

Fund managers have stewardship strategies in place that focus on improving governance standards across investee assets

Engaging on responsible supply chain issues

Has a stewardship / responsible ownership strategy that encourages responsible supply chain - ie the managers will discuss environmental, social and governance issues with investee companies with the aim of raising standards

Engaging on the responsible use of AI

Working to address sustainability, ESG and related concerns around artificial intelligence.

Stewardship escalation policy

Escalation policies describe how a manager will proceed if stewardship / engagement activity is not successful in the short term.

Climate & Net Zero Transition
Net Zero commitment (AFM company wide)

Fund management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.

Voting policy includes net zero targets (AFM company wide)

Fund manager AGM / EGM voting strategy has processes in place that mean they will normally be expected to vote in a way that will encourage the transition to net zero greenhouse gas emissions.

Publish 'CEO owned' Climate Risk policy (AFM company wide)

Find fund management companies that have published a Climate Risk policy or statement that is signed / owned by their Chief Executive.

Net Zero - have set a Net Zero target date (AFM company wide)

This asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.

Encourage carbon / greenhouse gas reduction (AFM company wide)

Find fund management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.

Carbon transition plan published (AFM company wide)

Finds organisations / fund managers that have a company wide carbon transition plan - meaning that they have plotted a path to how they will move away from activities that produce or use carbon based energy sources (that emit greenhouse gases) towards clean, alternative, renewable energy sources.

‘Forward Looking Climate Metrics’ published / ITR (AFM company wide)

Finds organisations / fund managers that have published ‘forward looking climate metrics’ e.g. 'implied temperature rise' data that are a total of the asset management company's share (% owned) of all the investee company emissions of the assets they manage, as well as their own direct and other indirect emissions.

Carbon offsetting – do NOT offset carbon as part of net zero plan (AFM company wide)

This asset management company plans to achieve net zero greenhouse gas (CO2e) emissions by reducing their emissions. Calculations and scope vary.

In-house carbon / GHG reduction policy (AFM company wide)

Find fund management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.

Working towards a ‘Net Zero’ commitment (AFM company wide)

Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to'zero'.

Transparency
Publish responsible ownership / stewardship report (AFM company wide)

Find fund management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.

Full SRI / responsible ownership policy information on company website

Find companies that publish information about their sustainable and responsible investment strategies on their company website.

Full SRI / responsible ownership policy information available on request

Find fund management companies that will supply information about their sustainable and responsible investment activity on request.

Publish full voting record (AFM company wide)

Fund management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards.

Net Zero transition plan publicly available (AFM company wide)

This asset management company has published a plan that explains how they are going to achieve net zero greenhouse gas / CO2e emissions.

Sustainable, Responsible &/or ESG Policy:

Trojan Ethical Income Fund employs negative screening in accordance with its published Ethical Exclusion Criteria in relation to fossil fuels, gambling, alcohol, high interest rate lending, pornography, tobacco and certain types of armaments. The Fund Manager is responsible for the implementation of the screening process by utilising MSCI ESG Research. The negative screens are predominantly based on revenue thresholds and are not impacted by valuation or other factors.

The Ethical Exclusion Criteria is as follows:

  • Armaments
    •  generates more than 10% of its total turnover from strategic military supplies relating to conventional weapons and/or
    • produces key parts of, or provides services for, cluster munitions systems, and/or
    • is alleged to have contravened the convention on anti-personnel mines in the last ten years and which has not addressed the allegations, and/or
    • manufactures products, or provides services, which are all or part of a nuclear weapons system.
  • Tobacco – makes more than 10% of its total turnover from tobacco products.
  • Pornography – derives more than 3% of its total turnover from pornography or adult entertainment.
  • Fossil Fuels –
    • derives more than 10% of its total turnover from the refining or extraction of, or generation of power from, fossil fuels and/or
    • derives more than 10% of its turnover from coal mining activities. Companies whose listing falls within the Oil & Gas sector are also excluded.
  • Alcohol – derives more than 10% of its total turnover from the sale or production of alcohol.
  • Gambling – derives more than 10% of its total turnover from gambling (including spread betting).
  • High Interest Rate Lending – derives more than 10% of its total turnover from high interest rate lending (high interest being defined as lending at an annual percentage rate (APR) of over 100%).


In 2022, we also published a Climate Change Mitigation Policy seeking to categorise funds as ‘Article 8’ under the Sustainable Finance Disclosure Regulations (SFDR). The asset classes within scope are equities and the Policy focusses on the impact of portfolio companies on society and environment and how Troy’s investment process can mitigate the adverse contribution to global temperature change from its portfolio companies.

Please also read our Troy Responsible & Stewardship Policy and Troy Climate Change Mitigation Policy.

Process:

We care deeply about the sustainability of a company’s returns. Experience shows that non-financial factors, for instance, how a company treats its people, manages its environmental impacts, or responds to new technologies and regulation, can have a real impact on long-term value.

ESG is embedded in our bottom-up research. We avoid the use of checklists or prescriptive scores and instead choose to assess each company on its own merits, focusing on what’s financially material to that business and its industry. This is how we ensure our research is detailed, meaningful, and capable of generating real investment insight, which is integrated into the way we understand companies and make decisions.

Our analysts and Fund Managers are directly responsible for integrating ESG considerations into company analysis. It is not outsourced to a separate team but carried out by our Investment Team as an essential part of rigorous research and analysis. We use a combination of internal and third-party research to assess ESG factors. The aim is to build a fuller picture of how these issues might influence both the financial and non-financial aspects of a business, whether it is the operating performance, growth and margins of a company, or its culture, strategic decision-making, and adaptability.

These insights help us build a more complete understanding of each company’s long-term risk and return profile, informing our fundamental view of business quality. In turn, they shape how we engage with companies, how we vote, and form part of how we assess risk in our investment decisions. Where we identify material ESG risks that are not well managed, we may require a greater margin of safety when investing or choose to avoid the investment altogether.

We also conduct thematic ESG research on issues such as climate risk, GLP-1s, AI-related energy intensity, and modern slavery in supply chains. This work helps us track emerging risks across portfolios, identify potential areas of exposure, benchmark companies against evolving best practices, and support more targeted engagement.

In 2024, we have explored thematic research areas of board diversity and artificial intelligence. In particular, we have explored the energy intensity of AI and what impact the increased deployment of AI tools will have on company decarbonisation targets. We continue to monitor the progress our investee companies have been making on their decarbonisation plans and have increasingly been understanding the impact that physical climate risk will have using MSCI’s CVaR data.

To supplement Troy’s own ESG research, we have selected and subscribe to specific ESG research from MSCI ESG Research, Sustainalytics, Bloomberg and ISS. These vendors provide Troy with research, news flags and company ratings relating to ESG factors on the companies within Troy’s investment universe. To further support our ESG capability, Troy may from time to time receive services from additional research providers. We recently acquired RepRisk data. RepRisk is a controversies data provider. We hope that this data will provide us with another tool to enhance the quality of our research and explore relevant and material topics during company meetings.

Decisions are progressed in our formal weekly investment meetings. This is the forum for the presentation and discussion of company research notes and ongoing monitoring work. Attendance is mandatory. To aid depth of scrutiny, research notes are submitted in advance and questions are collated ahead of the meeting. Decisions about Troy’s Investment Universe are taken collectively at the investment meeting. Company meetings, conferences and significant portfolio transactions are also discussed. Fund Managers are also required periodically to formally present their strategy portfolio to the team for review and challenge.

At the portfolio level, buy, sell and position sizing decisions are taken by the relevant Fund Manager, who has ultimate accountability.

 

The Fund does not have a UK sustainable investment label as it does not have a sustainable objective as part of its investment objective. Despite not having a sustainable investment objective, when investing in companies, Troy integrates the analysis of sustainability characteristics into its investment decision-making. Troy also considers the steps companies are taking in relation to climate change mitigation, as set out in our Troy Climate Change Mitigation Policy.

Resources, Affiliations & Corporate Strategies:

The analysis of ESG factors is not an adjunct or an overlay to our process. Stewardship and ESG research are deeply integrated into Troy’s investment research and decision-making and inform our opinions on the long-term prospects for every company we own. Troy’s Investment Team comprises 13 members who are collectively responsible for the integration of ESG into Troy’s research and analysis as well as engagement and voting.

Troy’s Research Director, Gabrielle Boyle, is ultimately accountable to the Board for our responsible investment and stewardship activities and, together with the CIO, Sebastian Lyon, supervises the Deputy CIO, Tom Yeowart, who chairs the Responsible Investment & Climate Committee (RI&CC). The RI&CC meets quarterly and is responsible for the oversight of Troy's ESG and responsible investment activities, the review of ESG service providers and for Troy's active ownership responsibilities.

Please see a list of the collaborative industry bodies that Troy is a member/signatory of:

  • 2016 United Nations’ Principles for Responsible Investment (UN PRI)
  • 2019 The Investor Forum
  • 2020 UK Stewardship Code 2020
  • 2021 Task Force for Climate – Related Financial Disclosures (TCFD)
  • 2021 Climate Action 100+
  • 2021 Net Zero Asset Managers initiative (NZAM)

SDR Labelling:

Unlabelled with sustainable characteristics

Key Performance Indicators:

The Fund does not have a UK sustainable investment label as it does not have a sustainable objective as part of its investment objective. Despite not having a sustainable investment objective, when investing in companies, Troy integrates the analysis of sustainability characteristics into its investment decision-making. Troy also considers the steps companies are taking in relation to climate change mitigation, as set out in our Troy Climate Change Mitigation Policy.