Hugo Ure to head-up new Trojan Ethical Income fund


Troy Asset Management has announced that its Income & Growth Trust co-manager Hugo Ure will head up its new Trojan Ethical Income portfolio.

The vehicle, which launched on 6 January, aims to provide investors with an income as well as the potential for capital growth over the medium term.

The UK equity income fund will be relatively focused typically holding between 35 and 50 stocks and will not invest in firms involved in fossil fuels, pornography, tobacco and certain types of armaments.

The manager will also be able to hold up to 30 per cent in overseas stocks.

Ure joined Troy in January 2009 and is also assistant fund manager of the Trojan Income portfolio, which over the past five years has delivered a total return of 65 per cent versus a peer group average of 41 per cent for the period.

Ure said: “For some time we have been aware of the increasing demand from investors for a fund that eschews certain holdings that do not fit with their principles and objectives.

“The fund also adheres to a set of ethical criteria that we hope will resonate with a growing pool of investors.”

Commenting on the new launch Hargreaves Lansdown senior analyst Laith Khalaf says: “If you look at the Investment Association figures for ethical funds, they are at the highest level they have ever been in asset under management terms but I am reluctant to say there is a big growing demand given that the proportion of funds has remained pretty static over recent years. “

Net retail sales of ethical funds hit £715m in 2015, the highest on record according to the Investment Association, with funds under management reaching £10.7bn.

However as a percentage of industry assets, the sector stands at 1.2 per cent, exactly what it represented in 2005.

The new Troy fund comes with a minimum investment of £1,000 lump sum or £100 per month and carries an ongoing charge of 1.15 per cent for its ‘O’ share class.