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Troy launches multi-asset ethical fund for Lyon's cub

Charlotte Yonge, Sebastian Lyon's assistant manager on £4.1 billion Trojan fund, handed reins of Trojan Ethical fund.

Troy launches multi-asset ethical fund for Lyon's cub

Troy Asset Management has launched a multi-asset ethical fund run by Charlotte Yonge (pictured), assistant manager to the firm’s founder Sebastian Lyon on the £4.1 billion Trojan fund.

The Trojan Ethical fund is intended to be a multi-asset version of the £97m Trojan Ethical Income fund, run by Troy’s head of responsible investment Hugo Ure and launched in 2016.

It will follow Troy’s more cautious house style, focusing on capital preservation with the aim of delivering returns with low volatility.

Asset allocation will be broadly in line with that of the Trojan fund, which since launch in 2001 has delivered a return of 230.3%, well ahead of FTSE All-Share index gains of 156.1%. In more volatile market conditions over the past six months it has also outperformed, falling by just 0.5% versus a drop in the index of 3.7%.

The Trojan Ethical Income fund meanwhile, has a yield of 3.2% but has underperformed the FTSE All-Share, with a return of 22% versus 30.7% from the index since launch. Though it has also outperformed amid the choppy markets of the last six months, down just 0.1% against a fall of 3.7% in the index. 

As with the ethical income fund Yonge's new fund will adhere to a set of ethical exclusion criteria.

The fund will avoid investing in equities which generate a significant portion of their turnover from alcohol, armaments, fossil fuels, gambling, high interest rate lending, pornography and tobacco. It will not invest in the stocks of countries subject to United Nations or European Union sanctions.

Trojan Ethical will also seek to minimise exposure to gold mined prior to 2012 – the date after which it can be ascertained that gold has been sourced in compliance with the London Bullion Market Association’s Responsible Gold Guidance.

Yonge said: ‘The Trojan Ethical fund will seek to provide a similar profile of returns to that of the Trojan fund. The fund will place strong emphasis on capital preservation and thus will not be constructed with reference to any particular benchmark.

'As well as deploying Troy’s approach to stock selection and asset allocation, the fund will adhere to a set of ethical exclusion criteria.’

Lyon (pictured) said: ‘Troy has long held that the sustainability and good governance of companies in which we invest is paramount when seeking to provide attractive long-term investment returns with low volatility and a strong degree of capital preservation.

‘The launch of the Trojan Ethical fund builds upon this ethos and presents an opportunity for investors who require a specific ethical framework to access the strength of Troy’s investment approach.’

This latest addition to Troy’s ethical offering comes at a time of expansion for the sector, with Investec having handed small cap star Matt Evan a sustainable fund in January. 

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Sebastian Lyon
Sebastian Lyon Average Total Return:
16/51 in Mixed Assets - Absolute Return GBP (Performance over 3 years)
Hugo Ure
Hugo Ure Average Total Return:
6/91 in Equity - UK Equity Income (Performance over 3 years)

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