CT UK Social Bond Fund keeps place in ii ACE 40

interactive investor has retained the fund on the ii sustainable ACE 40-rated list after a formal review.

interactive investor, the UK’s second-largest platform for private investors, has retained CT UK Social Bond on the ii sustainable ACE 40-rated list after a formal review. 

The fund’s manager, Simon Bond, announced he will retire in 2023, and would subsequently take a step back from fund management responsibilities on 30 June 2022. As a result, the ii ACE 40 rated fund was placed under formal review by Morningstar on behalf of interactive investor in May this year.

ii-rated fund and model portfolios are selected and managed by ii’s independent research partner Morningstar and reviewed by ii’s in-house investment experts.

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Dzmitry Lipski, Head of Funds Research, interactive investor, explains: “It is encouraging to see that despite stepping back from the fund’s management, social bond pioneer Simon Bond will continue his involvement via the fund’s established social advisory committee. Together with Morningstar, we are also confident in Bond’s replacement, Tammie Tang, whose management, supported by two deputy managers, is likely to provide strong continuity for the fund.”

Lipski continues: “Tammie Tang worked alongside Bond for 10 years on the fund and is well placed to continue implementing the fund’s unique investment approach, which is what earned the funds’ position on our ACE 40 list in the first place. Tang will also be supported by the wider well-resourced team of analysts and the responsible investment analyst team.

“A key part of the fund’s approach, which aims to deliver a corporate bond-like return but with a positive social impact, is through engagement – and this is both in terms of evidence gathering and influencing how the issuers can do more to drive positive change.

“Our ACE 40 list is designed to give a filtered selection of collective investment vehicles for all investors – whether they are new to the world of investing or much more experienced, and therefore we ensure our recommendations are high quality and span a variety of markets and investment types.

“The demand for ethical investment products also remains strong, so funds like this one - which has a twin objective of achieving both a financial return and delivering a social impact – could look particularly interesting to investors.”

interactive investor is now producing more content on bonds and money market funds. 

Bond markets, sensitive to high inflation and interest rate hikes, have fallen, meaning that yields have risen. ii wants to ensure there is relevant, engaging, and responsible content to guide investors through the often-complicated world of fixed income. 

ii’s experienced team of in-house experts is publishing a series of editorial content, as well as specific podcast episodes, infographics, and detailed analysis, tailored towards helping investors navigate the fixed income market. 

On 17 August, ii published its first ‘Benstead on Bonds’ column, which is just one of ii’s immense suite of tools for investors.

interactive investor’s flagship rated list, Super 60, turned three years old this year, and its sustainable sister list, ACE 40, turned two. ii has been evolving its rated products and handed over the day care of its rated investments to Morningstar’s Manager Selection Services Group in January of this year.

The collation, production, and maintenance of the platform’s select lists (Super 60, ACE 40, Quick-start Funds, model portfolios and Investment Pathways) have been outsourced to Morningstar Manager election Services Group, further cementing ii’s unconflicted business model.  However, the rated list and model portfolio methodology is still owned by ii, and the recommendations will continue to be made from the whole funds, investment trust and ETF universe.