ii ACE 40 performance review: Q1 2026
Here’s how interactive investor’s sustainable funds list performed in the three months to the end of March.
17th April 2026 08:52
Performance of the funds on the ACE 40 list ranged between +14.78% and -10.93% over the quarter. Key drivers of positive returns were exposure to alternative energy, utilities and value equities. Weakness was seen from quality-growth stocks.
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Over the quarter, strength was seen from all the funds connected to alternative energy. Polar Capital Smart Energy I Acc GBPposted the highest return at 14.78%. The fund is managed by the experienced Thiemo Lang whose investment process focuses on bottom-up selection of quality-growth companies that trade at reasonable valuations and provide solutions that enable the decarbonization and electrification of the global energy sector. High exposure to the technology sector is a feature. Notable stock successes over the quarter included Lumentum Holdings Inc (NASDAQ:LITE), Aixtron SE (XETRA:AIXA) and 5N Plus Inc (TSE:VNP).
The iShares Global Clean Engy Trns ETF $Dist GBP (LSE:INRG), which tracks the S&P Global Clean Energy Transition index, posted a return of 9.91% and saw significant positive contributions from stocks such as SolarEdge Technologies Inc (NASDAQ:SEDG), Nyocor and GCL System Integration Technology.
Finally, the TM Gravis Clean Energy Income C GBP Acc fund produced a 6.47% return. It aims to provide an income in the region of 4.5% and primarily invests in closed-ended investment companies and yield companies involved in the provision, storage and consumption of clean energy. It therefore provides relative defensive exposure to the clean energy space.
iShares MSCI EM SRI ETF USD Acc GBP (LSE:SUES)tracks the MSCI EM SRI Select Reduced Fossil Fuel index and produced a return of 1.36%, with a strong contribution from its relatively high exposure to Taiwan.
Schroder Global Sust Val Eq Z Cap was the final fund on the top five performers list, benefiting from its established team process that seeks to identify contrarian, recovery ideas with strong financials. The resulting value style bias helped produce a positive return of 1.07%.
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Moving to the bottom five performers on the ACE 40 list, Brown Advisory US Sust Gr GBP B Inc posted the weakest returns with a 10.93% drop. The managers of this fund incorporate sustainable investing traits into their long-term fundamental research process, which focuses on identifying sustainable business advantages.
This style bias has been a headwind, while attribution versus the Morningstar US Large-Mid Growth Index shows stock selection as the main negative, particularly within IT and industrials. Although the recent weakness has dented the longer-term track record, in the past the fund has shown its ability to outperform the mainstream index and the Morningstar US Large-Mid Growth Index.
M&G European Sustain Paris Aligned I Acc also suffered over the quarter with a return of -7.65%. The underlying stock selection approach employed here has a focus on companies showing sustainable competitive advantages. This results in a quality-growth bias, although the concentrated portfolio can mean stock selection can overcome style biases at times.
Again, the style bias has been a headwind, while attribution versus the Morningstar DM Eur xUK TME Index shows weakness in stock selection within the communication services and healthcare sectors. Despite short-term weakness, the fund remains ahead of its peer group average over the medium and longer term.
UBS MSCI UK IMI Sclly Rspnb ETF GBP dis (LSE:UKSR)tracks the MSCI UK IMI Extended SRI Low Carbon Select 5% Issuer Capped index and produced a return of -6.30%. The exchange-traded fund (ETF) underperformed the mainstream FTSE All-Share index due to underweights to commodities and utilities which reflect the SRI (socially responsible investing) restrictions.
The next fund on the list is also a UBS passive ETF. UBS MSCI World Socially Rspnb ETF USDdis GBP (LSE:UC44) saw a loss of 6.07%. The fund tracks the MSCI World SRI Low Carbon Select 5% Issuer Capped TR index. Underperformance versus the mainstream Morningstar Global TME index primarily reflected the underweight to the energy sector.
The final fund on the bottom five performers list is Janus Henderson Global Sust Eq I Acc, another quality-growth biased fund. This and the lack of exposure to the strongly performing areas of the market led to a 4.57% loss over the quarter, but this was still slightly ahead of the passively managed global fund,UBS (Lux) FS MSCI World Socially Responsible UCITS ETF.
Top five ACE 40 funds in Q1 2026
| Group/Investment | 3 months (%) | 1 year | 3 years | 5 years |
| Polar Capital Smart Energy I Acc GBP | 14.78 | 78.28 | 62.96 | |
| iShares Global Clean Engy Trns ETF $Dist GBP (LSE:INRG) | 9.91 | 56.24 | -12.53 | -18.47 |
| TM Gravis Clean Energy Income C GBP Acc | 6.47 | 12.82 | -15.62 | -11.28 |
| iShares MSCI EM SRI ETF USD Acc GBP (LSE:SUES) | 1.36 | 28.37 | 28.99 | 18.51 |
| Schroder Global Sust Val Eq Z Cap | 1.07 | 18.42 | 40.79 | 53.81 |
Source: Morningstar - Total Return for OE / Market Return for CE - (GBP) to 31/03/2026. Past performance is not a guide to future performance.
Bottom five ACE 40 funds in Q1 2026
| Group/Investment | 3 months (%) | 1 year | 3 years | 5 years |
| Janus Henderson Global Sust Eq I Acc | -4.57 | 6.66 | 28.72 | 37.28 |
| UBS MSCI World Socially Rspnb ETF USDdis GBP (LSE:UC44) | -6.07 | 9.61 | 34.28 | 49.58 |
| UBS MSCI UK IMI Sclly Rspnb ETF GBP dis (LSE:UKSR) | -6.30 | 9.75 | 29.03 | 30.76 |
| M&G European Sustain Paris Aligned I Acc | -7.65 | 4.63 | 24.01 | 45.23 |
| Brown Advisory US Sust Gr GBP B Inc | -10.93 | -1.97 | 22.70 | 38.53 |
Source: Morningstar - Total Return for OE / Market Return for CE - (GBP) to 31/03/2026. Past performance is not a guide to future performance.
Top five ACE 40 funds over five years
| Group/Investment | 3 months (%) | 1 year | 3 years | 5 years |
| EdenTree Sustainable Eurp Eq B Inc | -3.78 | 18.46 | 40.43 | 64.54 |
| -3.11 | 11.04 | 31.29 | 57.12 | |
| Schroder Global Sust Val Eq Z Cap | 1.07 | 18.42 | 40.79 | 53.81 |
| Wellington Global Stewards GBP N Acc | -2.64 | 6.59 | 26.17 | 52.07 |
| UBS MSCI World Socially Rspnb ETF USDdis GBP (LSE:UC44) | -6.07 | 9.61 | 34.28 | 49.58 |
Source: Morningstar - Total Return for OE / Market Return for CE - (GBP) to 31/03/2026. Past performance is not a guide to future performance.
Bottom five ACE 40 funds over five years
| Group/Investment | 3 months (%) | 1 year | 3 years | 5 years |
| PIMCO GIS Global Bond ESG Instl GBPH Inc | -1.53 | 3.32 | 13.12 | 2.11 |
| Liontrust Sust Fut Corp Bd 2 Grs Inc | -2.32 | 4.29 | 17.43 | -0.96 |
| Amundi Glb Aggt Green Bd ETF Acc GBP (LSE:CLIM) | -0.76 | 4.46 | 6.97 | -8.08 |
| TM Gravis Clean Energy Income C GBP Acc | 6.47 | 12.82 | -15.62 | -11.28 |
| iShares Global Clean Engy Trns ETF $Dist GBP (LSE:INRG) | 9.91 | 56.24 | -12.53 | -18.47 |
Source: Morningstar - Total Return for OE / Market Return for CE - (GBP) to 31/03/2026. Past performance is not a guide to future performance.
Most-bought ACE 40 funds in Q1 2026
| iShares Global Clean Engy Trns ETF $Dist GBP (LSE:INRG) |
| Royal London Sustainable World C Acc |
| Polar Capital Smart Energy I Acc GBP |
| Royal London Sustainable Leaders C Acc |
| Schroder Global Sust Val Eq Z Cap |
Most-sold ACE 40 funds in Q1 2026
Changes to the ACE 40 list (under review/developments)
None in Q1.
ACE 40 videos in Q1 2026
Royal London Sustainable Leaders
Royal London Sustainable World
The ACE 40 investments list is selected and managed by our independent research partner Morningstar and reviewed by our in-house investment experts to help narrow down the wide choice of available investment products. We believe it represents a set of high-quality choices, across different asset classes, regions, and investment types.
However, you should note that the selection of ACE 40 investments list is not a ‘personal recommendation’. This means we have not assessed your investment knowledge, your financial situation (including your ability to bear losses), your investment objectives, your risk tolerance, or your sustainability preferences.
You should ensure that any investment decisions you make are suitable for your personal circumstances, and if you are unsure about the suitability of a particular investment or think you need a personal recommendation, you should speak to a suitably qualified financial adviser.
The past performance of an investment is not a reliable indicator of future results, and ii does not guarantee or predict the future performance of the ACE 40 investments list as a whole or the constituent investments.
Risk Warning(s)
The value of your investments may go down as well as up. You may not get back all the money that you invest.
Investing in emerging markets involves different risks from developed markets, in many cases the risks are greater.
The value of international investments is affected by currency fluctuations which might reduce their value in sterling.
Disclosure(s)
All funds listed are the Accumulation version of the fund, where available, where any income generated within the fund is reinvested automatically. Income versions of these funds may also be available for investors looking for income generated to be paid directly into their account.
Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab.
Any changes to the ACE 40 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Review.
Details of all ACE 40 recommendations issued by ii during the previous 12-month period can be found here.
ii adheres to a strict code of conduct. Members of ii staff may have holdings in one or more ACE 40 investments, which could create a conflict of interest. Any member of staff involved in the development of research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.
In addition, staff involved in the production of the ACE 40 investments list are subject to a personal account dealing restriction. This prevents them from placing a transaction in the specified instrument(s) for five working days before and after an investment is included or amended and made public within the ACE 40 investments list. This is to avoid personal interests conflicting with the interests of investors in the ACE 40 investments.