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ii ACE 40

Ethical investing

ii ACE 40 investments

The UK's first rated list of ethical investments. Our impartial selections can help you make the right choice for you, for a flat fee of £9.99 a month.

view ii ACE 40 investments

The ii ACE 40 makes investing ethically easy.

From our list of more than 140 ethical investment options, we have picked out what we believe to be the 40 best-in-class funds, investment trusts and exchange-traded funds (ETFs). These offer the highest quality across a wide variety of markets.

You can find out how each one attained ii rated status by reading our Methodology and FAQs.

Our ii ACE 40 selections are:

  • High-quality companies chosen from the widest possible range of ethical investments
  • From different sectors and regions, with risk options from core to adventurous
  • Designed to suit ALL investors
  • Chosen for their potential to deliver strong financial performance
  • Managed in a genuinely ethical manner – there is no ‘greenwashing’ of information that aims to mislead about the environmental credentials of a company

Past performance is not a guarantee of future performance.

The ACE 40 list offers a filtered selection of collective investment vehicles for all investors, new or experienced. We aim to provide a menu of high-quality choices across a broad variety of markets and investment types.

Moira O'Neill
Head of Personal Finance
at interactive investor

Tools

Ethical growth portfolio – designed to give you an idea about how you can build your own balanced ethical portfolio.

How to use the ii ACE 40

The ii ACE 40 is sorted into asset groups, investment categories and ACE ethical styles.

Asset groups include global equities and fixed-income options, while the investment categories suit the type of investor you are. These range from low cost – for those looking to control what they are paying – to smaller company and adventurous, for investors keen to add higher-risk options to a balanced portfolio.

The investment categories follow a similar structure to our Super 60, but the limited range of ethical options available means some categories are currently blank. We plan to add extra options over time as new ethical investments are launched or build up a good track record of performance.

ACE ethical styles explained

Each fund is given an ACE ethical style. Where a fund’s manager adopts more than one, we use the strongest that applies:

lineAvoids

Funds that focus on simply excluding companies, sectors or specific business practices.

lineConsiders

Funds that carefully consider an often wide range of ethical and/or environmental, social and governance (ESG) issues or themes when balancing positive and negative factors.

lineEmbraces

Funds that focus on companies delivering positive social and/or environmental outcomes.

9 October

ii ACE 30 ethical fund review: Q3 2020

Here’s how interactive investor’s selection of ethical funds performed during a turbulent third quarter.

by Liberty Godfrey

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. The information we provide in the ACE investments list does not constitute a personal recommendation. You should ensure that any investment decisions you make are suitable for your personal circumstances and that the ethical style of the investment reflects your personal beliefs. Past performance of the underlying constituents is not a guarantee of future performance. Remember, the value of investments and any income from them can fall as well as rise, so you could get back less than you invest.

 

ii ACE 40 investments

Narrow the list using the filters below or download our handy, printable guide.

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Display ii ACE 40 investments by:

asset group  investment category  ii ACE ethical style

 

Asset Groups

 

ii ACE 40 Equities

UK equities

ii ACE 40 Fixed Income

ii ACE 40 Alternatives

ii ACE 40 Equities

UK equities

Name

Investment Category

ii ACE ethical style

Selection rationale

Invest now

L&G Ethical I Acc Low cost Considers find out more trade
Royal London Sustainable Leaders C Acc Core Considers find out more trade
Aegon Ethical Equity Adventurous Avoids find out more trade
Liontrust UK Ethical 2 Net Acc Adventurous Considers find out more trade

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UK equity income

Name

Investment Category

ii ACE ethical style

Selection rationale

Invest now

BMO Responsible UK Income 2 Acc Core Considers find out more trade
Janus Henderson UK Responsible Income Core Considers find out more trade
Unicorn UK Ethical Income B Acc Smaller company Avoids find out more trade
Trojan Ethical Income X Acc Adventurous Avoids find out more trade

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Global equities

Name

Investment Category

ii ACE ethical style

Selection rationale

Invest now

UBS ETF MSCI World SRI USD A dis GBP Low cost Avoids find out more trade
BMO Responsible Global Equity 2 Acc Core Considers find out more trade
Baillie Gifford Global Stewardship Core Considers find out more trade
Montanaro Better World Smaller company Embraces find out more trade
Impax Environmental Markets Ord  Adventurous Embraces find out more trade
Baillie Gifford Positive Change Adventurous Embraces find out more trade
Fundsmith Sustainable Equity I Acc Adventurous Considers find out more trade

  The classification of this ACE 40 fund has changed. Find out more

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Global equity income

Name

Investment Category

ii ACE ethical style

Selection rationale

Invest now

Baillie Gifford Responsible Global Equity Income Core Considers find out more trade

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Emerging markets

Name

Investment Category

ii ACE ethical style

Selection rationale

Invest now

iShares MSCI EM SRI ETF USD Acc GBP Low cost Avoids find out more trade
Stewart Investors Glbl EM Sust B Acc GBP Core Considers find out more trade

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Asian equities

Name

Investment Category

ii ACE ethical style

Selection rationale

Invest now

UBS ETF MSCI Pacific SRI USD A dis GBP Low cost Avoids find out more trade
Pacific Assets Ord Core Considers find out more trade
Impax Asian Environmental Markets IRL X Adventurous Embraces find out more trade

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European equities

Name

Investment Category

ii ACE ethical style

Selection rationale

Invest now

Vanguard SRI European Stock GBP Acc Low cost Avoids find out more trade
Liontrust Sust Fut Eurp Gr 2 Net Acc Core Considers find out more trade
ASI Europe ex UK Ethical Equity Adventurous Considers find out more trade

  EdenTree Amity European Fund has been removed. Find out more

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US equities

Name

Investment Category

ii ACE ethical style

Selection rationale

Invest now

iShares MSCI USA SRI ETF USD Acc GBP Low cost Avoids find out more trade
Brown Advisory US Sust Gr GBP B Inc Core Considers find out more trade

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ii ACE 40 Fixed Income

Global bonds

Name

Investment Category

ii ACE ethical style

Selection rationale

Invest now

Lyxor Green Bond Low cost Embraces find out more trade
PIMCO GIS Global Bond ESG Instl GBPH Inc Core Considers find out more trade

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Sterling bonds

Name

Investment Category

ii ACE ethical style

Selection rationale

Invest now

Liontrust Sust Fut Corp Bd 2 Grs Inc Core Considers find out more trade
Royal London Ethical Bond Core Avoids find out more trade
Rathbone Ethical Bond I Acc Income Considers find out more trade
Threadneedle UK Social Bd Z Grs Acc£ Adventurous Embraces find out more trade

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ii ACE 40 Alternatives

Specialist

Name

Investment Category

ii ACE ethical style

Selection rationale

Invest now

iShares Global Clean Energy ETF USD Dist GBP Low cost Embraces find out more trade
FP Foresight Global Real Infrastructure Core Embraces find out more trade
VT Gravis Clean Energy Income C GBP Acc Income Embraces find out more trade
Syncona Ord Adventurous Embraces find out more trade

The classification of this ACE 40 fund has changed. Find out more

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Mixed asset

Name

Investment Category

ii ACE ethical style

Selection rationale

Invest now

BMO Sustainable Universal MAP Cautious Low Cost Considers find out more trade
BMO Sustainable Universal MAP Balanced Low Cost Considers find out more trade
BMO Sustainable Universal MAP Growth Low Cost Considers find out more trade
Royal London Sustainable Div C Acc Core Considers find out more trade
Royal London Sustainable World Adventurous Considers find out more trade
Climate Assets B GBP Acc Adventurous Considers find out more trade

  AXA Ethical Distribution Fund has been removed. Find out more

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 Removal of AXA Ethical Distribution Fund

Following our annual review, we have decided to remove the fund from our ACE 40 List. The fund has had a disappointing period of performance relative to its peers and we, unfortunately, have lost conviction in its ability to meet its long-term performance objective. The portfolio only allocates between UK Gilts and UK equities with a bias to mid and small-cap stocks, which will significantly impact the fund’s absolute and relative performance.

(26 October 2020)

 Impax Environmental Markets Trust

The decision to reclassify Impax Environmental Markets Trust from Global Equity/Smaller Company to Global Equity/Adventurous is in-line with our stated methodology. We have conducted a careful review of the risks associated with the trust, including the style of the manager and portfolio positioning as well as assessment of the sector. We maintain our conviction in the manager and his approach focusing on companies delivering environmental solutions but due to the specialist nature of the strategy Adventurous risk category is more appropriate.

(26 October 2020)

 Removal of EdenTree Amity European Fund

While we continue to have a high regard for the firm and the team, the fund has been struggling to achieve its performance objectives in recent years, and we have therefore decided to remove it from our ACE 40 List. The contrarian and value style of the fund has contributed to the fund’s comparatively disappointing performance against peers. We are also conscious of the possibility of longer recovery periods for value investing.

(26 October 2020)

 Reclassification of Syncona Limited

The decision to reclassify Syncona Limited from Specialist/Smaller Company to Specialist /Adventurous is in-line with our stated methodology. We have conducted a careful review of the risks associated with the trust, including the style of the manager and portfolio positioning as well as assessment of the sector. We maintain our conviction in the manager and his approach focusing on life science companies but due to the specialist nature of the strategy Adventurous risk category is more appropriate.

(26 October 2020)

Risk warnings

The information we provide in the ACE 40 investments list does not constitute a "personal recommendation". You should ensure that any investment decisions you make are suitable for your personal circumstances and that the ethical style of the investment reflects your personal beliefs.

Past performance of the underlying constituents is not a guarantee of future performance. Remember, the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest.

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.

If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor.

Any changes to the ii ACE 40 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Review.

Details of all 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 hold shares in companies mentioned in the ii ACE 40 investments list, which could create a conflict of interest. Any member of staff intending to complete some 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 this ii ACE 40 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 list. This is to avoid personal interests conflicting with the interests of the recipients of this ii ACE 40 investments list.

Not yet an ii customer?

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£9.99 a month covers you for multiple accounts (open a SIPP by 30 November and pay no SIPP fee until June 2021. Then just £10 a month extra).

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