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ii ACE 30 - AXA Ethical Distribution Fund

ii ACE 30 investments:
AXA Ethical Distribution Fund

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Asset Group Asset Sub-Group Investment Category
Alternatives Mixed asset Income
 

WHY WE RECOMMEND IT

Respectable performance with income focus: The fund has slightly outperformed the average return of funds in the Investment Association’s Mixed Investment 20-60% Shares sector in the medium term. It also aims to generate a growing income.

The fund is reasonably priced: The ‘Z’ income share class levies annual ongoing charges of 0.77% as at 7 August 2019.

 

ETHICAL CRITERIA

ii ACE ethical style: Avoids. This means the fund simply screens out specific sectors considered to be unethical, or stocks whose environmental, social and governance (ESG) scores are below a certain threshold.

Fund EcoMarket category: Negative Ethical. This relates to funds that use clear, sometimes strict and extensive, negative ‘ethical’ screens as their core strategy. They may avoid a significant number of areas on ethical grounds (e.g. armaments, tobacco, gambling) or may focus on avoiding a smaller number of areas.

How the fund is managed: The aim of this fund is to achieve growing income with some prospects for capital growth over the medium to long term. The fund's typical asset mix would range between 50-60% investment in shares and 40-50% in UK government bonds and cash. In accordance with the fund manager's ethical screening criteria, the fund invests in companies identified in relation to their approach to: environmental issues (including biodiversity, ozone depleting substances, climate change, fossil fuels, energy intensive industries, mining and quarrying, nuclear power, pollution and sustainable timber); human rights violations; and, other corporate responsibility issues (including animal testing, gambling, intensive farming, military sales, pornography and adult entertainment services, activities deemed detrimental to developing economies and tobacco sale and production).

 

THE RISKS

Ethical screening: In certain market conditions the performance of the fund may differ significantly from others in the peer group that do not exclude specific sectors or companies from a comparable investment universe.

Above-average volatility: The fund’s performance over three years is more volatile than the average fund in the peer group.

 
Information and data compiled in September 2019.

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Risk warnings

The information we provide in the ACE 30 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 30 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Outlook.

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 30 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 30 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 30 investments list.