| Asset Group | Asset Sub-Group | Investment Category |
| Equities | UK equity income | Core |
Why we recommend itThe fund has been managed by Catherine Stanley since 2009. She is primarily supported by 6 other managers/analysts, all of whom have input into the management of this fund. The team has other draws on its time but is experienced and stable. ESG screening is conducted by large team that is also responsible for engagement and voting. This team defines the investment universe for this product. The ESG screening excludes a large proportion the FTSE 350 and therefore plays to the experience of Catherine Stanley in the small-cap space. Investment research focuses on quality characteristics, considering strength of business, financial position, and quality of management as key elements in the assessment. For this strategy, the team is also looking for yield, and all of this is balanced against near term valuations. There is also a small allocation to corporate bonds, which is managed by the credit team within the firm. Its purpose is to enhance yield, but its allocation has been low (less than 5%) over the last couple of years. The growth and smid-cap biases from the screening come through in the final portfolio versus the mainstream UK Equity Income peer group, but they are not extreme and the yield from the fund is close to the peer group average. The slight, but persistent growth and smid-cap bias versus peers will impact returns over the shorter term, but over the longer term the manager has shown successful implementation of this strategy. The team is experienced and stable, with a highly experienced leader in Catherine Stanley. The fund is reasonably priced: The ‘2’ income share class levies annual ongoing charges of 0.89%. Ethical criteriaii ACE sustainable style: Considers. This means the fund carefully considers an often wide range of ethical and/ or environmental, social and governance (ESG) issues or themes when balancing positive and negative factors. Fund EcoMarket category: Ethical. Ethical Funds consider 'values based' issues like tobacco, gambling and armaments, typically alongside a wide range of environmental and social issues Some funds have strict screening criteria and avoid a significant nuber of companies. Others invest in most sectors, focusing on companies with the highest standards. Strategies vary. The risksEthical 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. | ||
| Information and data compiled to March 2023. | ||
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.
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