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WHY WE RECOMMEND IT
Experienced and well-resourced manager: Peter Michaelis, head of sustainable investments at Liontrust, has managed this fund since 2000 (previously at Alliance Trust Investments and Aviva Investors). He was joined by co-manager Neil Brown in 2013.
Consistently superior performance: The fund has consistently outperformed the average return of funds in the Investment Association’s UK All Companies sector. Cumulative long-term returns are very strong compared with the sector average. Annualised risk-adjusted returns are in the first quartile of the sector peer group over three years.
The fund is reasonably priced: The ‘2’ accumulation share class levies annual ongoing charges of 0.83% as at 12 February 2020.
ii ACE ethical 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: 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 fund aims for long term capital growth and will invest in the shares of a broad range of UK companies, based on the fund manager's view of their long-term return prospects. It will invest only in companies that meet Liontrust’s ethical requirements and which will benefit from improvements in environmental standards and a shift towards a more sustainable economic system.
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 volatility profile is slightly higher than the average fund in the peer group.
Portfolio concentration: The fund has a concentrated portfolio compared with the UK FTSE All-Share index. As at 30 March 2020 it invested in 41 stocks and the top 10 stocks represented 43.8% of assets under management.
|Information and data compiled to 30 April 2020.|
News and analysis
Coronavirus ii ACE 30 update: Liontrust UK Ethical Fund
interactive investor's analysts bring you an urgent update on this ii ACE 30 rated ethical investment.
by Dzmitry Lipski
Why investors should look beyond the FTSE 100 index
Investors should take a fresh look at the UK all companies sector, argues Cherry Reynard.
by Cherry Reynard
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