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ii ACE 30 - Liontrust UK Ethical Fund

Ethical investing

ii ACE 30 investments:
Liontrust UK Ethical Fund

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Asset Group Asset Sub-Group Investment Category
Equities UK equities Adventurous
 

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 0.86% as at 1 September 2018.

 

ETHICAL CRITERIA

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 (eg 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.

 

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 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 28 June 2019 it invested in 44 stocks and the top 10 stocks represented 45% of assets under management.

 
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.