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ii ACE 30 - Royal London Sustainable Diversified Fund

Ethical investing

ii ACE 30 investments:
Royal London Sustainable Diversified Fund

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

WHY WE RECOMMEND IT

Experienced and well-resourced manager: Mike Fox, head of sustainable investments at Royal London Asset Management, has managed this fund since launch in 2012 (previously at Co-operative Investment Management, which was purchased by RLAM in 2013).

Consistently superior performance: The fund consistently outperforms the average return of funds in the Investment Association’s Mixed Investment – 20-60% Shares 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 ‘C’ accumulation share class levies annual ongoing charges of 0.77% as at 30 June 2019.

 

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: Sustainability Themed. This relates to funds that focus on sustainability related issues and opportunities as part of their investment strategy, often alongside ethical criteria. Their focus is often around longer term societal and environmental trends.

How the fund is managed: The fund’s prospectus states: “The current ethical investment policy prevents investment in companies that cause significant environmental damage and those which derive a material proportion of business from countries where human rights are disregarded, or are involved in tobacco production, military applications, products tested on animals (other than for human or animal health), animal fur products, pornography, irresponsible gambling, irresponsible drinking, worker exploitation or exploitative consumer practices.” In addition, the fund “will avoid investing in companies that generate nuclear power, have unacceptable corporate governance, mismanage social, ethical and environmental risk, produce or sell torture equipment, produce or sell landmines, or are involved in the production of nuclear weapons”.

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 typically holds a higher proportion of equities to bonds in its portfolio. This means returns can be 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.