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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 2003 (previously at Co-operative Investment Management, which was purchased by RLAM in 2013).
Consistently superior performance: The fund has regularly 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 ‘C’ accumulation share class levies annual ongoing charges of 0.76% as at 19 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: 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 investment objective is to provide capital growth from a diverse portfolio of equities, mainly in the UK and in any economic sector. Investment will be limited to companies which are likely to benefit from measures taken to improve the environment, human welfare and the quality of life. The fund’s prospectus further states: “The core of the investment portfolio consists of shares in companies involved wholly or in part in the manufacture of products, industrial processes or the provision of services associated with improving the environment and the enhancement of human health and safety. In addition, investments may be made in companies considered likely to be medium to long term beneficiaries of changing attitudes towards a cleaner and safer environment, including those seen to be making above-average efforts to minimise environmental damage caused by their activities. “All companies are screened on an environmental basis, so as to exclude any whose operations are thought likely to cause significant damage to the environment. The scheme avoids investment in any company which has a significant amount of its business in countries where there is substantial disregard for human rights, in tobacco and tobacco-related products, in the manufacture, distribution or sale of products which have predominantly military applications or in products which involve experiments on animals, except for those conducted for the benefit of human or animal health. Unless there are exceptional mitigating circumstances, investments in companies involved in the generation of nuclear power are avoided.”
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.
Portfolio concentration: The fund has a concentrated portfolio compared with the UK FTSE All-Share index. As 31 March 2020 it invested in 41 stocks and the top 10 stocks represented 43.6% of assets under management.
|Information and data compiled to 30 April 2020.|
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.