| Asset Group | Asset Sub-Group | Investment Category |
| Fixed Income | Sterling bonds | Adventurous |
Why we recommend itTammie Tang assumed responsibility for the fund at the end of June 2022 ahead of the planned retirement of Simon Bond in March 2023. Bond was the original architect of the fund and hired Tang to work alongside him 10 years ago, appointing her as the fund’s deputy manager in October 2017. Following his retirement, Bond will continue as a member of the fund’s established social advisory committee. Tang will be supported by a further two deputy managers as well as the wider well-resourced team of investment grade analysts and the responsible investment analyst team. The fund seeks to deliver a corporate bond like return but with a positive impact and has a twin objective of achieving both a financial return and delivering a social impact. The financial strength of all investments is key and is the starting point for consideration for inclusion in the portfolio. In addition to this, every investment is evaluated for its social good characteristics with the portfolio seeking to have a minimum exposure of 80% to UK outcomes. The portfolio is constructed from the bottom up and from a duration, yield and ratings perspective has a profile which is very similar to that of its benchmark, the BofA Merrill Lynch 1-10 Year Sterling Non-Gilt Index. Over the long term we would expect the fund to deliver benchmark-like returns and for the fund’s quality bias to lead to outperformance during periods of market weakness. The fund offers a unique approach to sustainable investing, both in terms of evidence gathering and influencing how the issuers can do more through engagement. The team is well-resourced and while Bond’s departure is a loss to the fund, his continued involvement via the social advisory committee is a positive. Tang’s long tenure, involvement and commitment to the fund should provide welcome continuity.
The fund offers a unique approach to sustainable investing, and a key part of the approach is through engagement, both in terms of evidence gathering and influencing how the issuers can do more. While Bond’s departure is a loss to the fund, his continued involvement via the social advisory committee is a positive and Tang’s long tenure, involvement and commitment to the fund, should provide continuity that helps mitigate this loss. Tang will also benefit from the direct support of two experienced deputy managers and the well-resourced experienced team of investment analysts, as well as the additional support of the responsible investment team. Ethical criteriaii ACE sustainable style: Embraces. This means the fund adopts a targeted or proactive approach to ethical investing, in an effort to make a positive impact and/or environmental outcomes. Fund EcoMarket category: Social Themed. These funds typically focus on ‘people issues’ (such as employment and basic necessities of life). Social themed fund managers focus significantly on societal benefits when analysing companies for investment. The risksEthical screening: In certain market conditions the performance of the fund may differ significantly from others in the peer group that do not invest primarily in bonds issued by entities engaged in socially beneficial activities. | ||
| Information and data compiled to March 2023. | ||
Risk warnings
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