|Asset Group||Asset Sub-Group||Investment Category|
Why we recommend it
We are adding the Fidelity Sustainable Asia Equity fund as a high conviction option on the ACE 40 fund list. The fund is managed by Dhananjay Phadnis who has worked at Fidelity since 2004 and has managed this fund since 2013. Support is provided by an extensive 62-member Asia –Pacific ex-Japan analyst team.
The manager favours quality firms run by strong management teams that can demonstrate consistent value creation and potential for ESG practice improvement. In addition to focusing on competitive advantages attention is also paid to valuations. The core of the portfolio will show quality growth characteristics but there will also be exposure to turnaround situations where a catalyst is evident.
The fund has an ESG-focused mandate, focusing on companies with higher probabilities of driving positive ESG outcomes and low ESG risk exposure. In addition, the portfolio has a higher than the benchmark exposure to carbon solutions, at 17.2%.
Sector and country weightings tend to stay well within 10 percentage points of the index. Overall, there is a slight bias to growth versus the MSCI AC Asia Ex Japan Index and sectors such as IT and financials tend to be favoured.Our positive view of the fund is based upon the experienced and savvy lead manager, the well-resourced analyst team, and a highly robust investment process.
ii ACE sustainable style: Considers. This means the trust 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: ESG Plus. This relates to funds that have a strong ESG strategy plus SRI/ethical/stewardship-related activity..
How the fund is managed: A formal sustainability mandate was adopted here in 2021, but this was largely a formalisation of the existing process. The investment process starts with hard exclusions, which contains firms with material exposure to weapons, tobacco, coal miners, and oil and gas extraction, as well as companies deemed to have "deteriorating" ESG momentum.
|Information and data compiled to October 2023.|
The information we provide in the ACE 40 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 40 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 40 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 40 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 40 investments list.