Interactive Investor

ii ACE 40 investments

The UK's first rated list of ethical investments. Our impartial selections can help you make the right choice for you, for a flat fee of £9.99 a month.


ethical-investing

The ii ACE 40 makes investing ethically easy.

From our list of more than 140 ethical investment options, we have picked out what we believe to be the 40 best-in-class funds, investment trusts and exchange-traded funds (ETFs). These offer the highest quality across a wide variety of markets.

You can find out how each one attained ii rated status by reading our Methodology and FAQs.

What is the ii ACE 40?

Our ii ACE 40 selections are:

  • High-quality companies chosen from the widest possible range of ethical investments
  • From different sectors and regions, with risk options from core to adventurous
  • Designed to suit ALL investors
  • Chosen for their potential to deliver strong financial performance
  • Managed in a genuinely ethical manner – there is no ‘greenwashing’ of information that aims to mislead about the environmental credentials of a company

Past performance is not a guarantee of future performance.

The ACE 40 list offers a filtered selection of collective investment vehicles for all investors, new or experienced. We aim to provide a menu of high-quality choices across a broad variety of markets and investment types.

Tools

Ethical growth portfolio – designed to give you an idea about how you can build your own balanced ethical portfolio.

How to use the ii ACE 40

The ii ACE 40 is sorted into asset groups, investment categories and ACE ethical styles.

Asset groups include global equities and fixed-income options, while the investment categories suit the type of investor you are. These range from low cost – for those looking to control what they are paying – to smaller company and adventurous, for investors keen to add higher-risk options to a balanced portfolio.

The investment categories follow a similar structure to our Super 60, but the limited range of ethical options available means some categories are currently blank. We plan to add extra options over time as new ethical investments are launched or build up a good track record of performance.

ACE ethical styles explained

Each fund is given an ACE ethical style. Where a fund’s manager adopts more than one, we use the strongest that applies:

Avoids.

Funds that focus on simply excluding companies, sectors or specific business practices.

Considers.

Funds that carefully consider an often wide range of ethical and/or environmental, social and governance (ESG) issues or themes when balancing positive and negative factors.

Embraces.

Funds that focus on companies delivering positive social and/or environmental outcomes.

All funds listed are the Accumulation version of the fund, where available, where any income generated within the fund is reinvested automatically. Income versions of these funds may also be available for investors looking for income generated to be paid directly into their account. The information we provide in the ACE 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.

ii ACE 40 investments

Narrow the list using the filters below or download our handy, printable guide.

Display ii ACE 40 investments by:

Asset group | Investment Category | ii Ethical style

ii ACE ethical styles

ii ACE 40 - Avoids

Funds that focus on excluding companies, sectors or specific business practices in line with the published fund criteria that may focus on ethical, social and/or environmental issues.

Funds in this group vary significantly. Some will exclude only a small number or companies (for example perhaps only a small percent of their possible universe), others have extensive exclusions (50% or more of their possible universe). The most common areas of exclusion are tobacco companies, weapons manufacturers and companies that breach internationally agreed standards - some include multiple additional issues. Passive funds typically fall into this group, generally with limited exclusions.

Name

Asset group

Investment category

Selection rationale

Invest now

iShares MSCI EM SRI ETF USD Acc GBPEquities 
Emerging markets
Low costfind out moretrade
iShares MSCI USA SRI ETF USD Acc GBPEquities 
US equities
Low costfind out moretrade
Trojan Ethical Income Fund O AccEquities 
UK equity income
Adventurousfind out moretrade
UBS ETF MSCI Pacific SRI USD A dis GBPEquities 
Asian equities
Low costfind out moretrade
UBS ETF MSCI World SRI USD A dis GBPEquities 
Global equities
Low costfind out moretrade
Unicorn UK Ethical Income B AccEquities 
UK equity income
Smaller companyfind out moretrade
Vanguard SRI European Stock GBP AccEquities 
European equities
Low costfind out moretrade
Royal London Ethical BondFixed income
Sterling bonds
Corefind out moretrade
Aegon Ethical EquityEquities
UK equities
Adventurousfind out moretrade

how to use the table →

ii ACE 40 - Considers

Funds that actively consider ethical and/or environmental, social and governance (ESG) issues as part of their investment strategies.

Funds in this group vary significantly but typically consider multiple positive and negative issues when deciding where to invest - with many emphasising positive stock selection. Most avoid controversial business practices and focus on sectors, themes and activities that the managers believe to be both financially sound and ethically, socially and/or environmentally beneficial. Many funds also have responsible ownership (stewardship) strategies and aim to improve companies' environmental and/or social practices.

Name

Asset group

Investment category

Selection rationale

Invest now

BMO Responsible Global Equity 2 AccEquities 
Global equities
Corefind out moretrade
BMO Responsible UK Income 2 AccEquities 
UK equity income
Corefind out moretrade
Brown Advisory US Sust Gr GBP B IncEquities 
US equities
Corefind out moretrade
Climate Assets B GBP AccAlternatives 
Mixed asset
Adventurousfind out moretrade
Fundsmith Sustainable Equity I AccEquities 
Global equities
Adventurousfind out moretrade
Liontrust Sust Fut Corp Bd 2 Grs IncFixed Income 
Sterling bonds
Corefind out moretrade
Liontrust Sust Fut Eurp Gr 2 Net AccEquities 
European equities
Corefind out moretrade
Liontrust UK Ethical 2 Net AccEquities 
UK equities
Adventurousfind out moretrade
Pacific Assets OrdEquities 
Asian equities
Corefind out moretrade
PIMCO GIS Global Bond ESG Instl GBPH IncFixed Income 
Global bonds
Corefind out moretrade
Rathbone Ethical Bond I AccFixed Income 
Sterling bonds
Adventurousfind out moretrade
Royal London Sustainable Div C AccAlternatives 
Mixed asset
Corefind out moretrade
Royal London Sustainable Leaders C AccEquities 
UK equities
Corefind out more trade
Stewart Investors Glbl EM Sust B Acc GBPEquities 
Emerging markets
Corefind out moretrade
BMO Sustainable Universal MAP CautiousAlternatives
Mixed Asset
Low Costfind out moretrade
BMO Sustainable Universal MAP BalancedAlternatives
Mixed Asset
Low Costfind out moretrade
BMO Sustainable Universal MAP GrowthAlternatives
Mixed Asset
Low Costfind out moretrade
Baillie Gifford Responsible Global Equity IncomeEquity
Global equity income
Corefind out moretrade
Royal London Sustainable WorldAlternatives
Mixed Asset
Adventurousfind out moretrade
Baillie Gifford Global StewardshipEquities
Global equities
Corefind out moretrade
Janus Henderson UK Responsible IncomeEquities
UK equity income
Corefind out moretrade
ASI Europe ex UK Ethical EquityEquities
European equities
Adventurousfind out moretrade

how to use the table →

ii ACE 40 - Embraces

Funds that focus on companies delivering positive social and/or environmental outcomes.

These funds often refer to focusing on 'delivering positive impacts' as a major element of their investment strategy and purpose. Alternatively they may simply be entirely invested in a sector (such as renewable energy or social housing) where the potential to help deliver positive benefits is widely recognised. Fund strategies vary and you should be aware that unlike the other two styles additional ethical factors may not always be considered by funds of this kind.

Name

Asset group

Investment category

Selection rationale

Invest now

Impax Asian Environmental Markets IRL XEquities 
Asian equities
Adventurousfind out moretrade
Impax Environmental Markets OrdEquities 
Global equities
Smaller companyfind out moretrade
iShares Global Clean Energy ETF USD Dist GBPAlternatives 
Specialist
Low costfind out moretrade
Syncona OrdAlternatives 
Specialist
Adventurousfind out moretrade
Threadneedle UK Social Bd Z Grs Acc£Fixed Income 
Sterling bonds
Adventurousfind out moretrade
VT Gravis Clean Energy Income C GBP AccAlternatives 
Specialist
Incomefind out moretrade
Lyxor Green BondFixed income
Global bond
Low costfind out moretrade
FP Foresight Global Real InfrastructureAlternatives
Specialist
Corefind out moretrade
Baillie Gifford Positive ChangeEquities
Global equities
Adventurousfind out moretrade
Montanaro Better WorldEquities
Global equities
Smaller companiesfind out moretrade

how to use the table →

Risk warnings

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.

Not yet an ii customer?

You can buy the ii ACE 40 investments in any of the accounts we offer.

£9.99 a month covers you for multiple accounts (open a SIPP by 31 October and pay no SIPP fee until May 2022. Then just £10 a month extra).

Our flexible account, where you can invest in all markets in the way you want.

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