|Asset Group||Asset Sub-Group||Investment Category|
Why we recommend it
Successful long-term track record: Strong short and long-term track record against both the benchmark and peers.
Risk controls in place: In order to prevent dramatic deviation from the index.
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: Ethically Balanced. These funds combine a wide range of, sometimes complex, positive and negative ethical screening policies as part of their investment strategies and may apply ‘best in sector’ strategies – which means they may invest in most sectors.
How the fund is managed: The fund is managed by Sarah Norris and Ian Hewett who aim to generate long-term capital growth by investing in quality European companies. They run a high conviction portfolio of around 50 stocks, which are primarily selected on their individual merits and comply with the team’s ethical criteria. They avoid investing in companies that have operations in certain areas such as animal testing, weaponry, adult entertainment, and gambling services. The fund will also seek to include companies whose business activities are regarded as making a positive contribution to the environment or improving the quality and safety of human life. This is assessed by referring to the UN Global Compact, which encourages companies to adopt sustainable and socially responsible policies.
The strategy aims to achieve a 2% higher return than the provided by its FTSE World Europe ex UK Index benchmark (before charges) per annum over rolling five-year periods. The team also applies strong risk management controls and the fund’s returns are not expected to deviate more than 8% from those of its benchmark under normal market conditions.
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.
High conviction approach: The strategy carries a higher risk, albeit with risk management controls in place. The fund, therefore, might not be suitable for investors with a lower risk profile.
Currency: Your investment may be significantly affected by changes in currency exchange rates.
|Information and data compiled to October 2020.|
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.