|Asset Group||Asset Sub-Group||Investment Category|
|Equity||Global equity income||Core|
Why we recommend it
The fund is managed by the Global Income Growth team, which has a focus on income mandates. It consists of three experienced managers, supported by 4 more junior analysts and an ESG specialist. ESG risks are assessed through a scoring system, with the specialist having the right of veto over any stock.
The fund primarily invests in stocks able to provide sustainable growth and resilient dividends. These names are likely to represent around 75% of the portfolio, with the remainder invested in more opportunistic situations where growth is expected to be stronger, but the sustainability of growth and dividends are less certain over the longer term. The team focuses on dividend growth and therefore has less exposure to higher-yielding stocks in industries which are cyclical or lack structural growth.
The above results in a portfolio that can at times shows a yield only slightly higher than the mainstream MSCI ACWI benchmark. At the sector level there has been a persistent overweight to industrials and limited exposure to commodities and utilities. In terms of style the portfolio can show a slight growth bias versus benchmark, but this is persistent and more obvious versus global equity income peers.
This fund has a clear mandate which results in some persistent biases, particularly versus global equity income peers, and may impact relative performance at times. The core of the strategy draws on the lower-risk area within Baillie Gifford’s long-standing growth approach. This team then adds dividend resilience and ESG elements, both of which are sensible additions to the longer-term growth philosophy. This process has been successfully implemented by James Dow and Toby Ross since the end of 2018.
The fund is competitively priced: The ‘B’ income share class levies annual ongoing charges of 0.54%.
ii ACE sustainable 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: ESG Plus. This relates to funds that have a strong ESG strategy plus SRI/ethical/stewardship-related activity.
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.
Currency: Because investments are made predominantly outside the UK, performance may be significantly affected by changes in exchange rates.
|Information and data compiled to March 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.