|Asset Group||Asset Sub-Group||Investment Category|
|Equities||UK equity income||Core|
Why we recommend it
The fund has been managed by Catherine Stanley since 2009. She is primarily supported by 6 other managers/analysts, all of whom have input into the management of this fund. The team has other draws on its time but is experienced and stable. ESG screening is conducted by large team that is also responsible for engagement and voting. This team defines the investment universe for this product.
The ESG screening excludes a large proportion the FTSE 350 and therefore plays to the experience of Catherine Stanley in the small-cap space. Investment research focuses on quality characteristics, considering strength of business, financial position, and quality of management as key elements in the assessment. For this strategy, the team is also looking for yield, and all of this is balanced against near term valuations. There is also a small allocation to corporate bonds, which is managed by the credit team within the firm. Its purpose is to enhance yield, but its allocation has been low (less than 5%) over the last couple of years.
The growth and smid-cap biases from the screening come through in the final portfolio versus the mainstream UK Equity Income peer group, but they are not extreme and the yield from the fund is close to the peer group average.
The slight, but persistent growth and smid-cap bias versus peers will impact returns over the shorter term, but over the longer term the manager has shown successful implementation of this strategy. The team is experienced and stable, with a highly experienced leader in Catherine Stanley.
The fund is reasonably priced: The ‘2’ income share class levies annual ongoing charges of 0.89%.
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: Ethical. Ethical Funds consider 'values based' issues like tobacco, gambling and armaments, typically alongside a wide range of environmental and social issues Some funds have strict screening criteria and avoid a significant nuber of companies. Others invest in most sectors, focusing on companies with the highest standards. Strategies vary.
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.
|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.