|Asset Group||Asset Sub-Group||Investment Category|
|Alternatives||Mixed asset||Low cost|
Why we recommend it
Low cost, globally diversified, one-stop shop for active management: With an ongoing charge of just 0.35% and the multi-asset fund’s global diversification, the fund is an ideal way for beginner investors to invest in a responsible fashion. It is also one of our six Quick-start funds.
Clear and well-defined investment process: The fund is part of the BMO Sustainable Universal MAP range, which combines the firm’s expertise in multi-asset active management and responsible investing.
Successful long-term track record: The new BMO Sustainable Universal MAP funds were launched in December 2019. However, the BMO team has a successful long-term track record of producing strong risk adjusted returns in running multi-asset ESG products since the launch of, what is today known as, BMO Responsible UK Equity in 1984.
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: Sustainability Themed. This relates to funds that focus on sustainability related issues and opportunities as part of their investment strategy, often alongside ethical criteria. Their focus is often around longer term societal and environmental trends.
How the fund is managed: The BMO Sustainable Universal MAP Balanced fund is an actively managed multi-asset fund, designed to provide consistent long-term capital growth by using a balanced risk approach. The fund targets an annualised return of 3% above inflation over five years. The fund can hold as little as 30% and as much as 70% in equities. Bear in mind the inflation target is just a target and is not guaranteed.
Along with avoiding damaging or unsustainable practices the fund focuses on companies making a positive difference to the world we live in. In its prospectus, the fund states the fund manager seeks to “avoid investments that are contrary to the goals of making positive contributions to society and/or the environment.” In addition, the fund invests “in companies that provide sustainable solutions or that make positive contributions to society and/or the environment.” Thirdly, the fund manager targets companies that “will benefit from active investor engagement, leading to reduced risk, improved performance, best practices and, overall, long-term investor value.”
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 the fund contains investments outside the UK, performance may be significantly affected by changes in 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.