|Asset Group||Asset Sub-Group||Investment Category|
|Equities||UK equity income||Core|
Why we recommend it
This fund has been managed by Andrew Jones since 2012, and Jones has a further 7 years’ experience managing equity income strategies. He is supported by David Smith, a similarly highly experienced investor, and the Janus Henderson Global Equity Income team of 10 further individuals.
ESG support is provided by a dedicated team who also conduct engagement and proxy voting. Exclusions are applied to the universe and ESG risk considerations integrated into the stock analysis and expected to be maintained at below benchmark levels based on Sustainalytics data.
The investment approach is bottom-up and flexible with a strong focus on valuation and medium-term prospects backed by a defensible competitive position, affordable investment requirements and effective management. Good cashflow, robust balance sheets and growing dividends are key requirements..
The fund often has a slight growth bias versus UK Equity Income Category peers and has seen persistent biases to financials, IT, communication services and utilities versus peers and the FTSE All Share Index. The focus on dividend growth can result in a yield below that of peers and the benchmark at times, although recently the yield has been higher. There is the flexibility to invest up to 20% in overseas names. The manager has produced a strong and relatively consistent track record versus peers and his experience and tenure on this product is a key positive.
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. This fund excludes large number of companies due to its strict ESG approach, which significantly shortens its investment universe.
Smaller companies: The fund’s bias towards mid and smaller companies could lead to performance being more volatile than the broader market.
|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.