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ii ACE 40 - L&G Ethical Trust Fund

Ethical investing

ii ACE 40 investments:
L&G Ethical Trust Fund

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Asset Group Asset Sub-Group Investment Category
Equities UK equities Low cost
 

WHY WE RECOMMEND IT

Experienced investment manager: Legal & General is a leading provider of passive, index-tracking funds.

Low index-tracking error: This index-tracking fund has closely tracked the performance of its bespoke reference stock market index. This is the FTSE 350 index of the UK’s largest listed companies by market capitalisation, excluding those that do not conform to the fund’s ethical and environmental guidelines.

The fund is competitively priced: The ‘I’ accumulation share class levies annual ongoing charges of 0.31%.

 

ETHICAL CRITERIA

ii ACE ethical style: Considers. This means the index-tracking 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 objective of the fund is to provide growth by tracking the performance of the FTSE 350, excluding shares of companies whose business does not meet a range of ethical and environmental guidelines determined by an external agency chosen by the manager. In broad terms the fund has a higher weighting in telecoms, media, retail and financial services than the full FTSE 350 index. This comes at the expense of the tobacco and defence sectors.

Please be that aware that although these funds have ethical criteria their strategies vary. Some funds, particularly low cost and tracker funds, often invest in companies that are considered to be more responsibly managed than their competitors - but they may still be considered undesirable by some ethically minded investors.

Please note that this fund contains oil and gas companies within its top 10 holdings.

 

THE RISKS

Ethical screening: In certain market conditions the performance of the fund may differ significantly from others in the peer group that do not exclude ethically screened sectors or companies from a comparable investment universe.

 

Information and data compiled to October 2020.

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Risk warnings

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.