Interactive Investor

ii ACE 40 investments:
Montanaro European Income

ii Ace 40
Asset GroupAsset Sub-GroupInvestment Category
EquitiesEuropean equitiesIncome

Why we recommend it

Strong and successful investment process: An investment process that Montanaro Asset Management have been following long before the launch of the fund in November 2015. 

Above market level of income: This is combined with very strong short and long-term performance against the Investment Association Europe (excluding UK) peer group.

Experienced and well-resourced management: The fund is managed by George Cooke and Alex Magni and supported by a team of analysts with a strong European background. Cooke, with 16 years’ experience in the industry, has been running the strategy for the past six years.

The fund is competitively priced: The ‘A’ share class levies annual ongoing charges of 0.8%.

Ethical criteria

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: ESG Plus. This relates to funds that have a strong ESG strategy plus SRI/ethical/stewardship-related activity.

How the fund is managed: The fund invests primarily in small and mid-cap companies quoted in the EU, Iceland, Norway and Switzerland that offer an attractive dividend yield or the potential for dividend growth. With an objective to achieve capital growth and income, the manager aims to invest in cash generative, well-managed, simple and profitable businesses with sustainable competitive advantages and hold them for the long term.  There is an emphasis on earnings and dividend growth as well as the safety of dividends. The fund also avoids sectors such as Controversial Weapons, Tobacco, Gambling, Pornography, Alcohol and High Interest Rate Lending, excluding companies with 10% or more revenue exposure to these restricted business areas. Environmental, Social and Governance (ESG) has long been fully integrated into the investment process.

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 specific sectors or companies from a comparable investment universe.

Smaller companies: The fund has a smaller company bias which could lead to higher volatility during certain time periods. 

Currency: Because investments are made predominantly outside the UK, performance may be significantly affected by changes in exchange rates.

Information and data compiled to October 2021.

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.