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Why we recommend it
Experienced and well-resourced manager: David Gait, head of the Stewart Investors Sustainable Funds group, has managed the investment trust since July 2010. Sashi Reddy has been co-manager since April 2014. Both managers are highly regarded. While recent performance has underwhelmed, we maintain our long-term conviction that this fund is one of the best ESG options in the sector.
ii ACE ethical style: Considers. This means the trust 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: This investment trust places an emphasis on companies that are socially and environmentally efficient and can demonstrate responsible business practices. The trust invests in companies which are positioned to benefit from, and contribute to, the sustainable development of the countries in which they operate. Companies are classified into one of three sustainability sectors: sustainable goods and services, responsible finance, and required infrastructure. There is also a strong emphasis on ‘quality’ businesses that can perform well over the business cycle.
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: Your investment may be significantly affected by changes in currency exchange rates.
The fund is more expensive than peers: The investment trust levies annual ongoing charges of 1.3%.
Emerging markets: The trust has some exposure to emerging markets, where equity prices are typically more volatile than developed market equity prices. There are typically lower standards of corporate governance than in developed markets.
Net asset value: Shares of the investment trust may trade at a discount or a premium to net asset value for a variety of reasons including market sentiment and market conditions. On a sale you could realise less than the net asset value.
|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.