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Why we recommend it
The team is led by Mike Fox who has been part of the sustainable team since its formation in 2003. Shalin Shah, who has been with the fixed income team since 2008 took over from Richard Nelson on the fixed income side in October 2020 when he stepped away from the sustainable range. George Crowdy and Sebastian Beguelin joined the team in 2020 before becoming comanagers in April 2021. They work alongside Fox on the equity side and were brought in, in part to reflect the team's desire to widen the investment universe outside of the UK and also to acknowledge the significant increase in assets.
Mike Fox is head of sustainability and looks to invest in companies that deliver a net benefit to society in terms of the products and services they provide, or which show leadership in environmental, social, and governance management on the equities side. On the fixed-income side, Shalin Shah looks for similar characteristics, but secured bonds make up the core and are complemented by issuers that are currently out of favour but where he can see clear credit migration catalysts.
The equity portion of the portfolio will typically comprise 40-50 names with top 10 holdings making up the lion’s share. Although the manager can invest across the market-cap spectrum, since 2009 he has had a consistent large-cap bias in the belief that bigger companies with their resources are better placed to address sustainability issues that society faces while still being able to generate good long-term returns for shareholders.
The fund is a strong choice for investors looking for modest income and capital growth from a portfolio centred around bonds, with some exposure to equities, using a sustainability approach that has been used in a disciplined manner over time.
Fox and Shah are experienced investors and are supported by an experienced and respected team that is well-versed in the sustainable process employed here. They also leverage wider teams at RLAM.
The fund is reasonably priced: The ‘C’ share class levies annual ongoing charges of 0.77%, which compares favourably with other multi-asset funds.
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.
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.
Above-average volatility: The fund typically holds a higher proportion of equities to bonds in its portfolio. This means returns can be more volatile than the average fund in the peer group.
Currency: Because around 60% of the fund is invested outside the UK, performance may be affected by changes in exchange rates.
|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.
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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.