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Why we recommend it
Manager Jack Nelson has been part of this team since 2011 and was co-manager on this fund in 2014 before taking over as lead in 2017. He therefore has a good level of experience and is part of a 14-person team that forms the Sustainable Funds Group. The group includes David Gait a highly experienced investor and previous manager of this fund.
The strategy follows the house approach and employs a bottom-up, benchmark-agnostic, and long-term style that looks for high-quality companies with sustainable and predictable businesses. There is a clear focus on management quality and a focus on companies that contribute to and benefit from sustainable development.
The ultimate portfolio is composed of 30-75 stocks and bears little resemblance to the MSCI EM Index. A preference for franchises with durable business models, high-integrity management teams, and limited regulatory/political oversight leads to a persistent overweighting in India at the expense of China and not surprisingly often lumpy performance relative to the benchmark. There are also biases down the market-cap scale, towards the growth style and to quality metrics.
In general, the fund’s best relative returns have come when the market has fallen, and conversely, the portfolio is expected to lag in momentum driven markets, led by multiple expansion. Over recent years the country bias has been a significant determinant of relative performance. Overall, the experience of the team and the time-tested process are likely to make it a long-term winner.
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.
Portfolio concentration: The fund has a concentrated portfolio compared with the MSCI Emerging Markets index. The fund typically holds 50 stocks.
Currency: Your investment may be significantly affected by changes in currency exchange rates.
Emerging markets: Emerging market equity prices are typically more volatile than developed market equity prices. There are typically lower standards of corporate governance than in developed markets.
|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.