|Asset Group||Asset Sub-Group||Investment Category|
|Equities||UK equity income||Adventurous|
Why we recommend it
Hugo Ure has managed this fund since launch in 2016 and has served as the similarly managed Trojan Income fund's deputy manager since 2009. He works alongside three further individuals who are focused on UK income products, while a handful of UK names are also covered by other analysts at the group.
ESG risks are integrated into the research process, with this fund additionally being subject to various exclusion policies.
The process aims to provide long-term income growth and the avoidance of permanent capital loss through investment in sustainable and easily understood businesses. The core of the investment universe is narrow due to the focus on quality companies with low capital intensity and low cyclicality of earnings, but there is scope to add higher growth and cyclical names should sufficient quality and longer-term growth be evident. Unusually, stocks held in Troy funds have to be approved by the whole investment team before being added to the firm’s investment universe.
The portfolio has biases towards consumer staples and software, and away from sectors such as basic materials, energy, airlines, homebuilders and banks. The focus on dividend growth can result in a below market yield and a clear growth bias versus UK Equity Income peers and the FTSE All Share Index.
The firm-wide philosophy and process at Troy is a positive. The experience of the fund’s manager and the definition of the stock universe at the firm level gives further confidence that this strategy will continue to be run in line with Troy's investment philosophy going forward.
Although managed with a quality mindset that has proved its worth over time, investors should be aware of the biases in the portfolio which will influence relative returns over shorter time periods.
ii ACE sustainable style: Avoids. This means the fund simply screens out specific sectors considered to be unethical, or stocks whose environmental, social and governance (ESG) scores are below a certain threshold.
Fund EcoMarket category: Ethical. Ethical Funds consider 'values based' issues like tobacco, gambling and armaments, typically alongside a wide range of environmental and social issues Some funds have strict screening criteria and avoid a significant nuber of companies. Others invest in most sectors, focusing on companies with the highest standards. Strategies vary.
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 its benchmark, the FTSE All-Share index. The portfolio typically holds around 45 stocks.
Currency: Although the fund invests mainly in the UK, your investment may be significantly affected by changes in currency 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.
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.