|Asset Group||Asset Sub-Group||Investment Category|
|Equities||UK equities||Low cost|
Why we recommend it
The fund tracks the MSCI United Kingdom IMI Extended SRI Low Carbon Select 5% Issuer Capped Index which consists of c.140 UK companies that have lower carbon exposure than that of the broad market and exhibit high ESG performance. The index also reduces concentration by capping individual positions to a maximum weight of 5% but, despite this, the concentration of the top 10 holdings accounts for 45-50% of the index value.
This fund has a Morningstar Sustainability Rating of five globes (out of a maximum of five).
A soundly constructed and reasonably representative portfolio with a low fee but it has lagged against its mainstream Morningstar UK Large-Cap Equity Category peers on a risk-adjusted return basis over three- and five-year periods. This is a fund with a high Sustainability Rating and a low fee that tracks a broadly representative and diversified benchmark.
The fund is reasonably priced: The ‘A’ distributing share class levies annual ongoing charges of 0.23%.
ii ACE ethical style: Avoids. This means the ETF 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: Sustainability Tilted. These funds integrate sustainability considerations into their investment process in order to help to make better investment decisions, but investments are not driven by sustainability themes. These funds may invest in most company types and may be ‘overweight’ in companies with higher standards and ‘underweight’ in companies with poor practices – rather than necessarily excluding them. They may work to encourage more sustainable business practices through stewardship activity.
Please be aware that although all of these funds have ethical criteria their strategies vary. Some funds, particularly low cost and tracker funds, often invest in companies that are considered to be more responsibly managed than their competitors - but may still be considered undesirable by some ethically minded investors.
Ethical screening: In certain market conditions the performance of the fund may differ significantly from others in the peer group that do not exclude ethically screened sectors or companies from a comparable investment universe.
|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.