Interactive Investor

ii ACE 40 investments:
Wellington Global Stewards

ii Ace 40
Asset GroupAsset Sub-GroupInvestment Category
EquityGlobal EquitiesCore

Why we recommend it

The fund is managed by Mark Mandel and Yolanda Courtines who have been in place since inception in 2019. Both are experienced analysts with over 20 years’ experience and Mandel was Director of Global Research at Wellington between 2002 and 2017. Support is provided by a team of over 50 global industry analysts plus a 40-person sustainable investment team.

The managers aim to hold stocks that combine a high relative return on capital with good stewardship, which they believe can lower capital costs over time. Starting with an investment universe of 750 highly liquid global stocks, they use quantitative screens to narrow this down to 150 promising candidates, which they research intensively with the help of Wellington's global industry analysts and environmental, social and governance (ESG) team. On the fundamental side, they focus on the sustainability of a company's returns on equity and the skill of its management at allocating capital. On the stewardship side, they look at each company's ESG priorities and willingness to engage.

The portfolio is reasonably concentrated with 35-45 stocks. Unlike many ESG peers the portfolio maintains a blend style profile rather than being growth focused. At the sector level there are often overweights (holding more than the benchmark) to industrials and financials and underweights to energy and communication services versus the benchmark, MSCI All Country World Index. Since launch the process has been successfully implemented.

The size of the analytical resource supporting the managers and the experience levels within it are a key positive for this fund, while there is an equally impressive level of resource available on the sustainability side. The managers both have long tenures at the firm and are well placed to continue to take advantage of these resources.

Ethical criteria

ii ACE sustainable 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 Focussed. 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.

Information and data compiled to October 2023.

Risk warnings

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 Review.

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.