Six specialist options for this year’s ISA
When it comes to our investments, most of us start off with a ‘core’ – the assets or funds at...
ASI UK Ethical Equity
ASI UK Ethical Equity fund combines abrdn’s excellent company analysis with a 'no compromises' investor-led ethical screening system. The process is aided by the company's proprietary ‘matrix’ system, resulting in a portfolio of between 50 and 100 UK companies which manager Lesley Duncan will look to keep for three to five years. Although not a primary aim, the fund produces a small, natural yield.
Previously Standard Life Investments UK Ethical
Our opinion
The transparency behind the ethical considerations of this fund are a real stand out feature. By inviting investor opinion annually into what categories they want the fund to include or exclude, the portfolio can justifiably be held up as a best in class ethical fund. The process itself has the weight of Aberdeen Standard’s considerable research team behind it, plus a consistent and conscientious manager in Lesley Duncan, making for a very competitive option.
Company description
abrdn is the new brand of Aberdeen Standard Investments (ASI). It unifies the merger of Aberdeen Asset Management and Standard Life Investments, which took place in August 2017. With more than 30 locations worldwide, abrdn seeks to find the most sustainable investment opportunities globally.
Fund manager
Lesley Duncan worked at Bothwell Asset Management as a trainee analyst before joining Standard Life in 1995. She has run ASI UK Ethical Equity fund since 2004. She puts ethics at the heart of her investment strategy and is also the group's housing sector specialist, contributing ideas and analysis for the wider team. Lesley has a BA (Hons) in Business Economics and Finance.
You can invest without compromising on your values and beliefs - and without compromising on your returns.
Lesley DuncanFund manager
Investment process
Lesley and her team regularly survey their investors to determine evolving ethical themes. The result of these surveys influences which sectors or companies are eliminated by the team's investment screen. For example, gambling, tobacco and alcohol production are avoided completely. This means they are picking companies that truly reflect the values of their investors. If a holding becomes unethical, or falls out of favour, Lesley will sell it completely. Stocks are selected based on abrdn’s proprietary screening tool, ‘matrix’. It looks for four key factors; quality, growth, momentum and value. Lesley then looks for companies whose upside potential is not priced into their shares.
Risk
Due to the ethical screening, ASI UK Ethical Equity will avoid entire sectors, which means its performance can differ quite significantly from the benchmark. There is a noticeable bias to medium-sized companies in the fund, which could at times increase volatility. The process also creates a bias to growth-orientated stocks, which can lead to periods of underperformance when they are out of favour.
The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund nor of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating. All performance data, as well as fund size, OCF, AMC, annual income (historic), share price discount or premium, is sourced directly from FE Analytics, and will change periodically.