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ASI UK ETHICAL EQUITY I

ASI UK ETHICAL EQUITY I - Overview

Overview of ASI UK ETHICAL EQUITY I

This fund aims to provide long term growth by investing in a diversified portfolio of UK equities that meet Aberdeen Standard's ethical criteria. The fund follows a reasonably strict ethical process, which includes both negative and positive screening, where a number of companies and industries are screened in or out of the stock selection process depending on their impact on the environment or society. Current areas of exclusion include alcohol, tobacco and companies deemed to cause environmental damage - the latter typically rules out most oil and mining stocks.

  • Standard Initial Charge 0.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector UK All Companies
Structure OEIC
Launched February, 1998
Size £365m
Yield 0.5%
Charging basis Income
Dividends paid 30 Apr

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.85%

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

Fund manager Lesley Duncan has an extensive track record in both UK equity and ethical investing, having taking over the reins of this fund in 2004. She is a member of Aberdeen Standard's large UK equity desk, and benefits from shared expertise and research when constructing the portfolio. The fund's fairly strict ethical approach tends to exclude many of the larger companies in the index, leading to a bias to mid-cap stocks and also to certain sectors. As a result performance often differs from the benchmark and peer group and can be volatile. As with all ethical funds, investors should check the fund's ethical restrictions in the prospectus before investing.

Portfolio

Allocation Proportion(%)
Equity 97
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 3
Allocation Proportion(%)
UK 94
Europe 3
North America 2
Japan 0
Pacific 0
Emerging Markets 1
Allocation Proportion(%)
Large Caps 10
Mid Caps 44
Small Caps 46

View all performance data for this fund

Investment process

The first stage of the investment process is the negative ethical screen of the FTSE All-Share universe. Aberdeen Standard employs MSCI to provide its external ethical screening service. This is supplemented by an internal responsible investment team which is independent from the fund managers. The range also has an Ethical Funds Advisory Group that meets every six months to review the ethical policies and procedures in place. Current exclusions include: companies that cause environmental damage or are involved in nuclear power, animal testing, genetic engineering, intensive farming, alcohol, gambling, pornography, tobacco and weapons. They also exclude any company with human rights violations or poor business practices. These screens eliminate around 40% of the FTSE All-Share by market value. The second stage of the investment process is the positive ethical rating. Positive inclusions include: environmental technology and pollution control companies, companies that promote equal opportunities, companies that donate to charities or are strongly involved in the community, and companies with good principles of business behaviour and ethics. The third stage of the process seeks to rank the companies remaining in the acceptable universe into preferred stocks/ best ideas that will account for at least 80% of the portfolio. This stage of the process is bottom-up and research focused, with the UK equity desk looking for opportunities where companies are focused on change. In forming the portfolio the manager feeds off the rest of Standard Life’s UK desk, using its proprietary quantitative stock Matrix and taking ideas from the team’s “Winners List” of high conviction ideas. The manager seeks a tracking error between 4-10% of the index so the fund is diversified across the sectors that it can invest in.

Live feed

Bid price(inc) 78.61p
Accum units 251.40p
Fund commentary 23/07/19
Fund data updated on 21/09/21

Asset allocation

Allocation Proportion(%)
Equity 97
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 3

Equity Geographic

Allocation Proportion(%)
UK 94
Europe 3
North America 2
Japan 0
Pacific 0
Emerging Markets 1

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 10
Mid Caps 44
Small Caps 46

Top 10 holdings

As at: 30/06/2020
4.5% Boohoo Group Plc
3.4% Kainos Group Plc
3.2% Polypipe Group Plc
3.1% Bellway
3.1% Howden Joinery Group Plc Ord
2.7% Aveva Group
2.7% Fevertree Drinks Plc
2.3% Smith(Ds) Plc
2.3% Grainger Plc Ord 5p
2.3% Prudential Plc
Source: Trustnet

Sector breakdown

Consumer Services 24%
Industrials 22%
Financials 21%
Technology 13%
Consumer Goods 11%
Telecommunications 3%
Basic Materials 2%
Utilities 2%
Money Market 2%
Health Care 1%

Portfolio details

The portfolio tends to hold 50-100 stocks. 75 are currently in the portfolio. Top 10 account for 26% of the portfolio.

Constraints

No sector or stock limits, but any position in a single stock will tend to be below 5%, including cash. Tracking error 4-10%.
There are some limits placed on the portfolio but these could result in significant divergences from the benchmark from time to time.

Average monthly relative returns Bestinvest MRI
16/17 17/18 18/19 19/20 20/21   3 years 5 years Career 3 years 5 years Career
0.60% 0.33% -0.60% 0.66% 1.02%   0.36% 0.40% 0.20% 78.50% 90.50% 94.20%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Lesley Duncan

Manager. In her role as investment director in Standard Life Investments’ UK Equity team, Duncan manages the UK Ethical fund and specialises in the Household Goods and Support Services sectors. She joined Bothwell Asset Management as a Trainee Analyst in 1993 before moving to Standard Life in 1995 as a Trainee Investment Analyst on the UK desk, becoming an investment manager in 1999. She holds a BA (Hons) in Business Economics and an MPhil in International Finance.

Track record

Lesley Duncan has 17.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.2%. During the worst period of relative performance (from February 2007 - December 2008) there was a decline of 25% relative to the index. The worst absolute loss has been 50%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 94%.

Periods of worst performance
Absolute -50% (May 2007 - March 2009)
Relative -25% (February 2007 - December 2008)

Other funds managed

Sector record since June 2004 (17 yrs)




About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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