ii aces ethical investments with the ACE 40 list


Millennial attitudes are often scoffed at, but it is thanks to them that we’re actively working towards a more ethical, sustainable and socially responsible planet. Being the largest generation in history, it’s no surprise that millennial values have already begun to affect business globally, but it was David Attenborough’s devastating Blue Planet II series on the impact of plastic on our oceans that tipped the world into ethical activism. That activism has since morphed into Greta Thunberg’s global School Strike and the Extinction Rebellion movements, forcing governments and companies to sit up and take notice.

Green investing

That ethical activism has now spread to investing. Investors want to make sure that the investments they make are ethical, sustainable and socially responsible. Demand has been such that significant numbers of fund managers are giving funds ethical once-overs to make sure they fit with this ethical new world. Some, however, have been accused of jumping on the bandwagon and doing little more than greenwashing their funds — giving them a superficial green facelift without fundamentally changing the way they work. Regardless, the investment market is moving in the right direction and using its governance powers to push the companies it invests in to change their behaviour for the better.

Ace up the sleeve

Although the size of the ethical investment market has doubled to £24bn in the last five years, finding ethical funds is still difficult for DIY investors as they’re rarely flagged as such on DIY investment platforms. To help investors find their way through the ethical maze, interactive investor has launched a shortlist of the 42 best ethical investments, the ACE 40 list.

ACE stands for Avoids, Considers and Embraces, which are the three fundamental methods used in responsible investing. Avoids means they exclude industries such as tobacco, gambling, pornography or weapons. Considers means the focus is on environmental, social and governance issues. Embraces means they invest in companies that are making a positive impact in the world. Each fund is analysed and researched by ii experts in collaboration with SRI Services, an independent specialist responsible investment research house.

All 42 funds are rated as either A, C or E funds and are instrument agnostic, meaning they’re passive or active funds, ETFs or investment trusts. The 42 funds have been selected from the longer ethical investments list. ii has built on its existing fund selection methodology by adding an additional ethical step into its fee, style and performance criteria. At the ethical step of the process, ii not only categorises investments as A, C or E, but also checks that the ethical style is being actively implemented to avoid greenwashing. It will review the list on a monthly basis.


The ACE 40 funds are also categorised as low cost, core, income, smaller company and adventurous and included in the broader Super 60 list. This categorisation, combined with the ACE rating, gives investors a more holistic and comprehensive assessment of the investment  — after all, investors have more than just ethical concerns, they also want to know their investments suit their risk attitudes and investment objectives — making it easier for investors to choose the right investments.

ACE 30 Global Equities list

The funds are drawn from seven equity sectors (UK, UK Equity Income, Global, Emerging Markets, Asia, Europe and US equities), two fixed income sectors (Global and Sterling bonds) and mixed-income and specialist sectors.  Above is an extract of the ACE 40 funds from the global equity sector.

To find out more and see the full list, click here: https://www.ii.co.uk/ii-ace-3

Photo by Markus Spiske on Unsplash