How Wellth Portfolios work

Menu

How Wellth Portfolios work

“Know what you own, and why
you own it.”

Peter Lynch, legendary investor
and philanthropist

Expert collaboration

Wellth portfolios are a collaboration between two complementary business partners. 

Worthstone is a sustainable investment specialist and they bring their market-leading expertise and impact rating methodology to the Wellth Portfolios.

Collidr Asset Management is a technology-driven discretionary fund manager (DFM) and has the regulatory responsibility for managing the Wellth Portfolios utilising its institutional investment capability and technologies.

The Wellth Portfolio process

Accounting for both the underlying companies and the asset management organisations that oversee them, Worthstone rigorously evaluates the hundreds of investment funds available that have the potential to be genuinely impactful (out of the thousands that do not).

Several measures, which encompass both enterprise and investor impact, combine to deliver an overall Worthstone impact rating, which determines whether a fund can be considered by Collidr’s Wellth Investment Committee for possible inclusion in the portfolios.

Expert Methodology


Expert Methodology

1. Impact experts, Worthstone, identify a universe of funds that meet their criteria for positive impact investing. These funds are assessed and rated through their proprietary, market-leading methodology, which analyses more than 250 data points and metrics.

Back:
Next:

Asset Allocation


Asset Allocation

2. In parallel, Collidr determines a sensible, well-balanced, globally-diversified strategic asset allocation for the portfolios.

Back:
Next:

Impactful Portfolios


Impactful Portfolios

3. Worthstone provides a shortlist of rated funds with acceptable impact characteristics to Collidr’s Wellth Investment Committee.

Based on the desired asset allocation, the Investment Committee refines the selection of funds to create a range of portfolios, at different levels of risk, each with the highest possible impact rating.

Back:
Next:

Ongoing Governance


Ongoing Governance

4. Continual oversight, challenge and review is provided, from both an investment and positive impact perspective.

With support from Worthstone, Collidr’s Wellth Investment Committee also ensures the latest worthwhile impact investment developments are incorporated into portfolios.

Back:

“For many investors wanting to make a positive impact alongside a financial return, ESG screening simply doesn’t adequately meet their objectives. Wellth Portfolios go so much further and aim to deliver radical transparency; to bring impact investments to life and authentically show the difference investors’ money has made, or has the potential to make.”

Gavin Francis, Founder & CEO of Worthstone

Impact methodology

A closer look at the impact assessment and rating methodology; one of the key aspects underpinning the Wellth Portfolios that sets them apart in the market place.

Positive Impact

Positive impact is the positive social and environmental focus of the companies in which funds invest.

Worthstone’s process is to measure the proportion of these companies’ sales and purchases that meet the clearly defined impact targets underlying the United Nations Sustainable Development Goals (SDGs).

The SDGs provide the basis for assessing positive impact as a globally accepted and comprehensive framework connecting the world’s most pressing challenges with the potential solutions.

Read more + Less –

Active Agent

The active agent score measures fund managers’ own contribution to the positive impact of the companies in which they invest.

The managers are assessed according to how much they actively encourage and support companies to adopt sustainable practices that help both people and planet.

Read more + Less –

Avoidance of Harm

The avoidance of harm criterion measures the extent to which funds have holdings in companies that do active harm, socially and environmentally.

It also includes the assessment of the proportion of companies’ assets and revenues that relate to harmful business practices.

Read more + Less –

Environmental, Social & Governance (ESG)

The ESG criterion is used to analyse the extent to which the companies in which the funds invest operate according to ESG principles and are resilient to ESG risks, for example through anti-bribery practices and water resources management.

Carbon Risk

Carbon risk measures the vulnerability of companies in which the funds invest to financial risk arising from environmental policies and climate change.

This can include physical risks from changing and extreme climate, as well as transitional risks from changing regulation, practices and technologies.

Read more + Less –

Paris Alignment

This metric indicates the extent to which funds are contributing to progress towards meeting the 2015 Paris Agreement targets for climate change.

In this context, the key target is to limit the rise in global temperature to well below 2°C (and ideally 1.5°C) above pre-industrial levels by the end of the 21st century.

Read more + Less –

Next up: About Wellth Portfolios

About Wellth Portfolios