This family of ESG Model Portfolios seeks to invest in ETFs that track companies with the strongest environmental, social and governance (ESG) factors. We also invest in ETFs for Impact Investing and ESG Themed ETFs. Impact Investing seeks to provide capital to address the world’s most pressing challenges in sectors such as sustainable agriculture, renewable energy, and microfinance. To be able to control the risk of the portfolio we may also invest in G7 government bonds.
The Cautious ESG portfolio comprises assets in equities and fixed income across different regions. The portfolio is run on a low to medium risk level 3, which targets a volatility of around 4% to 6% and a maximum drawdown of 15%. During periods of extreme risk, we may move part or all of the allocations to lower risk ETFs or cash.
We use the versatility of ETFs to gain exposure to a wide range of economically priced liquid asset classes. Our state of the art technology screens extensive market, macro-economic and ETF data sets from around the world. This enables us, along with human overlay, to determine economic cycles and risk appetite in the markets and to capture the risk premia across various asset classes.
You can see the details of this investment strategy under the following LINK.