Global Sustainable Balanced (US Tax-Aware)

Evidence Based Investing

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Portfolio Characteristics

Inception Date – June 2016
Currency – USD
Dividend Yield – 2.14%
Daily Liquidity

Investment Approach

Evidence Based Investing is our core investment philosophy, which means that rather than relying on short-term forecasting, we draw information about expected returns from the market itself. Letting markets do what they do best, drive information into prices, frees us up to spend time where we believe we have an advantage, namely in how we interpret the research and how we design and manage portfolios. It means we take a more systematic approach to investing, an approach we can implement consistently, and investors can understand and stick with, even in challenging market environments.

Rigorous, unbiased research has yielded six expected return premia for patient investors, which are equity premium, small cap premium, value premium, profitability premium, term premium and credit premium. We then select the most suitable securities to create the desired market exposure in the most cost and tax efficient way to capture these premiums.

We manage investment risks by using the combined powers of diversification and asset allocation. Diversification is a way to dampen risks. While some risks can be diversified away, market risk however remains and is expected to enhance your long-term returns if you build them into your total portfolio, and if you stay the course with them over time.

Asset allocation is determined by the investor’s specific goals and times frames and guided by his or her risk tolerance and capacity.

Strategy Description

The Capital Company’s Sustainable Investing Portfolio is an actionable solution for clients who want to invest alongside their values and include sustainability issues into their portfolios without sacrificing returns.

In our Sustainable Investing portfolios, we incorporate the principles of environmental, social, and governance issues (ESG) as well as impact investing into our investment process. Then we add an overlay of our core investment philosophy of Evidence Based Investing, which we believe generates better long-term returns. The end result is a dynamic portfolio that achieves an optimum balance between social impact and investment outcomes.

Our portfolios are fully diversified across asset classes and can be adjusted to suit the investor’s risk level. We aim to invest at least 80% of assets in areas related to sustainable investing, be it ESG, Impact or SRI.

Portfolio Performance

YTD 2020 2019 2018 2017 2016
Portfolio0.24%14.45%23.47%-8.36%20.26%4.16%
as of 29/01/2021

Annualised Return

Standard Deviation

Sharpe Ratio

Portfolio10.98%13.77%0.80%

Allocation

America 57.64%

Greater Europe 18.10%

Developed Asia 14.80%

Emerging Asia 8.45%

Central/Latin America 1.01%

Sector

Financials

13.93%

Industrials

8.52%

Consumer Discretinoary

12.18%

Real Estate

5.63%

Consumer Staples

6.12%

Materials

3.89%

Healthcare

16.01%

Utilities

2.91%

Technology

20.76%

Energy

0.49%

Telecommunication

9.56%

Sector

Financials

13.93%

Industrials

8.52%

Consumer Discretinoary

12.18%

Real Estate

5.63%

Consumer Staples

6.12%

Materials

3.89%

Healthcare

16.01%

Utilities

2.91%

Technology

20.76%

Energy

0.49%

Telecommunication

9.56%

Sector

Investment Grade

null

High Yield

0.00%

Other

0.00%

Financials

13.93%

Industrials

8.52%

Consumer Discretionary

12.18%

Real Estate

5.63%

Consumer Staples

6.12%

Materials

3.89%

Healthcare

16.01%

Utilites

2.91%

Technology

20.76%

Energy

0.49%

Communication

9.56%

Sector

Diversified Reits

null

Office Reits

0.00%

Retail Reits

0.00%

Hotel & Resort Reits

0.00%

Industrial Reits

0.00%

Financials

13.93%

Industrials

8.52%

Consumer Discretionary

12.18%

Real Estate

5.63%

Consumer Staples

6.12%

Materials

3.89%

Healthcare

16.01%

Utilites

2.91%

Technology

20.76%

Energy

0.49%

Communication

9.56%

Top Holdings

StockWeight

Vanguard ESG US Stock ETF31.67%

Vanguard ESG International Stock ETF23.02%

JPMorgan Ultra-Short Income ETF4.33%

iShares iBoxx $ Investment Grade Corporate Bond ETF3.93%

iShares Interest Rate Hedged Corporate Bond ETF3.36%

iShares Core International Aggregate Bond ETF3.25%

iShares Global Clean Energy ETF3.00%

iShares TIPS Bond ETF2.62%

iShares MSCI International Momentum Factor ETF2.47%

iShares MSCI USA Quality Factor ETF2.42%

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