Equities – We consider both high and low risk investments, as the overall balance of the portfolio can be adjusted to match an investor’s profile. However, in order to determine the inherent risk of an investment, we look at the volatility, market capitalisation distribution, number of holdings and other portfolio metrics.
Fixed Interest – There are limited numbers of funds, especially those with a higher social impact, so there is limited scope to be too prescriptive in terms of credit duration, quality and geography, but we look for diverse funds, chiefly consisting of investment grade credit.
Infrastructure & Real Estate – A low premium to net asset value is preferred all other factors being considered. Also we look for low levels of gearing and predictable income flows underpinned by long term contracts with some form of backing from UK government.