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Initial Screening
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- Verify Business Relief qualification
- Company must contribute to at least one of our four sustainable themes
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Risk Control
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- Central to our investment process and philosophy
- Applied at both portfolio construction and company selection levels
- Carefully assess downside risk potential
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Portfolio Construction
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- We aim to hold around 40 stocks
- 1% cash holding
- Wide range of company sizes
- Portfolio is a mix of smaller ‘acorn’ companies and a core of developed companies.
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Company Selection
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- Selected for positive impact their products or services contribute to sustainability – no negative screening required.
- Based on evidence of company actions, and not just words.
- Offer potential for significant investment returns.
- Acorns have the potential to disrupt the status quo and make meaningful improvements to sustainability.
- Core companies have developed businesses, have reached profitability and in most cases pay dividends.
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Ongoing Scrutiny
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- We meet or speak to senior company management at least once a year
- Daily overview of company news and analyst commentary
- Assess company plans for growth and likely impact on Business Relief qualification
- Watchlist of further AIM companies is maintained as potential new portfolio holdings
- Stocks can be quickly added/replaced in the portfolio, especially where Business Relief qualification is threatened
- We engage the services of a third-party tax adviser who annually assess all AIM companies held in our portfolio for Business Relief qualification.
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