“Real success can only come if there is a change in our societies and in our economics and in our politics.”

Sir David Attenborough

Aim of Portfolio

The portfolio looks to deliver a return of between 6% and 8% gross over the long term. This should, in a normalised environment, be above the higher rate of cash or inflation.

About the Portfolio

The name, Positive Impact Portfolio, reflects a desire to achieve positive outcomes for the environment and society without sacrificing returns.

To this end, we build the investments first; whether they fall into the ethical, sustainable or impact bucket is almost irrelevant. We take a blended approach to deliver the best outcomes and the chart below shows the current split between buckets in our Cautious Positive Impact Portfolio.

More details on our approach can be found here

Making a difference

We use analysis from BlackRock for the portfolio. The latest data is shown below based on the holdings as at 1 July 2023.

Split by funds within the Portfolio (as at 1 July 2023)

Fund NamePercentage Holding
Fixed Interest
Rathbone Ethical Bond Fund6.75%KIID
Aegon Ethical Corporate Bond Fund6.75%KIID
Brown Advisory Global Sustainable Total Return Bond Fund5.50%KIID
Alternatives
Greencoat UK Wind PLC7.50%Documents
The Renewables Infrastructure Group Limited7.50%Documents
JLEN Enviromental Assets Group Limited7.50%Documents
Ecofin Global Utilities and Infrastructure Trust10.50%Documents
VT Gravis Clean Energy Income Fund7.50%KIID
Equity Exposure
Premier Miton Responsible UK Equity Fund3.00%KIID
Royal London Sustainable Leaders Fund3.00%KIID
Abrdn Europe ex UK Ethical Equity Fund3.00%KIID
Liontrust Sustainable Future European Growth Fund3.00%KIID
Legg Mason ClearBridge US Equity Sustainability Leaders Fund6.00%KIID
Baillie Gifford Positive Change Fund3.00%KIID
Ninety-One Global Enviroment Fund3.00%KIID
Regnan Global Equity Impact Solutions Fund3.00%KIID
Sarasin Responsible Global Equity Fund3.00%KIID
LF Montanaro Better World Fund3.00%KIID
Alquity Asia Fund5.00%KIID
FP Carmignac Emerging Markets Fund5.00%KIID

Split by funds within the Portfolio (as at 1 July 2022)

Fund NamePercentage Holding
Fixed Interest
Rathbone Ethical Bond Fund6.75%KIID
Aegon Ethical Corporate Bond Fund6.75%KIID
Alternatives
Foresight Sustainable Real Estate Securities Fund5.50%KIID
The Renewables Infrastructure Group Limited6.75%Factsheet
Foresight Global Real Infrastructure Fund6.75%KIID
Civitas Social Housing Plc5.50%Factsheet
Home REIT5.50%Factsheet
Newton Sustainable Real Return Fund6.75%KIID
VT Gravis Clean Energy Income Fund6.75%KIID
Equity Exposure
Premier Ethical Fund3.00%KIID
Royal London Sustainable Leaders Fund3.00%KIID
ASI Europe ex UK Ethical Equity Fund3.00%KIID
Liontrust Sustainable Future European Growth Fund3.00%KIID
Legg Mason ClearBridge US Equity Sustainability Leaders Fund6.00%KIID
Sarasin Responsible Global Equity Fund3.00%KIID
Baillie Gifford Positive Change Fund3.00%KIID
Ninety-One Global Enviroment Fund3.00%KIID
Regnan Global Equity Impact Fund3.00%KIID
Montanaro Better World Fund3.00%KIID
Alquity Asia Fund5.00%KIID
Carmignac Emerging Markets Fund5.00%KIID

Portfolio Review

Quarterly Portfolio UpdateApril 2023
Quarterly Market UpdateApril 2023
FE Analytics Overview April 2023
Quarterly Portfolio UpdateJanuary 2022
Quarterly Market UpdateJanuary 2022
Morningstar Quarter 4 2022 Portfolio Overview January 2022
Quarterly Portfolio UpdateOctober 2022
Quarterly Market UpdateOctober 2022
Morningstar Quarter 3 2022 Portfolio OverviewOctober 2022
Quarterly Portfolio Update July 2022
Quarterly Market UpdateJuly 2022
Morningstar Quarter 2 2022 Portfolio OverviewJuly 2022

Risk and benchmark performance of Portfolio

Key points

  • The investments include exclusionary policies which means certain sectors will not be held within the portfolio.
  • The strategy invests across ethical, sustainable, responsible and impact investments. This will include investment trusts.
  • The strategy has a higher weighting to fixed income and alternatives compared to the balanced and adventurous portfolios.
  • The benchmark is the Royal London UK FTSE4Good Tracker Trust.
  • We consider the long term as 10 years plus.

For more information click here

What is the benchmark

We use the Royal London UK FTSE4Good Tracker Trust. The FTSE4Good Index is a series of ethical investment stock market indices launched in 2001 by the FTSE Group. The index excludes companies due to their involvement in tobacco production, nuclear weapons, conventional weapon systems, or coal power industry and rates companies for inclusion based environmental sustainability, relationships with stakeholders, attitudes to human rights, supply chain labour standards and the countering of bribery. Example holdings include Unilever, AstraZeneca, HSBC Holdings, Diageo, and GlaxoSmithKline. This is an evolving area, and we believe this to be the closest match.

Performance:

The Portfolio was launched on 1 July 2020. The chart shows the total return up to 31 March 2023.

 Total Return Since LaunchAnnualised Return Since Launch
Cautious Positive Impact Portfolio2.04%0.74% p.a.
LWM Benchmark33.53%11.10% p.a.
 202120222023Since Launch
Cautious Positive Impact Portfolio9.06%-17.17-0.17%0.74% p.a.
LWM Benchmark16.24%1.15%3.83%11.10% p.a.
 1 Year to 31/03/221 Year to 31/03/23
Cautious Positive Impact Portfolio3.10%-12.60%
LWM Benchmark12.79%2.70%

Volatility

You should note that past performance is not a reliable indicator of future returns and the value of your investments can fall as well as rise. The total return reflects performance without sales charges or the effects of taxation, but is adjusted to reflect all on-going fund expenses and assumes reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the performance quoted would be reduced.

Important notes

Performance

The performance for the portfolio is based on the previous holdings for the portfolio. Data for performance is sourced from Morningstar. These figures are provided to give an indication of the performance of the Portfolio. The performance figures take into account all fund / asset charges but do not reflect any additional charges, for example the cost of the investment plan and fees paid to LWM. These expenses may reduce the actual figures shown.

As an example of how this will impact on the performance, assuming the total gross cost of the Portfolio is 0.79% p.a. (this is reflected in the performance figures shown), then after rebates and reflecting any fees payable to LWM Consultants the actual cost of this portfolio could be 2.19% p.a. (on a fund of £100,000 this would be £2,190 p.a.). This means that the drag on performance is around 1.40% p.a. (on £100,000 this is around £1,400 p.a.). The cost of accessing the funds may be higher via other routes and will include additional fees, the estimate is based on the highest charge via a SIPP and for other investments the charge will be lower. Charges may also reduce depending on the size of the assets held.

You should note that past performance is not a reliable indicator of future returns and the value of your investments can fall as well as rise. LWM only invests in UK based investments although some funds / assets may have overseas holdings, the performance of funds / assets where some holdings are denominated in foreign currencies will also be subject to variations in currency rates.

Factsheets

These factsheets are provided by third parties for information. LWM is not responsible for these factsheets, has not reviewed them, and accepts no liability in connection with your use of them or any of their content. These factsheets display the fund manager’s standard retail charges and please note that product charges and fees may replace the charges displayed.