Welton ESG Advantage
Multi-Strategy ESG
We believe ESG Investing is the single greatest theme of the next 20 years representing a generational shift in preference for capital impact. We also believe that the ESG improvements must be better, that ESG investment outcomes must be better, and that investment risks that imperil ESG portfolios are investing sustainability risks and must be better.
Welton ESG Advantage seeks to deliver:
- Real ESG Advantage – measurably better ESG scoring than the S&P 500
- Return Advantage – returns materially greater than the S&P 500
- Downside Advantage¹ – potential for less downside risk than the S&P 500
- Risk Advantage – superior risk adjusted returns than sustainable fund universe
¹ Downside Advantage is defined as positive performance provided through the diversifying properties offered by the diversifying trend strategies, which are meant to offset losses incurred by the active equity portfolio during equity market correction periods. By design, the diversifying trend strategies are constructed to be uncorrelated to the active equity portfolio over reasonable holding periods, however, performance correlations may periodically rise over shorter time periods. There is no guarantee that diversifying trend strategies will prevent against losses from the active equity portfolio. Moreover, investors may experience greater losses due to the inclusion of the diversifying trend strategies.
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Our Sustainability Investing Pillars
We believe investment results drive ESG investing sustainability goals
- ESG investors want to drive change through capital impact
- Better results attracts more capital driving higher relative valuations that incent management and governance decisions
- Portfolios weighted toward better scores and improving scores drive greater capital impact
We believe investment risks are ESG investing sustainability risks
- Investment risks endanger the primary ESG mission
- Risks to ESG investors’ capital reduce its size and imperil the momentum of drawing more capital to the cause
- Inflation, monetary, currency, volatility, asset valuation and other major risks must be sustainably mitigated
We believe ESG investing’s positive impact is magnified by addressing results and risk
- Through data-driven, active management
- Using the best of technology and machine learning combined with investment team experience
- Diversify investing beyond equities alone and into multi-asset class ESG for effective diversification and risk mitigation
Unified ESG Driven Approach
Unified ESG Approach
- Unites all sectors and asset classes
- Rewards sustainability through better ESG scores and positive ESG momentum
- Accommodates long-short strategies
Created the ESG Framework for Global Multi-asset
- Published original research solving for the absence a Multi-asset global ESG scoring system using the World Bank Sovereign ESG Framework
- Calculates objective sovereign ESG scores for FX, Fixed Income, Equity Index and Commodities
- (Click here for overview)
Solved Investors’ Challenge of Different ESG Scores
- Published original research on combining multi-sourced ESG scores based on differing methods
- Allows full portfolio scoring measures through time
ESG scores at the end of Q1 2023. The Welton ESG Score quantifies the sustainability of a portfolio’s positioning at a given point in time. It utilizes a quantitative transformation to standardize ESG scores issued by different sources or methods for both the ESG score of the individual instrument and the full portfolio.
Welton Performance Awards
Welton Investment Philosophy
We believe that focusing on a portfolio of recurrent market events, harnessing well-researched team insights, and applying rigorously tested mathematical models, leads to superior absolute return opportunities fit for all market environments.
Portfolio Construction
Primary Active ESG Equity
- Maximizes portfolio sustainability through ESG-driven allocation
- Active daily management from universe of 500 US mid-large cap equities securities
- Excludes exposure to issuers with the lowest ESG scores AND weapons, tobacco and fossil fuels
- Scales exposure to those securities with stronger and improving intra-sector ESG scores
- Quantitatively invests on signals weighing risk exposure and expected return contribution
Multi-asset ESG
- Maximizes portfolio sustainability through efficiently mitigating major portfolio risks
- Active daily management of exchange traded futures covering materials inflation, global equity betas, interest rate levels, and currency flows while excluding exposure to markets with the lowest ESG scores AND fossil fuels investments
Pie chart reflects actively traded markets and gross sector allocations as a percentage of total targeted portfolio volatility. Range of risk budgets is based on actual historical data and is included for illustrative purposes only. The characteristics of the program(s) described in this material are sought during the portfolio management process. Actual experience may not reflect all these characteristics or may be outside of stated ranges.
Curious About Our Performance?
Complete the form to receive a current fact sheet via email.
Care to Learn More?
Complete the form and we’ll be glad to answer your questions and/or arrange a time to speak.
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The information contained herein is not for retail investors but intended for use by institutional and professional investors including “Qualified Purchaser” within the meaning of the 1940 Act which also qualifies it for the status of “Qualified Eligible Person” under CFTC Regulation 4.7. Alternative investments are speculative, involve substantial risks and are not suitable for all investors. This information is not a solicitation for investment. Such investment is only offered on the basis of information and representations made in the appropriate offering documentation. Past performance is not necessarily indicative of future results. Welton Investment Partners LLC is a Delaware limited liability company that provides investment advisory and day-to-day operational services previously assumed by Welton Investment Corporation, its predecessor, which itself merged from a California corporation originally formed in 1988.
