A universe of potential portfolio holdings is created by 3D Investing powered by Square Mile. Each holding is then rigorously tested for and ranked using such criteria as ESG (Environmental, Social and Good Corporate Governance), Positive social impact, transparency and financial track record.

The universe is then allocated a 3D certification which verifies that the fund meets a set of minimum standards. These include:

• Purpose – clear, well-reasoned strategy
• Resource – ability to deliver strategy
• Evidence – claims match reality

The universe, with star ratings, is passed to a separate, experienced portfolio manager.

The Portfolio Manager, separately researches the universe presented to him by 3D investing using a traditional efficient frontier modelling process. The holdings are chosen to maximise their impact rating, whilst also fitting with appropriate asset weightings for volatility ranges set by Pennine Wealth Solutions

The portfolios are then back tested over a 20yr period to stress test the portfolios performance in various market conditions, and the result is a range of strategic models.

These strategic models are then overlaid with a tactical asset allocation view using multiple inputs such as third-party research, respected fund manager views, and industry knowledge.

The final result is a range of 7 portfolios suited to investors from medium to high risk tolerances, in the knowledge the portfolio manager will run the portfolios on the basis of a hard ceiling (must not go above a certain volatility) and a soft floor (happy to take less risk for the same equity market returns).