Investment science and approach: Aligning financial growth with meaningful impact
At Path, we are driven by a mission to align financial growth with meaningful impact.
Our investment approach is grounded in the belief that managing money with purpose leads to both superior financial returns and positive change in the world. We are committed to delivering strong financial performance while supporting our clients’ values and goals.
Aligning financial goals with impact priorities
Our portfolios are managed with a dual mandate: aligning investments with our clients’ financial needs while driving meaningful, measurable impact. We believe that true impact lies in how money is managed, and carefully select investment managers who share this ethos.
Our primary duty as financial advisers is to ensure that financial return objectives are met. This means we must act in our clients’ best interests, with fiduciary duty as our guiding principle, while supporting their values and making a meaningful contribution to the world. Every investment decision is made with careful consideration of risk, return, and the broader societal and environmental impact.
Blending investment science with impact
Our investment approach combines financial returns with measurable impact, and is built on sound investment principles, backed by data and analysis.
A key element of our strategy includes a bias towards small-cap and growth style companies. These businesses are often at the forefront of innovation, addressing pressing environmental and social challenges. Allocating capital to companies with sustainable practices may lower their cost of capital by improving their credit ratings, making it easier for them to raise funds through equity or debt. We also incorporate labelled bonds into our impact portfolios. These bonds are designed to fund projects with clear environmental or social objectives.
We believe the greatest potential for impact lies where the most harm is being done. Through active stewardship, including engagement and proxy voting, we aim to influence companies’ corporate governance and promote long-term sustainable practices.
Through this dual focus on achieving long-term capital growth and transformative impact, we construct portfolios that maximise both market potential and positive change.
Navigating market dynamics with resilience
Global markets experience heightened volatility, caused by inflation, fluctuating interest rates, and geopolitical tensions. These factors have created significant challenges for all asset classes, particularly small-cap and growth companies and fixed income instruments, often overweight in impact portfolios. This environment has tested the resilience of holdings that aim to balance long-term innovation with near-term economic pressures.
To address this uncertainty, we adopt a robust approach designed to weather economic volatility. By adjusting bond duration, and sectoral, thematic, and geographic exposures, we ensure portfolios remain adaptable to changing market conditions. Our rigorous, data-driven process enables us to continuously monitor risks and opportunities, reinforcing resilience and positioning portfolios to capture long-term growth while staying aligned with our impact objectives.
Driving innovation with continuous research
Our research-driven approach ensures that we remain at the forefront of innovation, continuously enhancing our investment processes. By staying ahead of market trends, regulatory changes, and sustainability challenges, we strive to deliver the highest possible impact for our clients while achieving their financial objectives. This relentless pursuit of excellence is at the heart of our mission to deliver superior value for our clients, while also contributing to the broader societal and environmental progress needed in an ever-changing world.
By combining sound investment principles with a commitment to societal and environmental progress, we create portfolios that deliver both financial and transformative value. Through continuous research and innovation, we remain dedicated to helping our clients achieve lasting success in an ever-evolving global landscape.
A COLLECTIVE CALL FOR CHANGE
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RISK WARNING
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.