The Thesis

Modern Portfolio Theory and traditional financial analysis is insufficient. To satisfy today’s investor and create thoughtful portfolios that support meaningful change, a new multi-dimensional approach to “value” is required. The largest component of a publicly traded company’s balance sheet is its intangible value. Only through thoughtful management of Human Capital, policies around Sustainability and proactive Societal Engagement can a company truly harness the power of its intangible value. Work Capital leverages a proprietary 400 Factor Model in order to evaluate the environmental, social, and governance performance of each company in order to uncover competitive advantage and value.

The Framework

 
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Human
Capital

Wage Policies
Benefits and Opportunities
Advancement, Training  and Retention
Demographics
Supply Chain Engagement
Inclusion Policies
Ownership Practices

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Environmental Stewardship

Emissions, Effluents and Waste Reduction Programs
Energy Mix/Efficiency
Material Sourcing
Packaging
Water Intensity
Supply Chain Engagement

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Community
engagement

Community Investment
Corporate Philanthropy
Employee/Community Support
Policies on Impact
Facility Location
Supply Chain Engagement

 
 
 

Work Capital strives to deliver institutional quality U.S. Equity portfolios with impact and financial alpha, by leveraging our proprietary quantitative impact scoring framework. Work is attempting to shatter perceptions and notions that impact investing is qualitative and return reducing. Through insightful and rigorous analysis, wrapped inside a repeatable and scalable framework Work Capital strives to be the answer that thoughtful investors have been seeking. In addition to best in class All Cap and Large Cap strategies, Work Capital has five thematic strategies for investors with specific focus areas. The foundation of our proprietary 400 factor framework are these three pillars:

Work Capital strives to deliver institutional quality U.S. Equity portfolios with impact and financial alpha, by leveraging our proprietary quantitative impact scoring framework.

FLAGSHIP STRATEGIES

SEVEN THEMATIC EQUITY STRATEGIES

LARGE CAP/ALL CAP STRATEGIES

The Work Capital Large Cap/All Cap Strategies begin with all the companies in the S&P 500/S&P 1500 and reviews 400 propriety quantitative social and environmental raw data points and aggregates the data into two distinct sections: policy review, to measure corporations’ policies and disclosures, and performance, as it relates to their published policies. That data is then further divided into the three pillars, human capital, environmental stewardship, and community engagement. Once the list of socially and environmentally approved companies has been determined to be fundamentally attractive, an optimizer is utilized for portfolio construction.

GENDER EQUALITY STRATEGY

The Work Capital Gender Equality Strategy analyzes corporations’ policies and actions around equality, fair pay practices, diversity and inclusion and social and economic justice. The result is a U.S. equity portfolio comprised of high quality securities that have been positively screened and quantifiably identified as best-in-class in terms of consistency with principles of equality and economic security criteria per our multi-factor model. The model is designed to review corporations for management practices relating to equality, social justice, anti-discrimination, labor practices, and negative media portrayal of women and girls.

GREEN / EX-FOSSIL FUELS STRATEGIES

The Work Capital Green and Green Ex-Fossil Fuels Strategies analyze corporations’ policies and actions around promoting a sustainable environment where humans and the natural world are in balance. The process selects companies with a strong commitment to measuring, reporting, and reducing their environmental impact, particularly in the areas of: carbon footprint reduction and mitigation, energy and resource efficiency, clean technology and renewable energy, recycling corporate waste, and land preservation. The Green Ex-Fossil Fuels Strategy does not hold companies that extract and/or use carbon to produce energy.

FAITH FOCUSED STRATEGY

The Work Capital Faith Focused Strategy analyzes corporations’ policies and actions for consistency with the tenets of religious faith. The investable universe is reviewed for compliance with faith-based values, such as: protecting human life, promoting human dignity, reducing arms production, pursuing economic justice, protecting the environment, and encouraging corporate responsibility. This list of Faith Focused companies is then screened for traditional fundamental characteristics and is constructed using an optimizer with rigorous rules based rebalancing and sell discipline guidelines. The portfolio can be customized to align with specific client’s faith directives whether it be the avoidance of certain sectors or products or the embracing of practices and attitudes that are reinforcing of the faith based principles.

SOCIAL JUSTICE STRATEGY

The Work Capital Social Justice Strategy analyzes corporations' policies and actions around equality, social justice, and the demonstration of support for diverse communities. The result is a U.S. equity portfolio comprised of high quality securities that have been positively screened and quantifiably identified as best-in-class in terms of consistency with social justice criteria according to our multi-factor process. The model is designed to review corporations for management practices relating to equality, social justice, anti-discrimination, labor practices, and support for LGBTQ rights.

WHAT IS ‘GOOD’ OR ‘JUST’ CAN OFTEN BE IN THE EYE OF THE BEHOLDER. AT WORK CAPITAL, WE DON’T MAKE VALUES JUDGEMENTS IN OUR PORTFOLIOS. RATHER WE USE OUR PROVEN PROCESS AND 400 FACTOR ANALYSIS TO MEASURE A COMPANY’S PROSPECTS FOR FUTURE GROWTH BASED ON NON-FINANCIAL FACTORS. WHAT IS IMPORTANT TO OUR CLIENTS IS THEN EMPHASIZED THROUGH CUSTOMIZATION OR A CHOSEN THEMATIC STRATEGY.
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LARGE CAP/ALL CAP

Human Capital
Sustainability
Community Engagement

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FAITH FOCUSED

USCCB
Principles of Faith
Religious Consistency

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GENDER EQUALITY

Wage Parity
Workforce Composition
Gender Policies

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SOCIAL JUSTICE

Human Rights
Diversity and Inclusion
LGBTQ Policies

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GREEN / EX-FOSSIL FUELS

Sustainability
Environmental Policies
Inputs, Throughputs, Outputs