Your investments can make a huge impact on the world. From developing climate technologies to building equitable company cultures.

The aim of the GOODFOLIO screening process is simple and threefold:

‍Limit operational risk
‍We aim to limit as many risks as we can for our users. That goes from risk of liquidation to making sure funds are compliant and appropriate for retail investors.
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Increase data transparency
‍We want to make sure that you are enabled to make better informed decisions when it comes to both financial and non financial aspects of investing. We work to promote that by inclusion of funds that enable us to offer you transparency.
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Reduce chance of greenwashing
‍We reduce the chance of greenwashing and impact-washing by filtering for sustainability credentials and information availability for funds.

To summarise, our aim is to enable informed decision making whilst increasing user control and agency. Our screening process does not seek to promote, advise or recommend.

Where possible, we aim to include all funds that meet these criteria, and monitor the market continuously for potential inclusions as well as changes in the ESG credentials, sustainability standards and regulations.

Don't forget, as always with investing, your capital is at risk.

1. Compiling the funds
We start by compiling a list of thousands of funds capturing those that suggest they are managed with sustainable, environments, social or governance issues in mind.

2. Reducing greenwashing
We then review the company and product information linked to each fund, checking each offering's responsible investment credentials in order to reduce the chance of “greenwashing”. We work with financial data providers such as S&P, as well as LSEG and Asset Managers' own documentation to make sure that all funds comply with Sustainable Finance Disclosure Regulation (SFDR). That means they are either categorised as SFDR 8 or 9 funds. We check that each fund is offered by an organisation that is a signatory to the UN Principles for Responsible Investment (PRI).

3. Ensuring transparent data
We check that each investment product (in case of equity ETFs) provides transparent data on their underlying holdings and that we can map and provide the following sustainability information: Greenhouse gas intensity or UN Sustainable Development Goal (SDG) revenue-alignment data.

4. Filtering by operational criteria
We filter investments based on a number of operational criteria, including:
- Pricing data: all investment products must be priced in pounds Sterling
- Tradability: all investment products must be available for trading on the London Stock Exchange
- Appropriateness: all investment products must be UCITS and MiFID II compliant
- Size: each investment product must have a minimum of: £10 million in assets under management for equity ETFs; and £50 million in assets under management for fixed income ETFs - additional checks on near minimum sizes
- Data availability: including near full transparency over underlying holdings for equity ETFs.
- Cost: total expense ratio below 65 basis points p.a. (0.65% p.a.) - additional checks on near max fees to avoid investments with higher-than-average fees.
- Physical or synthetic: Investment products where the majority of the underlying assets are either equity or bond securities, as opposed to derivative instruments

‍5. Third party checks
In conjunction with GOODFOLIO’s investment screening process, we work with our regulatory and trading partners to perform a series of independent compliance and risk checks on all investment products, prior to being made available to GOODFOLIO users