Frequently Asked Questions

What is a portfolio risk type?

Risk appetite and risk tolerance can vary significantly between individual investors. We offer three portfolios each carrying a different level of risk (Cautious, Balanced and Adventurous). Equities typically carry more risks than, for example, fixed income or cash over a long-term horizon, but equally they also tend to offer the potential for  higher expected returns. Consequently, individuals with a greater risk appetite, and ability to bear potential loss, would generally seek to invest in portfolios with a higher risk profile (generally with greater exposure to equities). Conversely, individuals with a lower risk tolerance would generally seek to invest in portfolios with a lower risk profile (generally with greater exposure to fixed income).

Can I change the risk type on an existing account?

You can open an account with any risk type that has been matched to your profile in the Clim8 app. If you want to move funds from one risk type to another, you’ll need to get in touch with us by emailing support@clim8.com.

What does “Capital at risk” mean?

Investing in the market comes with exposure to risk, and the risk you can be comfortable with depends on your financial situation, your goals and your individual circumstances. The most important thing to understand as an investor is that the value of your investments can go down as well as up, so you may not get back the amount you originally invested. Thinking of investing as a medium to long-term activity can help you decide how much you want to invest and at what risk level.

What are Clim8’s “sustainable themes”?

Global greenhouse gases emissions come from a handful of sectors which, if decarbonised, can put us on the right track to limit global warming to well below 2°C from pre-industrial levels. That’s why we have tied five of our six investment themes to industries and services that play a critical role in accelerating the transition towards a low-carbon economy such as Clean Energy, Clean Technology, Clean Mobility, Sustainable Food and Circular Economy. Our last theme is Clean Water which is critical to driving economic growth and better healthcare, notably in developing countries.

What is a factsheet?

A factsheet is a document that contains certain key information on our portfolios. It contains information such as investment performance, portfolio holdings, and fee details. It is designed to help you assess the portfolio and understand where your money is invested. We update our factsheets every month, and you can view and download them in the app.

How do you screen companies when selecting them in a portfolio?

Our investment team rigorously researches and screens stocks and funds for inclusion in our portfolios. They consider both the potential performance of the asset as well as the potential impact of the asset on the climate. You can read more about their investment methodology on our How we invest page.

Can I open multiple portfolios?

Yes, you can vary your risk levels and personalise your Clim8 investment to suit your circumstances. You can open one Stocks & Shares ISA with one risk level (Cautious, Balanced or Adventurous) and up three General Investment Accounts, one for each risk level.