Investment Process

Investment Philosophy / Investment Process / Partnerships

GWA creates wealth weighted portfolios by re-weighting all the constituents of an existing market index. The wealth weights are calculated as an average of each company's share of the total net profit, cash flow and book value (shareholders' equity).

No forecasts are made and all calculations are based on latest reported numbers. As the portfolio is long only, negative wealth values are assigned a weight of zero.

Rebalancing is carried out on a quarterly basis to coincide with the FTSE index review schedule and to update the financial data. These wealth weighted portfolios are then indexed by FTSE for distribution and implementation.

For more information on the rules underlying the construction of these portfolio indices, please read the FTSE GWA Ground Rules.