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Perth Tolle on the freedom of investing

Formerly the vice president of Amplify ETFs and previously an account executive at Fidelity Investments, in 2014 Perth Tolle founded Life + Liberty Indexes, which specialises in freedom-weighted equity index strategies based on human rights and economic freedom. For Tolle, the importance of using metrics that focus on personal and economic freedoms drives her investment philosophy.

“This is important because emerging markets there's so many autocracies or countries just coming out of autocracies. With a market capitalisation-weighted approach, you get a lot of allocations and concentrations in autocratic countries,” Tolle recently told Opto Sessions.

“That's typically not what the average investor is looking to do,” she continued. 

Tolle realised that the way around this is to focus on freedom weighting instead. 

“We end up with higher weights in the freer markets, lower weights in the less free markets, and the worst offenders, as far as personal economic freedoms go, are excluded altogether.”

Furthermore, Tolle believes that there are some inherent factors in such strategies that could promote long-term outperformance. She thinks that ESG strategies, and strategies like hers, act as a behaviour hack for investors. “If you're invested in something that you truly believe in and that you have a deep conviction about — something like freedom — then you're going to be more likely to stick to it when times are bad,” Tolle said.

“We did see that get tested this year,” Tolle said, explaining that even in the brutal first quarter of 2020, she did not see any redemptions.

“Sticking to it is what I think in the end will cause that better outcome for investors more than any of these other factors,” Tolle suggested.

 

To hear more about Tolle’s investing philosophy, and how she looks to invest, listen here:

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Listen to the full interview and explore our past episodes on Opto Sessions.

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

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