Investing
Want your investments to do well and do good?
Here's how
In a nutshell
01
Many investors struggle to find investment portfolios that reflect their personal values and moral convictions.
02
Traditional ethical investments* tended to be either high-risk or focused on impact rather than financial return. *See 'In more detail' below.
03
Our socially responsible portfolios focus on companies with good environmental, social and governance credentials.
04
Bottom line? With Nutmeg, you don’t need to sacrifice diversification, low-cost and liquidity in order to be socially responsible.
The E, the S and the G
We give every Nutmeg portfolio a detailed score against environmental, social and governance (ESG) criteria. This means that if you want to improve the ESG scores for your investments, simply choose the socially responsible investment style for your portfolio. Key issues in each category include:
Environmental
- Carbon emissions
- Water stress
- Climate change
- Pollution and waste
- Renewable energy
Social
- Privacy and data
- Labour management
- Health and safety
- Supply chain labour management
- Controversial sourcing
Governance
- Business ethics
- Board diversity
- Executive pay
- Tax transparency
- Anti-competitiveness practices
In more detail
More and more people are making buying decisions based on their values.
We use industry-leading ESG research and analytics from MSCI (find out more about MSCI in our white paper) to calculate scores for every single one of our investment portfolios against a range of ESG factors. We’ve also used this data, combined with Nutmeg’s investment expertise, to construct ten portfolios with social responsibility at heart, while remaining true to Nutmeg’s investment philosophy. We believe we’re at a tipping point for the widespread adoption of social responsibility focused investments, and we truly believe our portfolios offer investors the best possible current access to ESG themes, while ensuring they remain on track to achieve their investment goals.
The key question is does taking a socially responsible approach mean lower returns?
We think the answer is no. Overall, we expect our SRI portfolios to deliver long-term performance similar to that of an equivalent non-SRI portfolio (but as always, forecasts are not a reliable indicator of future performance).
In other words, a focus on social responsibility doesn’t lead us to expect a performance trade-off for investors. So for once you don’t need to choose between doing the right thing and doing the profitable thing, they can be one and the same.
Nutmeg’s socially responsible portfolios are available for ISAs, including Lifetime ISAs and Junior ISAs, and for pensions and general investments.
If you’d like to find out more about how we’ve done this, our SRI white paper explains everything.
* Investments described as ethical can often include strategies that include direct investments (e.g. an environmental project) or investments with reduced diversification when compared to broader equity & bond markets and may not explicitly seek financial return.
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