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.