Low carbon or no carbon? The energy trade-off
23 July 2019|6 min
Fossil fuels are widely blamed for climate change. Should we exclude companies that own fossil fuels entirely from socially responsible investments? This blog looks at the methodology employed in Nutmeg’s socially responsible portfolios and what this means for carbon exposure.
What can your portfolio do to tackle climate change?
9 July 2019|4 min
Sweltering heat in the south of France, the worst drought in living memory in parts of India, and the insidious retreat of ice floes and glaciers. As one Spanish meteorologist put it, while anticipating Europe’s recent heatwave, “Hell is coming.”
Our commitment to transparency
3 July 2019|1 min
You may be following the story of the suspended Woodford Equity Income Fund. As expected, the fund is not yet ready to reopen, which means investors still cannot get their money back. We think the fiasco reveals many things that are wrong with the traditional fund management industry. One of them is that investors in funds such as Woodford’s are often not told exactly what they are really invested in or whether those holdings are liquid (in other words, whether the holdings are easy to buy and sell).
Woodford investors expect their money back in July – they are unlikely to get it
27 June 2019|4 min
Investors in the suspended Woodford Equity Income Fund are hoping it will reopen and that everyone who wants their money back will get it straight away. Unfortunately, we doubt that will happen. Moreover, we would argue that the fund . Here’s why.
Liquidity: what went wrong with Woodford and why we are different
21 June 2019|7 min
The debacle over the suspended Woodford Equity Income Fund has focused investors’ attention on the issue of liquidity. This is a financial term that describes the ease with which an asset can be bought and sold (liquidated). The Woodford fund, like many others, promised daily liquidity.
After a turbulent May, are equities cheap?
13 June 2019|3 min
A revival of trade tensions between the US and China unnerved investors and prompted selloffs in stock markets in May. Some equity investors suffered losses that offset or even exceeded the gains made during a rally in the first quarter. Though this is bad news for those who have lost money, some new investors might see this month as a chance to buy stocks at attractive prices. Are equities cheap? Let’s look at the evidence.
Active funds: ‘Facts’ vs the evidence
26 April 2019|7 min
There is a battle raging in the fund management industry. Active fund managers, those that pick individual securities in an aim to beat the market , like the UK stock market, are at war with the ‘passive’ fund industry. Passive funds use rules-based systems to invest, such as weighting the amount held in each company based on its size, usually at an incredibly low cost. In recent years, money has been flowing out of active funds and into passive funds, nevertheless the amount of money held in active funds is still many times greater than in passive funds – about seven times greater in the UK retail fund industry for instance .
Drip-feed your cash into the markets – why you might want to use our new feature and how to set it up
15 April 2019|5 min
Not quite ready to invest at the moment but want to secure your 2023/23 ISA allowance early to help maximise your long-term returns? Our new feature gives you the chance to hold money in cash within a stocks and shares ISA wrapper until you’re ready to invest it. When you’re comfortable, you can invest it all at once, or drip-feed your money into the markets month-by-month. Here, we explain why drip-feeding can be a sound investment strategy and show how new and existing customers can set it all up.