But our research shows no meaningful differences in the long-term between the performance of portfolios that incorporate an SRI focus, and those that don’t. 552016, registered in England and Wales, no. We’ve taken the first step towards being transparent about the sustainability of your investments, but as we continue to evolve our approach, we want to start a broader conversation about how to make socially responsible investing work the way investors want it to. Tax treatment depends on your individual circumstances and may be subject to change in the future. In theory, the premise behind socially responsible investing is simple – invest in line with your values and beliefs. We'll assume you're ok with this, but you can opt-out if you wish. It’s little surprise then that socially responsible investing (SRI) is proving an increasingly attractive option. Financial advice also available. Ultimately, how you choose to invest your money is up to you – we’re here to empower your decision making. The underlying ETFs are ethical and socially responsible. When it comes to planning ahead, we’re seriously lacking…. Most people have favourite charities they donate to regularly, and causes they care about deeply. Traditionally there has been a focus on minimising exposure to fossil fuels and environmental issues – which likely influenced the proliferation of labels like ‘green investments’. Our own study1shows that even before the coronavirus emerged, social responsibility was a big factor in many people’s investment decisions. Nutmeg is a discretionary manager, but investors can also access financial advice. Nutmeg® is a registered trade mark of Nutmeg Saving and Investment Limited, authorised and regulated by the Financial Conduct Authority, no. Not just our new socially responsible portfolios, but all of our portfolios. ISA and pensions calculators available. On the other hand, more women care about employees’ working conditions than men, at 40% versus 32%. One in three investors told us they were ‘very likely’ to change their portfolio – even one providing returns – after finding they were invested in companies with a poor track record on social issues. Past performance is not a reliable indicator of future performance. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest. Investors start by selecting the account type, how much and how long they want to invest for. Nutmeg is the most established robo-adviser in the UK. As part of our new approach, we’ve signed up and committed to the United Nations’ sponsored Principles for Responsible Investing. At Nutmeg, we’re using the term socially responsible investing (SRI). It is mandatory to procure user consent prior to running these cookies on your website. 2. 07503666, with a registered office at 5 New Street Square, London, EC4A 3TW. This confusion over what’s in a fund, and what’s not, and the lack of information about the social impact of investments can lead some people to feel they can only invest in schemes that have a very clear and narrowly defined goal – like investing in a clean energy plant. Commenting on the findings, James McManus, said: “This research shows that socially responsible investing means something different to everyone. This category only includes cookies that ensures basic functionalities and security features of the website. Learn more ». Only a quarter of investors said they would continue to invest. As with all investing, your capital is at risk. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest. After an extensive period of research in 2015, we decided the time wasn’t right to launch portfolios with a socially responsible (SRI) focus. Employed and self-employed tax calculator, United Nations’ sponsored Principles for Responsible Investing, Find out more about socially responsible investing at Nutmeg, How we developed our socially responsible scoring and portfolios, How and why we score portfolios for social responsibility. This website uses cookies to improve your experience while you navigate through the website. For instance, why does a so-called ‘ethical’ fund hold stocks in tobacco companies, or why does a ‘green’ fund hold companies that sell weapons? As with all investing, your capital is at risk. This shows investors are viewing responsible investment as a way to support the businesses and causes they stand for, in the hope that they will thrive and grow, and go on to do even better. This website uses cookies to improve your experience. Additionally, Nutmeg offers a range of 10 fully managed socially responsible investment portfolios designed for investors who prefer to invest ethically; Alternatively, investors can choose to invest via the Nutmeg Fixed Allocation Portfolios*. Those surveyed were least concerned about executive compensation – the pay that business leaders receive from their companies – with only 4% of women choosing this option, and 12% of men. We offer free, independent and impartial guidance to help you make informed decisions about which investment platform to use. This is especially important for long-term investments like pensions and Junior ISAs, that have the best chance of potential growth as they are typically invested over a long period of time. ... overseen and managed by Nutmeg’s experienced investment team. We believe that most people would choose to apply their personal values to their investments if they could, but with no way to truly understand how ‘ethical’ an investment is, most people simply can’t invest this way. Shaun holds a degree in Mathematical Economics from the University of Birmingham and is a Chartered Alternative Investment Analyst. Mobile apps let you keep track of your portfolios on the go.The Socially Responsible Portfolio is composed of ETFs, but the asset allocation is actively managed to respond and adapt to market conditions and changing trends. Nutmeg – Socially Responsible Portfolio Nutmeg is the most established robo-adviser in the UK. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest. Our straightforward scoring system, powered by data provided by MSCI, gives both SRI and non-SRI investors the best possible sense of how each portfolio aligns with your values, and whether it’s the right investment choice for you. Arguably now more so than ever. Our research highlights investors’ stances towards their own money and investments. Nutmeg® is a registered trade mark of Nutmeg Saving and Investment Limited, authorised and regulated by the Financial Conduct Authority, no. However, there are a lot of different labels – ethical, impact, green, sustainable, to name but a few. Our socially responsible investing (SRI) portfolios and scoring say a lot about what we think investing should be: radically transparent and accessible to all, without costing the Earth.Here we reflect on what went into making them. Ethical investments, good product range, resources and support and active asset allocation a good feature. Necessary cookies are absolutely essential for the website to function properly. Copyright 2020 | Comparetheplatform is a Fundscape UK Ltd brand | All Rights Reserved. Meanwhile, nearly half (44%) said they were unsure of what they would do. 552016, registered in England and Wales, no. For some time now, our customers have been asking us to help them invest in line with their values. Instead, we set out clear criteria that we would need to meet before Nutmeg would launch SRI portfolios. Find a way to demystify socially responsible investing by listening to customer feedback and build portfolios that would allow a broad range of people to invest in line with their values, We would have to be confident that future performance would be comparable to our current managed portfolios, Fund costs would have to be competitive versus our normal portfolios. Despite myths like this, our study shows attitudes towards SRI are becoming increasingly positive; nearly a third of the investors we surveyed said they wouldn’t continue to invest in a company that didn’t behave in a socially responsible way. In light of recent events, many of us are seeing old behaviours in a new light – and that includes investing. Find out more about socially responsible investing at Nutmeg. Once I have money, I will invest in causes I care about.”. Nutmeg scores all of its portfolios against a range of environmental, social and governance factors, such as climate change and renewable energy, privacy and data, and tax transparency – whether they have an SRI focus or not. We know that many of our customers want to invest in line with their values, while still maintaining all the good things we provide, like being able to make contributions on a regular basis and take money out when you’ve hit your goals, in a matter of days, and keeping costs low while diversifying risk across a wide range of investments. There is a minimum investment of £500 for all accounts with a monthly investment of £100 for ISAs and GIAs until the portfolio value reaches £5,000. Next in importance was environmental issues, with 39% of investors saying they’d “likely” change their portfolio if their investments were bad for the environment, for example, funding businesses with heavy carbon emissions, or creating pollution and waste.