Keeping score: The truth about ESG ratings

Written by Anna Fedorova · 20.01.21

As sustainable investing grows in popularity, how can we distinguish truly sustainable companies and funds from greenwashing? To help investors with this question, a growing number of companies offer ratings which rank stocks or funds based on a variety of ESG metrics. However, these ratings can sometimes be more of a hindrance than a help.

ESG funds: Should you pick active or passive?

Written by Anna Fedorova · 02.12.20

So, you have decided you want to incorporate some environmental, social and governance (ESG) principles into your investment portfolio. You have read our guide on the different ESG styles of investing, but now you are faced with a key question: do you choose an active or passive fund? As ever, it all depends on your goals and how much you are willing to pay to achieve them. To help you decide, we take a look at the differences between active and passive ways of investing sustainably and cover some of the pros and cons of each.

What’s so special about specialist funds?

Written by Anna Fedorova · 04.11.20

Once you’ve decided on an asset allocation strategy that suits your plans and expectations, it is time to get more granular within each asset class. There are a number of ways to do this, for example last week, we wrote an introductory piece on Growth versus Value style investing. Another way to mix up your portfolio is to invest in specialist funds to express a particular view on the future direction of markets.

The Goldilocks scenario: What is the optimum size of a fund?

Written by Danielle Levy · 14.10.20

Significant sums of money tend to follow the talented few in the world of investing. For example, six of the UK’s largest funds attracted close to 21% of total net flows during August, equating to £353 million, according to data provider Morningstar. Fund managers can quickly find themselves managing multi-billion pound funds once they have shown they can deliver superior performance and beat their rivals. But is big necessarily best?

ETFs: Investment must-have or the emperor’s new clothes?

Written by Jane Wallace · 08.09.20

Exchange-traded funds, or ETFs, have been trending for a while. Much like traditional tracker or passive funds, most ETFs simply track the ups and downs or a market index or a basket of assets; there’s no human fund manager picking the investments and possibly getting it wrong. Subsequently, it can be easier to understand where your money is invested (the fund does what it says on the tin) and costs can be lower.

Active or Passive investing: Which one should I pick?

Written by Jane Wallace · 30.06.20

Should I invest in a fund managed by a computer or a human being? It’s a common question for investors although the jury is still out on which approach is best. As the debate intensifies in the industry, we dig into the pros and cons of Active and Passive investing and figure out if there is a clear winner or if it’s a case of horses for courses.

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