Nutmeg ‘SRI’ JISA advice

Alexland

grumiofoundation said:

Could be time for us bite the higher fees bullet and look at moving towards more active management in emerging markets if we want to be ‘ethical’…

We touched on this in the recent China correction thread but it is so hard to know what to do with emerging markets as they never seem to deliver the enhanced returns that people have always been expecting and such a high proportion is in a country that doesn't even allow proper control or ownership of the assets. So owning emerging markets seems to be a combination of not wanting to miss out on something that might be good and a desire to be as complete as possible for diversification. How does that link back to our individual investor objectives of just getting a good return on our money? We could probably do that by sticking to developed markets as many global companies operate in emerging markets anyway. We hold 10% of our investments in a workplace pension EM fund but I am increasingly mindful to switch away when the price next looks good.

MX5huggy

bpk101 said:

Do you think adopting this manual 9:1 split between the Vanguard ESG Developed World and ESG Emerging Markets All Cap Index funds through Fidelity would be a good strategy to get started with for my sons JISA? 

It adds a bit more risk - so potentially more reward - than opting solely for the Developed World fund alone and will (I hope) offer me an easy entry point to investing and allow me to track the progress of 2 different funds to see how they compare as I learn more about investing. 

Or is a 9:1 split creating more complexity than is helpful for a beginner? 

Seems reasonable if you want something to do.

You need to know your plan to maintain your 9:1 balance.  I do something similar with my equity vs bonds in my ISA, I’ve settled on 75/25 whenever I invest I restore the 75/25 balance this means I have to buy more of the one that has under performed in the last period, (say new investment is split 70/30) which feels counter intuitive. Then I have a rule that if this is not enough and the ratio goes either way by 5% or more I will buy and sell to restore the ratio. Again you will sell the one that  has performed better and buy the one that has underperformed. But this forces me to buy low and sell high.

We’re not adding significant money to JISA’s while we have our own ISA allowance available, there’s no real advantage of the JISA product apart from the lack of platform fee with  Fidelity over Vanguard direct (0.15%). And then there is the risk of 18  year olds receiving large sums of money. 

bpk101

bpk101 said:

What's the difference between the ESG Developed World All Cap Equity Index Fund and the ESG Developed World All Cap Equity Index Fund (UK) versions of this fund. Would i need to choose the (UK) version if investing from the UK?

Just returning to this question as i've noticed the non-UK version (ISIN IE00B76VTN11) lists a total fund size of £1.93bn, whilst the UK version (ISIN GB00BLLZQL34) lists a total fund size of £252.11m. Also, the buy/sell price listed for the non-UK version is almost 3 times that of the UK version. 

Are these definitely the same fund as some have suggested and does it really not matter which one you select?

It's the fund i'm interested in and i want to make sure i'm choosing the right one. 

Alexland

The fund domiciled in Ireland was launced in 2011 so has had longer to accumulate growth causing the unit price to be higher. I guess Vanguard could have launched the UK version at the same unit price but that's not what their policy was. It makes no difference if the unit price is 3 times higher as the assets will be 3 times higher so you are getting the same value for your money. They are not the same fund but they are tracking the same index so the performance will be very similar.