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Cash interest explained |
You will receive interest on balances in your platform cash account at the prevailing rate.
Embark Investment Services Limited acts as the custodian for investments on the Willis Owen platform and is one of our strategic partners that provides our Willis Owen ISA, GIA, Junior ISA and SIPP.
Embark places cash with a number of banking partners for safekeeping and to provide the potential for you to earn interest on money in your platform cash account. By managing cash in this way, it aims to provide better protection and a higher overall level of interest than if all funds were placed with a single bank.
The rates of interest paid by banks will vary. Embark retains a portion of the interest earned to cover its costs in managing platform cash.
Current Interest Rate
The table below shows the current customer interest rate payable on cash balances along with the amount of interest retained by Embark. The customer interest rate shown is that after accounting for interest retained by Embark:
| Date From | Customer Interest Rate | Interest retained by Embark |
|---|---|---|
| 25th November 2024 | 2.3% | 1.75% - 2.00% |
Embark can change the rate of interest at any time and it reviews the position at least quarterly. Interest is calculated and accrued daily and is credited to your account on the first of each month. If you transfer out, accrued interest is applied at the point of transfer. We will inform you if and when the interest rate changes as soon as is practicable.
Interest retained
The table below shows the yearly equivalent rates of interest Embark expects to pay based on a range of possible yearly interest rates it may earn.
| Interest Embark expects to earn | Customer Interest Rate | Interest retained by Embark |
|---|---|---|
| 0-1% | 0 – 0.46% | 0 – 0.54% |
| 1-2% | 0.46% – 0.94% | 0.54% – 1.06% |
| 2-3% | 0.94% – 1.46% | 1.06% – 1.54% |
| 3-4% | 1.46% – 2.02% | 1.54% – 1.98% |
| 4-5% | 2.02% – 2.61% | 1.98% – 2.39% |
| 5%+ | 2.61%+ | 2.39%+ |
Historic Interest Rates
To see details of historic customer interest rates, along with the amount of interest retained by Embark, click here.
Equity Styles Explained |
Market capitalisation is an indication of the size of the companies being invested in. It is calculated by multiplying the number of shares issued by the company by the current share price. Market capitalisation is divided into ‘large’, ‘medium’ or ‘small’ according to the below:
Large – Companies that have a market capitalisation greater than $10 billion.
Medium – Companies that have a market capitalisation between $2 billion and $10 billion.
Small – Companies that have a market capitalisation below $2 billion.
Companies can be categorised as ‘value’, ‘blend’ or ‘growth’ as defined below:
Value – Companies that are considered to be trading at a share price below what their fundamentals would suggest.
Blend – Companies that do not exhibit solely value or growth characteristics.
Growth – Typically well-established companies which are considered to have above average prospects for long-term growth.
Equity Regions Explained |
Equity region indicates in which countries the underlying shares within your portfolio are listed.
USA – Companies listed on a stock market in the USA.Canada – Companies listed on a stock market in Canada.
Latin America – Companies listed on stock markets in the Caribbean, Central America and South America, such as Mexico, Brazil and Argentina.
United Kingdom – Companies listed on a stock market in the United Kingdom, Guernsey, Isle of Man and Jersey.
Eurozone – Companies listed on stock markets in countries which have the Euro as their official currency, such as France, Germany and Spain.
Europe ex Eurozone – Companies listed on stock markets in western European countries which do not have the Euro as their official currency, such as Denmark, Sweden and Switzerland.
Europe Emerging – Companies listed on stock markets in European emerging markets, such as Poland, Russia and Turkey.
Africa – Companies listed on stock markets in African countries, such as Egypt, Nigeria and South Africa.
Middle East – Companies listed on stock markets in Middle Eastern countries, such as Israel, Qatar and Saudi Arabia.
Japan – Companies listed on a stock market in Japan.
Australasia – Companies listed on stock markets in Australia and New Zealand.
Asia Developed – Companies listed on stock markets in developed Asian countries, such as Hong Kong, Singapore and Taiwan.
Asia Emerging – Companies listed on stock markets in emerging Asian countries, such as China, India and Thailand.
Equity Sectors Explained |
Cyclical – Companies which operate in industries that are considered to be significantly affected by economic shifts. When the economy is prosperous, these industries tend to expand and when the economy is in a downturn they tend to shrink.
Basic Materials - Companies that manufacture chemicals, building materials and paper products. This sector also includes companies engaged in commodities exploration and processing.
Consumer Cyclical - This sector includes retail stores, auto and auto-parts manufacturers, restaurants, lodging facilities, specialty retail and travel companies.
Financial Services - Companies that provide financial services include banks, savings and loans, asset management companies, credit services, investment brokerage firms and insurance companies.
Real Estate - This sector includes companies that develop, acquire, manage and operate real estate properties.
Sensitive – Companies that operate in industries that ebb and flow with the overall economy, but not severely. Sensitive industries fall between defensive and cyclical, as they are not immune to a poor economy, but they also may not be as severely affected as cyclicals.
Communication Services - Companies that provide communication services using fixed-line networks or those that provide wireless access and services. Also includes companies that provide advertising & marketing services, entertainment content and services, as well as interactive media and content provider over internet or through software.
Energy - Companies that produce or refine oil and gas, oilfield-services and equipment companies and pipeline operators. This sector also includes companies that mine thermal coal and Uranium.
Industrials - Companies that manufacture machinery, hand-held tools and industrial products. This sector also includes aerospace and defence firms as well as companies engaged in transportation services.
Technology - Companies engaged in the design, development and support of computer operating systems and applications. This sector also includes companies that make computer equipment, data storage products, networking products, semiconductors and components.
Defensive – Companies which operate in industries that are relatively immune from economic shifts. These industries provide services that consumers require in both good and bad times.
Consumer Defensive – Companies that manufacture food, beverages, household and personal products, packaging, or tobacco. Also includes companies that provide services such as education and training services.
Healthcare – This sector includes biotechnology, pharmaceuticals, research services, home healthcare, hospitals, long-term-care facilities and medical equipment and supplies. Also includes pharmaceutical retailers and companies which provide health information services.
Utilities - Electric, gas and water utilities.
Product Involvement Explained |
Product Involvement metrics measure the percentage of a portfolio's assets exposed to a range of business areas and activities. For example, if a fund's involvement in Animal Testing is 20%, that means 20% of the fund's assets are invested in companies involved in Animal Testing.
Exposure percentages are calculated by summing the weights of a portfolio’s holdings in the companies involved in each area. In most cases a company is considered ‘involved’ in a certain area if it's revenue from that area exceeds a certain minimum threshold. In other areas, for example animal testing, abortion, contraceptives and human embryonic stem cell research, there is no revenue threshold such that if the company has any involvement at all in these areas, it will be considered involved. If a company is considered involved in an area, the entire weight of that company in a portfolio is counted when determining the overall percentages shown.
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ESG Pillars Explained |
Morningstar's ESG Pillar Scores help investors understand how a fund is performing in three key areas: Environmental (E), Social (S), and Governance (G). These scores break down the overall sustainability risk of a portfolio into these specific categories.
Each score reflects how much environmental, social, and governance factors contribute to the overall risk of companies in the fund. The scores are averaged based on the size of each company in the portfolio. Lower scores mean lower risk.
To receive these scores, at least 67% of the fund’s assets must be rated for their ESG risk. This provides investors with a clearer view of a fund’s exposure to sustainability risks in different areas.
Asset Allocation Explained |
Equity – Often referred to as shares. Shares are units of ownership in a company which entitle the holder to certain rights for example to exercise voting rights or to participate in the company’s profits.
Fixed Income – Often referred to as fixed interest or bonds. When you invest in bonds, you are typically lending money to a company or a government in return for a defined series of interest payments and the promise that a defined value (called the ‘face’ or ‘par’ value) will be returned at a certain point in time
Property – Investments in property include residential, offices, warehouses and shopping centres.
Cash – Money held in cash or cash-like instruments, often to ensure there are sufficient liquid assets within a portfolio.
Other – Contains other investments such as commodities, preferred stock and derivatives.
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Investing doesn’t need to be complicated or difficult, but there are a few fundamentals worth remembering that may help you stay on track to achieve your goals. It is worth reviewing these even if you are an experienced investor. Remember, however disciplined you are, investing involves risk, and you could still get back less than you put in.
Here are our 10 golden rules that we believe every investor needs to know:
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Set your goals - Knowing what your goals are, how much money you need to save and when you need it may help you make the right investment decisions. For example, if you have been investing for your retirement and this is approaching, it may make sense to reduce the amount of risk you are taking with your investments. Or, you may wish to start looking at investments that produce an income. |
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The bigger the potential returns, the higher the level of risk - The prospect of higher returns may be appealing, but it is often accompanied by a greater risk of losing your money. Think carefully about how much risk you want to take but also how much you can afford to take. You may be more comfortable opting for less risky investments, even if returns are likely to be lower. |
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Don’t put all your eggs in one basket - This rule is particularly important. Spreading your money across a range of different assets and geographical areas means you won’t be depending too heavily on one kind of investment or region. So, if some perform badly, other investments might make up for these losses, although there are no guarantees. |
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Invest for the long term - Investing should never be considered a ‘get rich quick’ scheme. We suggest you should invest for at least five years, preferably longer. The longer you invest, the greater chance you are giving your money to grow. |
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Don’t just follow the herd - It can be tempting and easy to just put all your money into the best performing investments of the moment. But while these might be ‘on trend’, they might not be suitable for your risk preferences, or objectives. Falling into this trap can lead to a portfolio that isn’t well diversified or becomes potentially overexposed to one investment style, sector or country. It is important to have a broad range of investments, as predicting where markets will move next is difficult. |
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Don’t invest in something you don’t understand - Before you put your money into any investment, take time to research it thoroughly, so you understand exactly what’s involved and what the risks are. Funds, for example, issue a Key Investor Information Document (KIID), which explains the fund‘s key features and charges. You should read this before you invest. If you’re investing in shares, make sure you know what the company does and how it plans to make money in the future. |
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Don’t overdiversify - Diversification is an important aspect of investing, but you can have too much of a good thing. If you hold too many funds, you reduce the impact any one single investment will have on the performance of your portfolio. Take this to the extreme and you could end up paying a lot in fees just to track an index. We believe you can make a suitably diversified portfolio of between 10 and 20 investment vehicles, but that will largely depend on where each of them invests. Ten funds that all invest in UK mega caps for income, for example, may not offer much in the way of diversification. |
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Reinvesting income can help boost overall returns - If you don’t need an income from your investments, you may want to consider reinvesting it to buy additional units or shares, which will potentially grow in value and boost your overall returns. In simple terms, you can earn income and growth on any income reinvested. This is known as compounding, which we’ve talked about elsewhere on the website. |
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Don’t try to time the market - In an ideal world, you would buy investments just before they increase in value and sell at their peak. However, no one knows which way stock markets will move, so trying to predict the market's ups and downs could mean that you end up buying or selling at just the wrong time. Buying and holding investments can help you remain committed for the long term, avoiding panic decisions when markets are volatile, and regularly drip-feeding smaller amounts into your investments – known as pound cost averaging – can reduce the risk of getting the timing ‘wrong’. |
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Review your portfolio - Too much tinkering with your investments isn’t usually a good idea, but you shouldn’t just forget about them altogether. Your investments will change in value over time which may mean your asset allocation (how you choose to split your money between different assets, such as shares, bonds, cash and property) moves out of line with your investment objectives. That means you may need to rebalance your portfolio from time to time to make sure you’re still on track to meet your goals. |
