Boring Money interviews Circa5000!

Sponsored by Circa5000

In June 2022, Boring Money interviewed Tom McGillycuddy, co-founder of Circa5000. This is an investment platform specialising in impact investing (which is investing with the intention of having a positive impact on people and/or the planet).

About Circa5000

• Formerly known as Tickr, Circa5000 is a mobile app offering ready-made portfolios.

• About 80% of its users are beginners.

• The new name is inspired by a world 5,000 years from now.

Q&A with Tom McGillycuddy

1 - How was your brand founded?

Matt Latham and I co-founded Circa5000 in 2019. We met in 2011 on the first day of a Barclays graduate scheme in London. Initially we bonded over our desire to address the financial inclusion issues we saw in the investment management industry, with investing seeming overly complex and reserved for the wealthy.

As our time in the industry grew, we became obsessed with impact investing, and we saw it as the future of the entire industry. As we started working on the idea that eventually became CIRCA5000, we realised that impact investing had the potential to solve the financial inclusion issue we saw in our early careers.

Impact investing is unique because of the framing and narrative behind the investments, and we felt this has the power to unlock a whole new generation of investors.

2 - What's the meaning behind the new name 'Circa5000'?

Our brand is designed to inspire long-term thinking and positive futurism. The investing industry has become saturated with short-term trading and gambling apps that encourage all the wrong behaviours, whilst paying little to no attention to what the companies being invested in are doing in the real economy.

And so CIRCA5000 as a name is intended to inspire people to think long into the future, to the year 5000, investing in companies today that are securing a prosperous future for people and planet.

3 - How would you differentiate your brand from your competitors?

We are the only impact investing app in Europe focussed on the broad spectrum of positive impact, from people to planet. This is the only form of investing we do, and it always will be. The commitment is solidified by us being a B-Corp, the only investing app in Europe to achieve that certification. So when people invest with us, they know they are investing with a company that truly believes in the issues they do, and they can rest assured that we’ll never deviate from this.

4 - Your brand specialises in impact investing, distancing itself from 'ESG' and 'ethical' investing. Why is that?

“ESG” and “ethical” investment strategies are awash with greenwashing. Both of those titles and frameworks are used by the existing asset management industry as a tool to keep doing what they’ve been doing for decades. That’s why you see big banks, big tech and even oil companies in the top 10 holdings of ESG funds.

Impact investing is entirely distinct from those two, and has a completely different starting point: we are actively investing in companies that are directly solving the biggest challenges of our time, and in scaling the solutions that they provide, these companies offer the potential for outsized returns vs the market. That’s why there is a strong returns-based argument to impact investing, whereas with ESG and ethical investing, the returns argument isn’t clear.

5 - What would you say to people who assume impact investing always means lower returns?

I would say that - politely and with respect - they are wrong, and the data shows this.

Like with any form of investing - traditional active investing or impact investing - it’s all in the implementation of the individual strategy. Some traditional investments perform well, and some don’t. The same is true with some impact strategies, but the data shows that certain forms of impact investing can achieve alpha.

That’s why we focus on large-scale, long-term structural shifts in society underpinned by social and/or environmental issues. And we look for companies providing solutions to these issues, using technology to scale their solutions. This is where we see the greatest return potential from impact investments.

6 - What would you say to a cautious investor who's worried about investing when markets are turbulent?

The important thing to remember with investing, is risk is all relative to your time horizon. The greatest investors of all time are the investors with the longest time horizon. And what you see right now is those same investors using the market turbulence as a buying opportunity: they see companies that look cheap compared to where they were a year ago.

And so, if you have a long-term time horizon - which you should if you are investing - then that should reduce your concern when looking to start investing today.

The key with all good investing is to start, be consistent, and hold your nerve when there is turbulence. The data shows that people who can stay the course and don’t panic, are rewarded long term.

7 - Lastly, if you could give three top tips for getting started with impact investing, what would they be?

1. Find an investment manager/app that you trust, who invests the right way with credibility. Look at their reviews, their methodology and who is behind it.

2. Look at their top 10 holdings to ensure what you are investing in is actually impactful. If you see big banks, big tech and oil companies, pause and dig deeper.

3. Start with an investment amount that you are comfortable with, invest monthly so you are building your balance consistently, and increase your investment over time if you can afford to.

That concludes our Q&A with Tom McGillycuddy, co-founder of Circa5000!

Learn more about the brand by visiting its website.

More information:

What are the main benefits of investing with an app?What are the main benefits of investing with an app?

How does Circa5000 screen companies before adding them to its platform?How does Circa5000 screen companies before adding them to its platform?

Other resources on sustainable investingOther resources on sustainable investing