The online wealth manager has introduced a lower fee structure and is cutting management fees for customers.
Online wealth manager Nutmeg is passing on technology advancements to existing customers by lowering its fees.
More than two thirds of customers will see a fee cut after January 16, the firm announced on Friday.
“Fees are the only part of your investment performance that you can control,” said Martin Stead, CEO of Nutmeg. “Even a tiny reduction can make a massive saving over 20 or 30 years.”
Nutmeg is part of the newest generation of automated investment known as robo advisors. Robo advisors are digital wealth managers that use automated algorithms to allocate investors’ assets into portfolios based on a questionnaire that analyses a client’s risk appetite and other factors.
Nutmeg has changed its fee structure from four different bands to two. Clients will only pay 0.75 per cent on their first £100,000 and 0.35 per cent on all investments over £100,000. Investors can put in as little as £500 into Nutmeg’s portfolios. Customers will still have to pay underlying fund charges, which average 0.19 per cent per annum.
The company launched in 2012 and manages more than half a billion pounds for over 20,000 customers.
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