By Daniel Lanyon on Friday 13 January 2017
The firm is adding a range of portfolios that rebalance automatically without human interference to its online wealth management offering.
Nutmeg has become the first online wealth manager or ‘robo advisor’ to give customers a choice between active human management of asset allocation or a passive portfolio with no human intervention.
Designed by Nutmeg’s investment team, the fixed allocation range offers five globally diversified risk-based portfolios investing across a range of asset classes. Unlike Nutmeg’s human-managed offering, these portfolios will be automatically rebalanced without human intervention. The new portfolios launch on 16th January.
Fixed allocation portfolios have a fee of 0.45 per cent for the first £100k and 0.25 per cent thereafter, providing customers the benefit of a professionally designed portfolio with on-going rebalancing, and no transaction costs, trading fees, or exit fees. Portfolios hold up to 10,000 underlying securities across 45 equity markets and fixed income from 92 countries.
All customers will continue to pay underlying fund charges, which range between 0.13 and 0.22 per annum. Nutmeg does not retain any of this charge.
As with the firm’s other portfolios, fixed allocation customers will receive 24/7 access to their money and full transparency on how their investments are performing.
Martin Stead, CEO of Nutmeg, said: “Our new fixed allocation portfolios will particularly appeal to experienced investors with a long-term mind-set. Customers will be able to choose from five professionally designed portfolios, diversified across a range of geographies and asset classes, with automated rebalancing to keep their investments in line with their risk profile.