Discretionary Management  

Nutmeg launches passive portfolio range

Nutmeg launches passive portfolio range

Online wealth manager Nutmeg has added five fixed-allocation portfolios to its offering, making it the first online wealth manager to offer both a passive product and an actively managed portfolio service.

Designed by Nutmeg’s investment team, the range offers five portfolios with different levels of risk, which are built to include as many asset classes as possible provided they add value on a risk-adjusted basis. 

Portfolios hold up to 10,000 underlying securities across 45 equity markets and fixed income from 92 countries.

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Unlike Nutmeg’s managed offering, these new portfolios – which are made up of exchange-traded funds – will be automatically rebalanced without human intervention.

Earlier today (13 January) the company announced it had cut its fees as it looked to “democratise” wealth management.

Martin Stead, chief executive of Nutmeg, said the new 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.” 

The portfolios, which will be available from the 16 January, launch with a fee of 0.45 per cent for the first £100k and 0.25 per cent thereafter.

Mr Stead said these starter rates will be of “real interest” to anyone currently self-managing their investments on an execution-only DIY platform.

While all customers will continue to pay underlying fund charges, which range between 0.13 and 0.22 per year, the portfolios have no on-going rebalancing costs, transaction costs, trading fees, or exit fees.