Nutmeg Fixed allocation portfolio

Fixed allocation

An investment product designed to perform without intervention. Think low cost, diversified portfolios with automated rebalancing.

With investment, your capital is at risk.

Low intervention

Globally diversified

Designed by experts

Fixed allocation, in a nutshell

Who’s it for?

“I want a diversified portfolio without the cost of continuous management”

What does the portfolio contain?

A globally diversified portfolio of exchange traded funds (ETF). An ETF – more here – typically tracks a market index and makes it possible to access a pool of investments without buying each underlying asset individually. Our fixed allocation style has a fixed universe of investments based on your risk profile.

Is there ongoing management?

No. The mix of investments in the fixed allocation portfolios is set by our investment team at the beginning, rebalanced automatically and reviewed once a year. You can think of fixed allocation as a “set and forget” style, but there’s science behind how it’s set.

Risk levels

Choose from 5 risk levels – low to high – to reflect your risk appetite.

10 investment risk levels

Is my money locked in?

No. You can have access to your money in a few days, at any time

Still not sure? How about...

Fully Managed

“I want experts to take a hands-on approach to my investments.”

Find out more

Socially responsible

“I want my investments managed and invested in line with my values”

Find out more

Past performance and asset allocation

Below you can see a detailed breakdown of our performance, as well as an indication of how our investments are allocated across global financial markets.

Track record

Explore our 3-year track record for each of our 5 risk-based Fixed Allocation portfolios.

This past performance is simulated but based on real market transactions, with all customer portfolios represented as a single portfolio for each risk level. Past performance is not a reliable indicator of future performance.

*The annualised figure is the return since inception expressed as a compound annual rate. For example, a portfolio with an annualised return of 6% corresponds to an actual return of 19.1% over three years (rather than 18% as you might expect) due to the effect of compounding.

Capital at risk.

Most people ask us…

Would you prefer to reduce your costs as much as possible? If so, fixed allocation might be for you. Would you prefer for someone to watch over your investments with the ability to make changes on a regular basis? In that case, you might consider fully managed.

 

In terms of how they’re designed, the fixed allocation portfolios have a backward-looking perspective. They are constructed with the implicit assumption that past long-term market behaviour will be repeated in the future over the long term, although, as with all investment, this is not a guarantee.

 

 Fully managed portfolios have a forward-looking perspective, with the investment team making decisions about market value, market momentum, prevailing cyclical and structural forces expected to impact in the near to medium term. The investment team learns from past behaviour but is not tied to it.

 

These differences in investment perspective and portfolio flexibility help to explain asset allocation differences between fixed and fully managed portfolios and the resulting short and medium-term portfolio returns.

 

You’ll also find that fully managed portfolios cost more than fixed allocation ones because they are an investment service, overseen and managed by Nutmeg’s experienced investment team. Fixed allocation portfolios are cheaper because they are an off-the-shelf investment product that does not require daily management by our investment team.

Fixed allocation portfolios are cheaper because they are an off-the-shelf investment product that does not require daily management by our investment team. Fully managed portfolios cost more than fixed allocation ones because they are an investment service, overseen and managed by Nutmeg’s experienced investment team.

Because of the way they are built, the fixed allocation portfolios can be seen as based on historical performance, since the mix of investments in the portfolio reflects past market conditions. Offsetting this risk is the fact that the Nutmeg team update the fixed allocations once a year based on the last year’s data. The annual review is an opportunity to add new asset classes that may emerge or to replace an ETF with a better performing substitute.

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Our team of specialists can help answer any questions you may have.

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