The returns are regarded as simulated and based upon an initial investment start date of 31/12/1996, up to 31/12/2016. Model returns are calculated based upon the returns of the asset class indices and do not take into account the effect of ETF tracking error. ETF products would not have been available at the initial start date. Currency hedging costs have been estimated where a hedged index has not been available. Portfolio holdings have been rebalanced to their original starting weight based upon a 6% gross error threshold. A trading cost of 0.2% has been applied to the returns when a simulating a rebalance. Underlying fund costs have been included, based upon their current fee rate. Returns are net of a 0.45% management fee.
Balanced Aims for moderate growth without extreme volatility
Best 12 months
Worst 12 months
Understanding performance and how it's calculated
The returns shown here are regarded as simulated as they do not represent a single client account or an average of customer returns. The data is calculated using actual Nutmeg trading data from client accounts, using actual trades carried out at market prices, and is based on an account size of £25,000. The returns are calculated after fees, including both the weighted average rate paid by Nutmeg clients of 0.82% per year including VAT prior to 01/02/2016 and 0.72% thereafter, as well as the underlying fund costs (averaging 0.19% per year as at 31 May 2016), such as the fees charged by an ETF provider like iShares. Dividends have been included on an accrual basis. Source of price data: Bloomberg, Macrobond AB.
Average competitor returns
This data is based on monthly results published by Asset Risk Consultants (ARC). ARC compute the average returns from discretionary investment managers based on risk profile, after fees. These include results from firms such as Barclays, Coutts & Co, JP Morgan Private Bank, UBS, Rathbones, Rothschild Wealth Management, and others. For example, the Sterling Balanced Asset Private Client Index (PCI) is a group of portfolios managed with risk aimed at around 60% of volatility of global stock markets. For Nutmeg risk levels 3-4 the Sterling Cautious index (0-40% Equity Risk) is used, for 5-6 the Sterling Balanced Asset index (40%-60% Equity Risk), for 7-8 the Sterling Steady Growth index (60%-80% Equity Risk), and for 9-10 the Sterling Equity Risk Index (80%-100% Equity Risk). Source data: Macrobond AB.
Sources: hl.co.uk, pamonline.com, moneysavingexpert.com, The Guidance Gap Report, The Money Advice Service.
How we maximise the power of ETFs
The best funds
Exchange-traded funds are very popular tools used by a wide range of investors,
from institutional investors and hedge funds to pension schemes and private clients.
There are over 1800 ETFs listed for sale in the UK, from 24 different providers.
From this universe, we select the best in class funds for each asset class and automatically upgrade them whenever a better one becomes available. This process has brought the average underlying fund cost of our portfolios from 0.27% to just 0.19% annually over the past three years.
We are the first and only wealth manager in the UK to trade in fractional shares. This means that every £1 is put to work as efficiently as £10,000 would be, with each dividend received reinvested across your whole portfolio. Other providers trade ETFs in lots of one share, which with some ETFs costing well above £100 per share makes building a diversified portfolio difficult, even with large portfolios. Our systems, on the other hand, can hold a small fraction of a one share, effectively owning pennies in any ETF, which makes global diversification effective at any portfolio size.
The best prices
Typically, our in-house dealing team is able to buy investments at a price 0.08% lower or sell at 0.08% higher* than the market price. We make this happen in a few ways: 1) Rather than dealing on the London Stock Exchange, we deal directly with specialist ETF 'market makers' across Europe to get the best possible prices, and 2) we match deals between clients selling and clients buying to reduce trading further. These improvements add up over time: we saved our customers over £1,000,000 last year alone.
* Based on all trades conducted in 2016, this is the difference between the market quoted price at the exact time of the trade and the price we obtained.
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