How we invest

All our portfolios are

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Intelligent & diversified

Our team will build you a high-quality, diversified investment portfolio so all your eggs aren't in one basket.


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Low cost

In a complex investment universe, we keep things simple with low-cost, high-quality exchange-traded funds (ETFs), for better long-term returns.


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Risk-balanced

No matter your preferred risk level, we've got a portfolio for you. Plus, we'll keep your investments in line with your chosen risk for you.


Remember, with investment your capital is at risk. The value of your portfolio could go down as well as up and you may get back less than you invest.

How we build portfolios

Your needs
1

We get to know your needs

When you sign up, we first ask you about your goals and risk preference. With that information, we help you choose a portfolio that’s right for you, whether you’d like to be cautious or adventurous.

Risk opportunity
2

We spread the risk and opportunity

All of our portfolios are diversified. This means your money is invested across many different types of assets, countries, and industry sectors, which spreads the risk of your investments while improving your opportunity for higher returns.

Smart stuff
3

We do the smart stuff for you

When assets in your portfolio pay out dividends, we reinvest them automatically, increasing time in the market and your chances for growth. Also, as certain assets perform differently than others, we rebalance your portfolio to stay in line with your risk preference.

On top
4

We're on top of it — you're in control

No matter which investment style you choose, you can always change your risk level whenever your goals or circumstances change.



We offer three investment styles for you to choose from‌.

Fixed
allocation

  • Diversified & regularly rebalanced
  • Wide range of risk levels available
  • Proactively managed by experts
  • Social responsibility focus

These portfolios are designed to perform without intervention. By that, we mean we'll keep you invested in assets that match your risk level, and only review those assets once a year to make sure they're still right for you. Beyond that, we'll keep our hands off.

Annual costs and charges

  • ... up to 100k, ... beyond
  • + Avg. investment fund cost: ...
  • + Avg. market spread: ...

Fully
managed

  • Diversified & regularly rebalanced
  • Wide range of risk levels available
  • Proactively managed by experts
  • Social responsibility focus

These portfolios are proactively managed by our experienced investment team. This means we'll make strategic adjustments to try and protect against losses and boost returns.

Annual costs and charges

  • ... up to 100k, ... beyond
  • + Avg. investment fund cost: ...
  • + Avg. market spread: ...

Socially
responsible

  • Diversified & regularly rebalanced
  • Wide range of risk levels available
  • Proactively managed by experts
  • Social responsibility focus

These portfolios are also proactively managed, and they're designed with social responsibility in mind. We’ll make regular strategic adjustments with a view balanced between performance and ethics.

Annual costs and charges

  • ... up to 100k, ... beyond
  • + Avg. investment fund cost: ...
  • + Avg. market spread: ...
Learn more

Remember, with investment your capital is at risk. The value of your portfolio could go down as well as up and you may get back less than you invest.

What we invest in

We believe long-term, intelligent asset allocation is a far better investment approach than trying to pick a single company that may outperform its competitors. Our expert investment team use a broad range of assets to build sophisticated, globally-diversified portfolios.


Use the slider to see a typical portfolio breakdown based on risk


Balanced
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Portfolio breakdown and investments

Learn more about the investments we use

The majority of holdings are ETFs that meet European regulatory standards.


Execution of orders

We take a variety of steps to obtain the best possible results on behalf of our customers when we execute orders. These include determining the appropriate execution venues, accepting the best available prices of the assets and cost considerations. Further information relating to the quality of execution obtained and the venues where the largest proportions of orders are executed can be found here:

The report covering 2017 can be found here
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The report covering 2018 can be found here
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How we buy these assets for you

Once we've determined which assets should go into a portfolio, and in what proportions, we look to invest in them in the most efficient way possible. We generally prefer to use exchange-traded funds (ETFs) because they’re easy to trade, low cost and aim to track the movement of market indices with a high degree of accuracy.

About ETFs

ETFs hold investment assets — like stocks and bonds — and they are widely traded on many stock exchanges. They usually track an index, like the FTSE 100, or the Dow Jones.

Learn more about ETFs

With investment, your capital is at risk

How we maximise the power of ETFs


High quality funds

Exchange-traded funds are very popular tools used by an array of investors, from institutional investors and hedge funds to pension schemes and private clients. For each asset class in our own portfolios, we choose the funds that offer the best mix of performance, quality and value for money. This way we’re able to bring the average fund cost down across our fully managed, fixed allocation and socially responsible portfolios.

Fractional shares

Every £1 is put to work as efficiently as any £10,000 would be, while we reinvest any dividends across the entire portfolio. Other providers tend to trade ETFs in lots of one share, which, given that some ETFs cost well over £100 per share, makes building a diversified portfolio tricky. We do things a little differently. We can hold a small fraction of one share, on your behalf, which means we can own pennies in any ETF and make global diversification effective at any portfolio size.

Collective buying power

We specialise in building portfolios using ETFs and use our clients’ collective buying power to get the best prices when buying and selling. We bulk together our trades to create economies of scale, and our in-house trading team deals directly with specialist ETF 'market makers' across Europe in order to find the best possible prices. We don’t pay or charge commission and we match deals between clients selling and clients buying to reduce trading further. This process means our portfolios benefit from savings that aren’t available to ordinary investors.


Our investment team

The Nutmeg team come from diverse backgrounds and bring serious in-house investment expertise.

Our philosophy

We don’t put our faith in individual stock pickers or “star managers”. Instead, our investment team collaborate to build and manage portfolios that align with our core investment principles: global asset allocation, diversification, low costs, liquidity and transparency.

Our process

We are built around three core components, all of which are critical to our investment process: investment strategy and macroeconomic research; ETF selection and execution; and investment risk and quant research.

More information

Exchange-traded funds (ETFs)

Intelligent investing

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