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
PDF attachment
The report covering 2018 can be found here
PDF attachment

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 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. For each asset class in our portfolios, we select the fund we believe offers the best mix of performance, quality and value for money and upgrade them when a better one becomes available. This process has brought the average fund cost of our fully managed portfolios from 0.27% to just 0.19% annually over the past three years. Our fixed allocation portfolios have an average fund cost of 0.18% and our socially responsible portfolios have an average fund cost of 0.33%.

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 one share, effectively owning pennies in any ETF, which makes global diversification effective at any portfolio size.

Lower prices

In 2017, our in-house dealing team was able to buy investments at a price 0.06% lower or sell at 0.05% higher* on average than the prices quoted on the London Stock Exchange. We make this happen by also dealing directly with specialist ETF 'market makers' across Europe to get the best possible prices. We additionally match deals between clients selling and clients buying, to reduce trading further.

These steps add up over time: in fact, over the past two calendar years we have saved our customers over £1.9M.**


* Based on all trades conducted in 2017, this is the difference between the quoted price on the London Stock Exchange at the exact time of the trade and the price we obtained.
** Based on the cumulative effect of the differences across all trades conducted in 2016 and 2017.

Our investment team

The Nutmeg investment team is rich in experience and expertise.

Experience and expertise

The Nutmeg investment team has extensive experience in macro-economics, market analysis, and risk and security selection across a wide range of investments. The team is run by our Chief Investment Officer, Shaun Port, who has more than 25 years' experience in devising investment strategies for clients ranging from central banks to pension schemes to private high-net worth individuals.

Our resources

The investment team has a wealth of resources at their fingertips to help inform their investment views, including cutting edge investment systems. They also use a range of research and analytics tools, including those of major global investment banks.

More information

Exchange-traded funds (ETFs)

Intelligent investing

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