Portfolio costs and fees
The table below defines the fees and average fund and market spread costs of each Nutmeg portfolio investment style. Nutmeg Fees represent the weighted average* Nutmeg fee paid by Nutmeg clients in 2023 in each portfolio (investment style and risk level) range. Fund Costs and Market Spread are calculated for the period 2023.
Portfolio costs and charges
Portfolio | Nutmeg Fees | Fund Costs | Market Spread |
|---|---|---|---|
Fully Managed Risk Level 1 | 0.62% | 0.1280% | 0.0084% |
Fully Managed Risk Level 2 | 0.62% | 0.1453% | 0.0085% |
Fully Managed Risk Level 3 | 0.62% | 0.1527% | 0.0144% |
Fully Managed Risk Level 4 | 0.62% | 0.1966% | 0.0223% |
Fully Managed Risk Level 5 | 0.62% | 0.1974% | 0.0296% |
Fully Managed Risk Level 6 | 0.62% | 0.2013% | 0.0368% |
Fully Managed Risk Level 7 | 0.62% | 0.2079% | 0.0411% |
Fully Managed Risk Level 8 | 0.62% | 0.2141% | 0.0434% |
Fully Managed Risk Level 9 | 0.62% | 0.2117% | 0.0430% |
Fully Managed Risk Level 10 | 0.62% | 0.1936% | 0.0358% |
Socially Responsible Risk Level 1 | 0.66% | 0.1344% | 0.0294% |
Socially Responsible Risk Level 2 | 0.66% | 0.1652% | 0.0301% |
Socially Responsible Risk Level 3 | 0.66% | 0.1953% | 0.0334% |
Socially Responsible Risk Level 4 | 0.66% | 0.2366% | 0.0268% |
Socially Responsible Risk Level 5 | 0.66% | 0.2545% | 0.0286% |
Socially Responsible Risk Level 6 | 0.66% | 0.2758% | 0.0233% |
Socially Responsible Risk Level 7 | 0.66% | 0.2926% | 0.0211% |
Socially Responsible Risk Level 8 | 0.66% | 0.3092% | 0.0214% |
Socially Responsible Risk Level 9 | 0.66% | 0.3216% | 0.0233% |
Socially Responsible Risk Level 10 | 0.66% | 0.3264% | 0.0194% |
Smart Alpha 1 | 0.61% | 0.2552% | 0.0088% |
Smart Alpha 2 | 0.61% | 0.2890% | 0.0167% |
Smart Alpha 3 | 0.61% | 0.2931% | 0.0231% |
Smart Alpha 4 | 0.61% | 0.2965% | 0.0277% |
Smart Alpha 5 | 0.61% | 0.3161% | 0.0322% |
Fixed Allocation 1 | 0.41% | 0.1346% | 0.0000% |
Fixed Allocation 2 | 0.41% | 0.1639% | 0.0000% |
Fixed Allocation 3 | 0.41% | 0.1720% | 0.0000% |
Fixed Allocation 4 | 0.41% | 0.1918% | 0.0000% |
Fixed Allocation 5 | 0.41% | 0.1906% | 0.0000% |
Pension costs and charges illustration
The tables below display illustrations of the fees, market spread and fund costs on a pension invested in one of the given investment styles and risk levels. The starting portfolio is valued at £10,000 with £3,600 yearly contribution (including Government Bonus) increasing monthly by yearly earning inflation of 3.5%. All results are adjusted by Price Inflation of 2%.
Fully Managed - risk level 2
Years | Total Paid In to Date | Projected transfer value if there were no fees, market spread or fund costs | Projected transfer value after fees and market spread | Projected transfer value after all fees, market spread and fund costs |
|---|---|---|---|---|
1 | £13,629 | £13,853 | £13,764 | £13,747 |
3 | £21,047 | £21,948 | £21,587 | £21,518 |
5 | £28,685 | £30,582 | £29,815 | £29,671 |
10 | £48,784 | £54,709 | £52,266 | £51,812 |
15 | £70,406 | £82,851 | £77,622 | £76,665 |
20 | £93,664 | £115,529 | £106,589 | £104,877 |
25 | £118,684 | £153,328 | £139,863 | £137,107 |
30 | £145,599 | £196,903 | £177,918 | £173,776 |
35 | £174,552 | £246,981 | £221,278 | £215,343 |
40 | £205,697 | £304,377 | £270,520 | £262,316 |
Simulation review
The table above displays an illustration of the fees, market spread and fund costs on a pension invested in the Nutmeg Fully managed, risk level 2 portfolio. The starting portfolio is valued at £10,000 with £3,600 yearly contribution (including Government Bonus) increasing monthly by yearly earning inflation of 3.5%. All results are adjusted by Price Inflation of 2%. The final column ('all fees, fund costs and market spread') uses total costs and charges set at 0.77% yearly (0.63% for the 'fees and market spread' column). This is based on the weighted average of actual 2023 costs and charges on all Fully Managed risk level 2 portfolios, including fees, fund costs and market spread.
Fully Managed - risk level 6
Years | Total Paid In to Date | Projected transfer value if there were no fees, market spread or fund costs | Projected transfer value after fees and market spread | Projected transfer value after all fees, market spread and fund costs |
|---|---|---|---|---|
1 | £13,629 | £14,017 | £13,924 | £13,900 |
3 | £21,047 | £22,624 | £22,237 | £22,138 |
5 | £28,685 | £32,042 | £31,201 | £30,990 |
10 | £48,784 | £59,551 | £56,732 | £56,037 |
15 | £70,406 | £93,619 | £87,325 | £85,782 |
20 | £93,664 | £135,540 | £124,409 | £121,520 |
25 | £118,684 | £186,850 | £169,310 | £164,444 |
30 | £145,599 | £249,369 | £223,378 | £215,722 |
35 | £174,552 | £325,253 | £288,186 | £276,702 |
40 | £205,697 | £417,054 | £365,563 | £348,939 |
Simulation review
The table above displays an illustration of the fees, market spread and fund costs on a pension invested in the Nutmeg Fully managed, risk level 6 portfolio. The starting portfolio is valued at £10,000 with £3,600 yearly contribution (including Government Bonus) increasing monthly by yearly earning inflation of 3.5%. All results are adjusted by Price Inflation of 2%. The final column ('all fees, fund costs and market spread') uses total costs and charges set at 0.86% yearly (0.63% for the 'fees and market spread' column). This is based on the weighted average of actual 2023 costs and charges on all Fully Managed risk level 6 portfolios, including fees, fund costs and market spread.
Fully Managed - risk level 10
Years | Total Paid In to Date | Projected transfer value if there were no fees, market spread or fund costs | Projected transfer value after fees and market spread | Projected transfer value after all fees, market spread and fund costs |
|---|---|---|---|---|
1 | £13,629 | £14,128 | £14,034 | £14,010 |
3 | £21,047 | £23,088 | £22,692 | £22,595 |
5 | £28,685 | £33,062 | £32,190 | £31,979 |
10 | £48,784 | £63,080 | £60,054 | £59,336 |
15 | £70,406 | £101,796 | £94,860 | £93,207 |
20 | £93,664 | £151,369 | £138,794 | £135,598 |
25 | £118,684 | £214,472 | £194,040 | £188,476 |
30 | £145,599 | £294,413 | £263,107 | £254,054 |
35 | £174,552 | £395,284 | £349,045 | £334,998 |
40 | £205,697 | £522,142 | £455,556 | £434,516 |
Simulation Review
The table above displays an illustration of the fees, market spread and fund costs on a pension invested in the Nutmeg Fully managed, risk level 10 portfolio. The starting portfolio is valued at £10,000 with £3,600 yearly contribution (including Government Bonus) increasing monthly by yearly earning inflation of 3.5%. All results are adjusted by Price Inflation of 2%. The final column ('all fees, fund costs and market spread') uses total costs and charges set at 0.85% yearly (0.63% for the 'fees and market spread' column). This is based on the weighted average of actual 2023 costs and charges on all Fully Managed risk level 10 portfolios, including fees, fund costs and market spread.
Cost and charges per fund
- Nutmeg Fees ('Annual Management Charge')
Have been set at average customer weight. - Fund Costs ('Charges for managing and maintaining the fund')
Calculated based on the:
- fund allocation of portfolios for the period 2023
- current fund management fees and Ex-Ante (based on forecast) transaction costs.
The calculation of 'Fund Costs' combines the fund management fees and ex-ante transaction costs. - Market Spread ('Transaction Costs')
This is calculated as the average estimated transaction costs for the portfolio during 2023 - Displaying data for timeframe of 1-40 Years and for a low, medium and high risk portfolio (2 being low, 6 being medium, 10 being high) for our most common portfolio style (Fully Managed).
- £10,000 starting contribution, £300 monthly (after tax relief).
- Contributions increase by 3.5% per year (monthly adjustment), in line with the earnings inflation rate described in COBS 13 Annex 2.
All prices shown are adjusted to inflation at 2% per annum, in line with the price inflation rate described in COBS 13 Annex 2. - Fees are taken as a weighted client average* for the portfolio style.
- Cost and Charges data as of 2023 average.
* What is a weighted average?
In calculating a simple average all numbers in the data set are treated equally. In a weighted average, a value applied to each point in the data, based on their relative importance. Each number in the data set is multiplied by a specific weight value when calculating a weighted average.
In this instance we use weighted average across the client portfolios, based on the size (value) of the portfolio and the related fees at that size of portfolio.