The new range of five portfolios aims to improve the choice available to Nutmeg’s clients and is the first time any online wealth manager has taken the step to offer a passive form of investing, the firm claimed.
Fees for the new ETF-based range will be between 0.25% and 0.45% with no trading fees or exit fees, but clients will pay underlying fund charges of between 0.13% and 0.22% a year.
Martin Stead, Nutmeg’s CEO, said: “Our new fixed allocation portfolios will particularly appeal to experienced investors with a long-term mind set. Customers will be able to choose from five professionally-designed portfolios, diversified across a range of geographies and asset classes, with automated rebalancing to keep their investments in line with their risk profile.”
He added he hopes it will be of interest to people self-managing their investments.
The fixed allocation products will launch at a 0.45% for the first £100,000 invested and 0.25% from then on.
Nutmeg also said it is cutting annual fees on its managed investment portfolios to 0.35% from 0.5% for investors with more than £100,000. Customers with less than £25,000 will see fees cut by 0.2% to 0.75% a year.
Nutmeg’s portfolios hold up to 10,000 underlying securities from across 45 equity markets and fixed income from 92 countries, and it has exposure to a range of large, mid and small cap stocks across the US, eurozone, Japan and emerging markets.