Nutmeg Is Now J.P. Morgan Personal Investing

Is Nutmeg any good for investing?

Nutmeg is a very easy and low-cost way to invest in a range of diverse pre-made portfolios created by experts and are part of J.P. Morgan.

Fees: Nutmeg charge 0.75% for their managed portfolios which drops to 0.35% for balances over £100k. For their fixed allocation portfolios, they charge 0.45% dropping to 0.25% for balances over £100k. For all portfolios, there is an additional charge by the investment fund manager of around 0.2% and the market spread on buying and selling portfolios is currently between 0.04% and 0.09%. More information on fees and products can be found here.

What are you actually investing in with Nutmeg?

Nutmeg is one of the most popular robo-advisors in the UK. And for good reason – over the long term its ready-made portfolios have performed very well. But what does Nutmeg actually invest in? Let’s take a look under the bonnet of this robo-advisor.

You can invest in a general investing account, ISA, JISA or Lifetime ISA. There are 5 investment styles are made up of 34 individual portfolios.

Performance has been profitable over the last ten years, with annual returns for the higher risk portfolio averaging  out at 7% per year, which the state is higher than their peers returns at 4.9%. However, those peers are based on the monthly results published by Asset Risk Consultants (ARC) which computes the average returns from discretionary investment managers based on risk profile, after fees.

I would say a better comparison of Nutmeg’s performance would be against other robo-advisors like Moneyfarm’s mid-risk portfolio of 11.4%.

The past performance shown represents a composite of asset-weighted average returns for Nutmeg client portfolios, net of all fees. A composite return represents the average return of all client accounts for a given risk level on a given day, weighted by assets. Past performance is not a reliable indicator of future performance.

Nutmeg’s ready-made portfolios

With Nutmeg, there are five different types of ready-made portfolios you can invest in. These are:

• Fixed allocation portfolios
• Fully managed portfolios
• Socially responsible investment portfolios
• Smart Alpha portfolios
• Thematic investing portfolios

All of these portfolios contain a mix of stocks and bonds. More specifically, they contain a mix of stock and bond exchange-traded funds (ETFs).

ETFs are low-cost funds that typically track market indexes (FTSE 100, S&P 500, etc.), asset classes, or market segments. They’re an easy way to gain exposure to a diversified range of investments without having to buy each one individually.

The exact mix of different ETFs you get will depend on the risk level of the portfolio that you choose. Below, we look at how some of the portfolios are invested.

Fixed allocation portfolios

Nutmeg’s fixed allocation portfolios offer passive investing with a global, multi-asset allocation. The mix of investments in the portfolios is set by the Nutmeg investment team at the beginning, rebalanced automatically, and reviewed once a year.

A lot of this portfolio is invested in large-cap US and UK stocks.

As for the types of the ETFs in these portfolios, here’s a look at the breakdown of the highest risk level portfolio (risk level 5) as of 30 September 2024.

And here’s a look at the lowest risk portfolio (risk level 1) as of 30 September 2024.

This portfolio is more focused on government and corporate bonds but still has some equity exposure.

As you can see, these ready-made portfolios hold many different ETFs.

Fully managed portfolios

The fully managed portfolios are similar to the fixed allocation portfolios in that they offer a global, multi-asset allocation. However, the key difference is that with these portfolios, Nutmeg’s investment experts monitor them actively and adjust them for you.

There is a heavy focus on US stocks in fully managed portfolios.

Here’s a breakdown of the highest risk fully managed portfolio as of 30 September 2024.

And here’s a look at the lowest risk fully managed portfolio as of 30 September 2024. This portfolio is more focused on short-term bonds.

Socially responsible investment portfolios

Nutmeg’s socially responsible investment (SRI) portfolios are invested in equity and bond ETFs that have a focus on environmental, social, and governance (ESG) factors. Like the fully managed portfolios, there’s continuous oversight from Nutmeg’s in-house investment team.

The largest holdings are US and UK equity ESG products.

Here’s a breakdown of the highest risk SRI portfolio as of 30 September 2024.

And here’s a look at the lowest risk SRI portfolio as of 30 September 2024. This is mainly focused on short-term ESG fixed income products.

Smart Alpha portfolios

With the Smart Alpha portfolios, asset allocation is managed by Nutmeg’s in-house investment team, who make tactical adjustments to the portfolios based on JP Morgan Asset Management’s research. The aim is to achieve higher returns by investing in more niche ETFs.

Here’s a breakdown of the highest risk Smart Alpha portfolio as of 30 September 2024. The largest holdings here are JP Morgan equity products.

And here’s a look at the lowest-risk Smart Alpha portfolio as of 30 September 2024. This is mainly invested in JP Morgan bond ETFs.

Thematic investing portfolios

Finally, Nutmeg’s thematic investing portfolios have been designed to help you invest in trends shaping the future. There are three different portfolios here – Technological innovation, Resource transformation, and Evolving consumer (each with multiple risk levels).

With these portfolios, the bulk of your money is invested in globally diversified ETFs that are not specific to your chosen theme. However, some capital is allocated to niche ETFs that are focused on your chosen theme.

Here’s a breakdown of the highest-risk Technological Innovation portfolio as of 30 September 2024.

As you can see, there are ETFs focused on themes such as cloud computing, cybersecurity, robotics, and semiconductors.

Here’s a breakdown of the highest risk Resource transformation portfolio as of 30 September 2024.

Here, there are ETFs focused on themes such as clean energy and water.

Here’s a breakdown of the highest risk Evolving consumer portfolio as of 30 September 2024.

This portfolio has ETFs focused on themes such as demographic change, healthcare innovation, and emerging global wealth.

Is Nutmeg safe?

Yes, Nutmeg is regulated by the FCA which means that your funds may be protected (up to a point) by the FSCS. However, it’s important to note that when you invest the value of your portfolio can go up as well as down.

Is Nutmeg fully managed worth it?

Using a fully managed investment account is worth it if you are not confident in choosing specifically what you want to invest in for your future. By using a managed platform like Nutmeg, they regularly adjust your portfolio to balance risk.

Are Nutmeg fees too high?

Nutmeg’s fixed allocation fees are some of the lowest in the industry and cheaper than Wealthify and Moneyfarm, However, their other portfolios are slightly higher. You can compare robo-advisor fees here.

What do Nutmeg invest in?

Nutmeg invest in ETFs to build globally diversified portfolios, these are tailored to your goals and risk profile, and invested in exchange traded funds (ETFs). ETFs are a great way to invest as they follow the stock market and give you exposure to a wise range of investments without having to buy each one. You can read more in our guide to ETFs.