Nutmeg online investment - opinions?
Discussion
Whilst this smells like a wordy advert:
http://www.managementtoday.co.uk/bulletin/mtenterp...
The idea seems quite good and, of course, their website looks quite snazzy:
http://www.nutmeg.com/
Has anyone come across this company before and/or is using them?
http://www.managementtoday.co.uk/bulletin/mtenterp...
The idea seems quite good and, of course, their website looks quite snazzy:
http://www.nutmeg.com/
Has anyone come across this company before and/or is using them?
Not heard of them.
However, having done my standard test of looking at their staff and their controlled function history the majority of staff appear to have never worked in the industry before and those who have appear to come from Winterfloods, Gerrards and Brewins.
My very crude assumption would be that the team would struggle to outperform the market. Perfectly kosher but doesn't read like any form of dream team just a group of private client brokers unable to acquire HNWs so goin after the mid market.
However, having done my standard test of looking at their staff and their controlled function history the majority of staff appear to have never worked in the industry before and those who have appear to come from Winterfloods, Gerrards and Brewins.
My very crude assumption would be that the team would struggle to outperform the market. Perfectly kosher but doesn't read like any form of dream team just a group of private client brokers unable to acquire HNWs so goin after the mid market.
Fairly well known in the industry now.
Not used them, but not heard anything bad about them either. If you're wanting a discretionary style approach and don't have the funds for a more bespoke approach, may be worth a look.
That being said discretionary solutions are not for all and you're overlaying a really cheap ETF portfolio with another layer of fees. If you want to be a bit more hands on you could do pretty much the same thing without the secondary cost.
Also, remember ETFs do not ever outperform the market, assuming not smart beta types, as they purely track the index. This can be a bad thing, bond markets being a very pertinent example where duration at the minute can make a big difference to returns.
Not used them, but not heard anything bad about them either. If you're wanting a discretionary style approach and don't have the funds for a more bespoke approach, may be worth a look.
That being said discretionary solutions are not for all and you're overlaying a really cheap ETF portfolio with another layer of fees. If you want to be a bit more hands on you could do pretty much the same thing without the secondary cost.
Also, remember ETFs do not ever outperform the market, assuming not smart beta types, as they purely track the index. This can be a bad thing, bond markets being a very pertinent example where duration at the minute can make a big difference to returns.
Edited by ellroy on Friday 15th January 18:08
I have my ISA with them in one of their balanced options. I am reasonably happy. They are VERY cheap by discretionary management standards (I pay 0.6% + cost of the underlying investments which are mainly ETFs) and it is a set and forget option - lob in the ISA allowance each year and sit back. Depends what you are looking for but could do worse. As noted above there are a number of robo advisers available - not sure how they compare.
Meaningful assessment? No, not really, certainly not of a consumer kind, although the personal finance editor of the FT tried it last week.
https://mobile.twitter.com/claerb/status/685787387...
The robo sector is new, still emerging, and technology is moving on quickly. Every week brings new developments. I'm happy that my process is simple, thorough and quick but I'm certain too, that standards will continue to move on.
If you can bear it, I'm talking about Fiver a Day here at the 32' point.
http://www.bbc.co.uk/programmes/b06smjd1
https://mobile.twitter.com/claerb/status/685787387...
The robo sector is new, still emerging, and technology is moving on quickly. Every week brings new developments. I'm happy that my process is simple, thorough and quick but I'm certain too, that standards will continue to move on.
If you can bear it, I'm talking about Fiver a Day here at the 32' point.
http://www.bbc.co.uk/programmes/b06smjd1
Ginge R said:
Meaningful assessment? No, not really, certainly not of a consumer kind, although the personal finance editor of the FT tried it last week.
https://mobile.twitter.com/claerb/status/685787387...
The robo sector is new, still emerging, and technology is moving on quickly. Every week brings new developments. I'm happy that my process is simple, thorough and quick but I'm certain too, that standards will continue to move on.
If you can bear it, I'm talking about Fiver a Day here at the 32' point.
http://www.bbc.co.uk/programmes/b06smjd1
Out of interest, what is the typical solution for booking equity splits to client accounts? Is it genuinely automated or does it still use the original way of executing a block order and then clerks book the splits to the client accounts?https://mobile.twitter.com/claerb/status/685787387...
The robo sector is new, still emerging, and technology is moving on quickly. Every week brings new developments. I'm happy that my process is simple, thorough and quick but I'm certain too, that standards will continue to move on.
If you can bear it, I'm talking about Fiver a Day here at the 32' point.
http://www.bbc.co.uk/programmes/b06smjd1
No, it's genuinely automatic, based on an algorithm which pulls through detail offered by a client based on appetite and capacity for risk/loss and other personal circumstances. I review all apps and can either decline or modify applications if I think it warrants it, but that's how far the automation goes.
If a client wants to change his/her optimum portfolio, by, say, increasing their exposure to equities, I review it. Not everyone will like that aspect but it's my name on the business and I'm not into selling investments for the sake of it.
Even the money laundering is automated. Rebalancing, six monthly statements, fund buys and sells too, sweeping up unused ISA allowance from a non ISA.. if the client specifies it, it's all automatic. To offer a competitively priced service, I've had to invest in tech.
If a client wants to change his/her optimum portfolio, by, say, increasing their exposure to equities, I review it. Not everyone will like that aspect but it's my name on the business and I'm not into selling investments for the sake of it.
Even the money laundering is automated. Rebalancing, six monthly statements, fund buys and sells too, sweeping up unused ISA allowance from a non ISA.. if the client specifies it, it's all automatic. To offer a competitively priced service, I've had to invest in tech.
Ginge R said:
No, it's genuinely automatic, based on an algorithm which pulls through detail offered by a client based on appetite and capacity for risk/loss and other personal circumstances. I review all apps and can either decline or modify applications if I think it warrants it, but that's how far the automation goes.
If a client wants to change his/her optimum portfolio, by, say, increasing their exposure to equities, I review it. Not everyone will like that aspect but it's my name on the business and I'm not into selling investments for the sake of it.
Even the money laundering is automated. Rebalancing, six monthly statements, fund buys and sells too, sweeping up unused ISA allowance from a non ISA.. if the client specifies it, it's all automatic. To offer the service competitively, I've had to invest in tech.
Thanks. I wouldn't mind investigating this further. If a client wants to change his/her optimum portfolio, by, say, increasing their exposure to equities, I review it. Not everyone will like that aspect but it's my name on the business and I'm not into selling investments for the sake of it.
Even the money laundering is automated. Rebalancing, six monthly statements, fund buys and sells too, sweeping up unused ISA allowance from a non ISA.. if the client specifies it, it's all automatic. To offer the service competitively, I've had to invest in tech.
If clients chose the same investment profile/criteria do they then have identical portfolios?
If so, how does the system eventually handle trade sizes larger than best bid/offer volumes? Or does each client portfolio execute individually even if identical?
I've joined a few finance sites like this, P2P, Crowdfunders, etc. as Fin Tech is an area that fascinates me. I stick a grand or two in each to see what happens. Nutmeg is one I joined in Feb of last year and here are the stats so far:
Total fund value today = £1,933
Net contributions to date = £2,100
Investment returns = -£153
Fees = £14
Overall an 8.65% loss
Not great but no idea how this compares to my proper pension being managed by a "proper" fund company.
I went in as quite high risk. The fund seemed to perform over their predictions for the first 6 months but since Sept has lost money.
Total fund value today = £1,933
Net contributions to date = £2,100
Investment returns = -£153
Fees = £14
Overall an 8.65% loss
Not great but no idea how this compares to my proper pension being managed by a "proper" fund company.
I went in as quite high risk. The fund seemed to perform over their predictions for the first 6 months but since Sept has lost money.
The arse started falling out of the ftse back in August. At a wild guess, since Feb 15 I suspect the market is down over 10% so it looks like, on a non risk weighted basis, you've outperformed the market?
Re crowd funding, I'm not a big fan. My experience is that the smaller the business the crapper and fewer the analysts covering it. My gut tells me that a lot of the investments will transpire to be disasters and some total frauds. To date I've not been impressed by the people setting them up and approaching me to raise capital.
Re crowd funding, I'm not a big fan. My experience is that the smaller the business the crapper and fewer the analysts covering it. My gut tells me that a lot of the investments will transpire to be disasters and some total frauds. To date I've not been impressed by the people setting them up and approaching me to raise capital.
Edited by DonkeyApple on Monday 18th January 21:27
DonkeyApple said:
Thanks. I wouldn't mind investigating this further.
If clients chose the same investment profile/criteria do they then have identical portfolios?
If so, how does the system eventually handle trade sizes larger than best bid/offer volumes? Or does each client portfolio execute individually even if identical?
Yes, the portfolios are identical if you fit the profile. Portfolios are rebalanced individually, this is the current weighting of my 5/10 portfolio for instance.If clients chose the same investment profile/criteria do they then have identical portfolios?
If so, how does the system eventually handle trade sizes larger than best bid/offer volumes? Or does each client portfolio execute individually even if identical?
Ginge R said:
Yes, the portfolios are identical if you fit the profile. Portfolios are rebalanced individually, this is the current weighting of my 5/10 portfolio for instance.
Very interesting. What are spreads like on these funds nowadays? It's not a sphere I've been involved in for nearly 20 years but back then most were at least 5%+. Just trying to envisage the gains needed on each purchase to get on side?Ginge R said:
Here's an objective view of Robo which refers to all service providers, mine included - and I say that to be honest and declare an interest.
http://www.thisismoney.co.uk/money/diyinvesting/ar...
You're a cyborg http://www.thisismoney.co.uk/money/diyinvesting/ar...
Am impressed, it's a great looking service. I'm researching pensions atm rather than ISAs. Anyway, I see Parmenion are providing the risk modelling & forecasting screens. Are they one of many now in this space? How does that bit hook up to the final fund choices? (I didn't get that far on a quick play)Gassing Station | Finance | Top of Page | What's New | My Stuff