As low-cost rivals continue to enter the robo-advisor and online wealth management market, Nutmeg reduces fees for most of its client base.
According to Nutmeg, you can get an intelligent, fully-managed investment portfolio from the comfort of your own home. Well now you can get that service even cheaper as Nutmeg reduces fees once again for their clients.
Nutmeg investment customers will now pay 0.75 percent on their first £100,000 and 0.35 percent on any sum invested above that. Currently, those that invest through the Nutmeg platform pay 0.95 percent on anything up to £25,000, 0.75 percent on investments up to £100,000, 0.5 percent up to £500,000 and 0.3 percent on anything above £500,000. For most of the company’s customers, this will equate to a fee reduction.
CEO of Nutmeg, Martin Stead, said, “Fees are the only part of your investment performance that you can control. The fees you pay can make a significant difference over time. Even a tiny reduction can make a massive saving over 20 or 30 years.”
“Our technology enables us to serve our customers with high-quality investment portfolios at a much lower cost than traditional wealth managers, and we are pleased to be able to make our fees even more competitive as we enter the New Year and Isa season”, he continued.
Nutmeg’s latest fee reductions and restructuring come after changes in early 2016 where the company reduced its starter fee of 1 percent to 0.95 percent and overhauled its fee bands. The company has yet to post a profit despite it reporting to have approximately £600 million assets under management and 25,000 customers. According to the company, the fee changes have been a result of technological advances. However, many pundits believe that the reductions are due to other low-cost rivals launching in the UK. Leading robo-advisors in the UK market include Scalable Capital, Wealth Horizon, Wealth Wizards, Wealthify and Fiver a Day.
Nutmeg attracted £42 million pounds in funding in 2016. The company hopes to post its first profit this year.