Nutmeg - Investment Management - Thoughts?

Sobryma

masonic wrote: »

Nutmeg portfolios are generally composed of ETFs and they have 10 portfolios corresponding to a risk scale (1 - Cautious to 10 - Aggressive). A mid-risk portfolio (45% bonds, 35% UK, 10% World ex UK, 10% EM) has a volatility of 9%.

I have had a dig if you setup an account and just walk through the process this is very similar to their Profile 5 asset allocation.

FunnyFakingSexDirt

Hi guys,


I have invested some money into Nutmeg recently and have split into 3 funds (Mid to High Risk)


Would those that have posted comparisons, suggest my money had better value elsewhere in your opinion?


I, like the OP, liked the simple/clear layout , with charts and graphs.


However the main factor is, of course, the return on my investment.


Would (for example) Vanguards equivalent funds be better recommended because of fees, previous returns, and safety of my funds?


Apologies for my simple questions, I am relatively new to Stocks and Shares, and just want to ensure my money is safe, and in a "good" place. Thanks.

masonic

FunnyFakingSexDirt wrote: »

Would those that have posted comparisons, suggest my money had better value elsewhere in your opinion?

In essence, there seem to be cost inefficiencies in their chosen investment vehicles, on top of that they are slapping on a high management charge, and others are offering similar products performing better and with lower charges. To quote dunstonh above: "So, to sum it up, they dont look very attractive as an investment option."

I don't think you'll be compromising on simplicity or on charts and graphs if you move elsewhere and buy into one of the other products mentioned. If the aesthetics are very important to you, go along to Hargreaves Lansdown and pay a premium price for first class service. Otherwise, you'll probably find cheaper platforms such as Charles Stanley Direct are quite sufficient for your needs.

Even though you might just invest into a single diversified fund like Vanguard Lifestrategy for now, you'll have a lot of flexibility with these other platforms, which might be valuable in the future.

Sobryma

I have received Benchmark data from Bestinvest showing all their portfolios against ARC Benchmarks.

While Nutmeg are apparently relatively good against ARC benchmarks their portfolios appear much more volatile and so not a true like for like with Bestinvest despite being much lower cost. They have also not been around through a period of poorer market performance.

They were not been able to provide me with an FE Risk equivalent arguing that it is not a good measure of risk but did not come forward with an alternative.

I then requested equivalent data to that provided by Bestinvest - which was pretty standard 3,6,12 month 2 year 3 year etc. they were not able to supply this as they do not provide more detail than the charts on the webpage.

I know discretionary managers are generally not a transparent breed but .......

I do wonder how filtered their performance data actually is - note under the charts they do state:

"The returns shown here are regarded as simulated as they do not represent a single client account or an average of customer returns"

Then explain how they are put together.

They do offer an interesting option but the lack of transparency does concern me.

moneyfoolish

Sobryma wrote: »

I have received Benchmark data from Bestinvest showing all their portfolios against ARC Benchmarks.

While Nutmeg are apparently relatively good against ARC benchmarks their portfolios appear much more volatile and so not a true like for like with Bestinvest despite being much lower cost. They have also not been around through a period of poorer market performance.

They were not been able to provide me with an FE Risk equivalent arguing that it is not a good measure of risk but did not come forward with an alternative.

I then requested equivalent data to that provided by Bestinvest - which was pretty standard 3,6,12 month 2 year 3 year etc. they were not able to supply this as they do not provide more detail than the charts on the webpage.

I know discretionary managers are generally not a transparent breed but .......

I do wonder how filtered their performance data actually is - note under the charts they do state:

"The returns shown here are regarded as simulated as they do not represent a single client account or an average of customer returns"

Then explain how they are put together.

They do offer an interesting option but the lack of transparency does concern me.

For your interest, I have a mix of levels 4,6,8,10 with Nutmeg and my figures since I invested on 09/01/2014 are as follows:-

Total To Date:- +8.62%
YTD:- +4.11%
Last 1 Month:- +1.89%
Last 3 Months:- +3.39%
Last 6 Months:- +6.03%
Last Year:- +7.58%

My Level 4 fund currently contains 46% Equities,
Level 6 65%
Level 8 89%
Level 10 98%