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Nutmeg and JP Morgan agreement

decotime
decotime Posts: 10 Forumite
Part of the Furniture First Post Combo Breaker
edited 18 November 2020 at 9:08PM in Savings & investments
Hi all,

just wondering what folk think about their new partnership and more specifically the “smart alpha” product?
«1

Comments

  • Alexland
    Alexland Posts: 9,804 Forumite
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    I still get their emails, had a look and fear that by further expanding their investment range they are in danger of confusing their target market. Anyway it didn't take long to determine it's not for me.
  • george4064
    george4064 Posts: 2,877 Forumite
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    Care to share a link to the announcement of this agreement?
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

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  • Got the email for this, might be worth looking into.  I was looking to their pension a little while back but haven't looked so much in the general investing.  
  • Albermarle
    Albermarle Posts: 24,626 Forumite
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    Alexland said:
    I still get their emails, had a look and fear that by further expanding their investment range they are in danger of confusing their target market. Anyway it didn't take long to determine it's not for me.
    Yes , their normal target market might not get it , if they use this sort of language .
    We really wanted to build an ETF solution for our clients, but we didn’t want to limit ourselves to passive solutions. We offer a range of ETFs including passive, smart beta and actively managed ETFs.”
  • Alexland
    Alexland Posts: 9,804 Forumite
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    edited 19 November 2020 at 1:19PM
    Yes , their normal target market might not get it , if they use this sort of language .
    We really wanted to build an ETF solution for our clients, but we didn’t want to limit ourselves to passive solutions. We offer a range of ETFs including passive, smart beta and actively managed ETFs.”
    It's even worse as the actively managed portfolios use passive ETFs and they are also offering socially responsible portfolios so have created a 10 page PDF to explain the differences between their investing styles - how un-robo is that? Their target customer is not going to be particularly knowledgeable about investments (else why would they pay high charges to Nutmeg?) and if anything this complexification just creates more barriers to getting customers to just open the account and dump some money in to grow.
  • grumiofoundation
    grumiofoundation Posts: 3,051 Forumite
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    edited 19 November 2020 at 2:09PM
    Alexland said:
    Yes , their normal target market might not get it , if they use this sort of language .
    We really wanted to build an ETF solution for our clients, but we didn’t want to limit ourselves to passive solutions. We offer a range of ETFs including passive, smart beta and actively managed ETFs.”
    It's even worse as the actively managed portfolios use passive ETFs and they are also offering socially responsible portfolios so have created a 10 page PDF to explain the differences between their investing styles - how un-robo is that? Their target customer is not going to be particularly knowledgeable about investments (else why would they pay high charges to Nutmeg?) and if anything this complexification just creates more barriers to getting customers to just open the account and dump some money in to grow.
    Does seem counter intuitive.

    However nutmeg does seem to be cultivating a Monzo-like following who won’t hear a bad word against it. 

    This is anecdotal of course but having tried to explain that someone that they (or their relatives/friends who had recommended* Nutmeg) haven’t actually invested in Nutmeg and their investments were not actually dramatically different from other investment platforms was a tiring and ultimately futile process. Although as one argument seemed to be that Nutmeg was “different” so I don’t know if a partnership with J.P. Morgan will help this image...

    *to be fair to Nutmeg it does offer decent cashback/refer a friend for small amounts and I think for people starting investing is not a bad product. 
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Alexland said:
    Yes , their normal target market might not get it , if they use this sort of language .
    We really wanted to build an ETF solution for our clients, but we didn’t want to limit ourselves to passive solutions. We offer a range of ETFs including passive, smart beta and actively managed ETFs.”
    It's even worse as the actively managed portfolios use passive ETFs and they are also offering socially responsible portfolios so have created a 10 page PDF to explain the differences between their investing styles - how un-robo is that? Their target customer is not going to be particularly knowledgeable about investments (else why would they pay high charges to Nutmeg?) and if anything this complexification just creates more barriers to getting customers to just open the account and dump some money in to grow.

    However nutmeg does seem to be cultivating a Monzo-like following who won’t hear a bad word against it. 


    Any different to Vanguard?   In the financial services sector easy to create illusions and allow mantra's to float around the internet.  
  • Only time will tell if having active ETFs will pay off. I'm currently on a 1yr no account fee period under the Fully Managed option. I'll be moving to Vanguard once it ends and opening a 100% Lifestrategy fund. I may move back to Nutmeg but the fees would have drop significantly.
  • ratechaser
    ratechaser Posts: 1,674 Forumite
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    I'm genuinely considering Nutmeg, much to my own surprise. There's a better long term fee and relationship management structure available for larger pots which I think makes it a fairly good value proposition for what I'm looking for  (which is a degree of oversight beyond what I'm prepared to invest in).

    Although I work in financial services, that's a very broad industry and doesn't mean I know a huge amount about personal investing, so happy to cede a degree of control here based on overall risk appetite. Otherwise I may find myself starting to tinker, and that's unlikely to be a good thing.

    And although it's not a determining factor, the current Avios promotion is a very nice bonus. Always hard to value Avios accurately but it will significantly narrow the fees gap versus something DIY like Vanguard, even spread over multiple years.
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