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Nutmeg isa doing terribly do I take the loss and transfer to a different provider?

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  • Albermarle
    Albermarle Posts: 27,739 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    While I understand the current economic climate is difficult, the fact that the uk stock market has just hit an all time high makes me think Nutmeg isn't all that great.

    I have not checked the composition of Nutmeg funds, but normally all these types of funds only have a minor % of funds invested in the UK stock market. Also the recent upturn in the FTSE makes a change as its performance in recent decade has been pretty poor.

    So the fact that the FTSE has hit an all time high is only for the headline writers, and will have had little impact on most investors.

    FYI- The UK financial markets account for about 4% of the global market. The US is about 65% I think.

  • emwi
    emwi Posts: 16 Forumite
    10 Posts Second Anniversary
    Thanks for your replies.
  • 492800
    492800 Posts: 192 Forumite
    Part of the Furniture 100 Posts
    Can I ask what you ended up doing?
    I'm in a similar situation so I'm just curious 
    --- Hitting the thanks button as often as is needed ---
  • ColdIron
    ColdIron Posts: 9,814 Forumite
    Part of the Furniture 1,000 Posts Hung up my suit! Name Dropper
    OP hasn't been active since March 15th 2023, doubt they will respond
  • emwi said:
    Thanks for your replies. The ISA is a socially responsible one (score 7.1%) and I have put my risk level at 6/10. My information about comparison comes from https://www.nutsaboutmoney.com/reviews/nutmeg# which says: 'If we compare with Moneyfarm, another popular digital wealth manager in the UK, and using a similar risk level as we have used for Nutmeg, over the last 5 years, they have grown 12.9%. That’s pretty amazing considering the current economic climate, but it’s also 3 times more than Nutmeg.'

    I understand that stocks go up and down and I think that by choosing high social responsiblilty I have probably missed out on a share of the massive profits made from oil and weapons manufacture however, it does seem that Nutmeg aren't performing particularly well anyway.

    While I understand the current economic climate is difficult, the fact that the uk stock market has just hit an all time high makes me think Nutmeg isn't all that great. I will not need the money for at least five years unless there's a big unforseen financial emergency. So, stick it out or move?

    I felt as you do about Nutmeg’s performance and so moved my investments. Am much happier now.
  • Exodi
    Exodi Posts: 3,870 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Combo Breaker
    edited 9 September 2024 at 10:22AM
    Linton said:
    Looking at the composition of the OPs investment (Socially responsible 6/10) one sees that it is a pretty standard 60/40 equity/bonds portfolio constructed from about 18 indiviual country and bond index funds with a country allocation fairly similar to VLS60.  So no reason for it to have behaved very differently to other similar funds.

    We dont know what the OP means exactly by "transferring over the past couple of years".  Exactly when the transfers took place will make a great difference to the gains/losses.   Over exactly 2 years VLS60 has returned about 1.5%.  But from December 2021 it returned -7%.

    There are other factors:
     - going for sustainable funds means the OP has missed out on the very lucrative increase in the price of the oil/gas companies.
     - are the stated results before or after charges?
     - comparisons of 1-2 years are pretty meaningless.

    So from the evidence available I see no convincing evidence of the Nutmeg fund underperforming equivalent funds over the past 2 years..
    You can see the OP's funds performance exactly on their website:

    https://www.nutmeg.com/socially-responsible-investing

    Scroll down just over half way to 'Past performance and asset allocation' and set Risk level to 6/10.

    (based on the OP's comment: "The ISA is a socially responsible one (score 7.1%) and I have put my risk level at 6/10").

    For ease, performance is as follows:



    The OP says that 'Over the past couple of years I have transferred £60,000' which suggests it was invested over time, but I can't see how this can be accurate.

    The only way the OP's sums make sense is if they were to have deposited a lump sum of £60k at the peak near the start of 2022, which would now be worth about £56k based on the data above (which is exactly the amounts the OP references).

    Unfortunately I suspect the OP is a victim of investing at the peak, just before Russia invaded Ukraine and subsequent economic cost of living crisis's (and not being invested in assets that might benefit from such an event).
    Know what you don't
  • Exodi
    Exodi Posts: 3,870 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Combo Breaker
    Sorry, just seen this post actually dates back to 2023 and got necro'd.

    I guess the above is still valid, just swap the War in Ukraine for Covid  :D
    Know what you don't
  • artyboy
    artyboy Posts: 1,591 Forumite
    1,000 Posts Second Anniversary Name Dropper
    There's always going to be people investing at market peaks and then wondering why over a short period, they haven't done well.

    And I know that robo-investing can be seen as a bad compromise between IFA and DIY, but personally I don't think Nutmeg is a poor performer, especially when like me you have a lower than standard management fee. I keep some in a SIPP there at the highest investment risk level and even with fees it's kept pace with my DIYing over the past several years (needs a longer period really for me to make a proper assessment, but so far so good).
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