We take security very seriously at Nutmeg. There are a few elements to our service which we hope will help put your mind at rest.
1. We keep a constant eye on your portfolio
If you open an account and invest with us, we act as your discretionary investment manager. This means that, based on the information you entered on your profile about your time horizon, your attitude to risk and your financial situation, we make all of the investment decisions for you.
If you chose a fixed allocation portfolio this means we can rebalance your portfolio when necessary to automatically keep your portfolio at your chosen level of risk.
If you chose a fully managed portfolio you have the benefit of our experienced investment team adapting your portfolio over time to an ever-changing world, keeping you informed along the way. We're always on top of it, so you don't have to be.
Remember that, as with all investing, your capital is at risk. Regardless of whether you choose fixed allocation or fully managed portfolios the value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest.
2. Barclays and StateStreet safeguard your assets
Like many investment managers, we believe the safest way of looking after your investments is to appoint custodian banks to hold your money and the investments we purchase for you. Our asset custodian is StateStreet Corporation with over $28 trillion in assets under custody. StateStreet serves thousands of investment managers, high-net-worth individuals and major banks worldwide. Your assets are in good hands.
StateStreet will never lend it to third parties or mix it with StateStreet's or Nutmeg's own assets.
Any uninvested cash is kept with Barclays Bank where it is segregated from Barclays' and Nutmeg's own funds.
Your investments and any uninvested cash are therefore protected in the unlikely event that either Nutmeg, State Street or Barclays are declared insolvent. If this were to happen, your Nutmeg account would likely be re-assigned to another financial institution and you would be kept informed.
3. You are protected by the Financial Services Compensation Scheme
In addition, while exchange traded funds (ETFs) are not individually covered, the overall management of your investments by Nutmeg is protected by the Financial Services Compensation Scheme (FSCS) to a limit of £50,000. In addition, any uninvested cash is covered by the scheme up to the value of £85,000. More information about the FSCS can be found on the FSCS website.
Please keep in mind that while you are protected under the FSCS scheme as above, your investment might fall as well as rise due to market performance and any such fall wouldn't be covered by the FSCS.
We hope this has put your mind at rest. Do please get in touch with us if you need any further help.