As part of introducing fixed allocation portfolios on 16 January 2017, we created a new fee structure that lowers fees across the board and guarantees that every customer gets the best available fee rate, every day. The fee rates below are yearly percentage figures and include 20% VAT that is paid to the government.
Here’s how it works:
Fully managed pots
The standard fee on managed pots is 0.75% on the first £100k and 0.35% thereafter. All your fully managed pots, including your pension if you have one, are combined together when calculating the fee.
If you have 2 managed pots, each with £60,000, you’ll be charged 0.75% on the first £100,000, and then 0.35% on the remaining £20,000, for an effective combined fee rate on your managed pots of 0.683%.
Fixed allocation pots
The standard fee on fixed pots is 0.45% on the first £100k and 0.25% thereafter. All your fixed allocation pots are combined together when calculating the fee.
If you have 2 fixed pots, each with £60,000, you’ll be charged 0.45% on the first £100,000, and then 0.25% on the remaining £20,000, for an effective combined fee rate on your fixed pots of 0.417%.
If you have a promotion applied to your account, you’ll see it indicated on your pots, and your fees will be charged at the appropriate promotional rate. In the rare cases when a promotional rate might exceed our standard rate, we’ll charge the standard rate. No matter what, we always charge the lowest rate available to you on any given day.
Your portfolio and pot values are always shown after fees
Your portfolio value and the value of any Nutmeg pot is always shown with any management fee and VAT accrued to date already deducted. You don't have to whip out your calculator to find out how much you really have.
Fees are collected at the end of each month
Our fee is automatically deducted from the cash available in your Nutmeg account at the end of each month — there's no extra payment to make and we don't access your bank account.
Because the daily value is shown reflecting a deduction for fees accrued to date from that month, your daily value will appear slightly lower than the current market value of your investments minus the total of fees charged to date.
Where you can see your fees
You can see the fees that have been deducted from your account at any time within your account activity in the Investment activity tab. Management fees show up as Fee, with VAT paid on the fee as a separate item.
You can also see the fees deducted from your account as a whole, each pot you own, and a pension if you have one within the Details page for your overall portfolio or an ISA or General Investment pot, or on the Summary tab for a pension.
How fees are calculated
Fees are calculated on a daily basis as a percentage of the total value of your assets under management — so, 1/365th of your fee rate applied to the value of your portfolio on that day. As the value of your investments fluctuates, and as you put money in or take money out, the daily fees owed will change accordingly. During the month, these are calculated as accrued fees.
If you view more details on a Portfolio or a pot you can see the total amount of accrued fees. At the end of the month, the fees accrued for that month will be deducted from your account automatically and you will see them as a transaction in your Investment Activity.
You don't pay any fee on cash before it is invested in a Nutmeg pot.