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 portfolios
The standard fee on fully 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 Nutmeg fee. In addition to the Nutmeg fee, fully managed pots have an average investment fund cost of 0.19%, charged by the fund providers, and an average effect of market spread of 0.10% - these costs will be included in the total fee shown in your account.
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 portfolios
The standard fee on fixed allocation pots is 0.45% on the first £100k and 0.25% thereafter. All your fixed allocation pots are combined together when calculating the Nutmeg fee. In addition, fixed allocation pots have an average investment fund cost of 0.17%, charged by the fund providers, and an average effect of market spread of 0.10% - these costs will be included in the total fee shown in your account.
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%.
How fees are calculated
Fees are calculated on a daily basis on the values and fee rates for your fixed allocation and fully managed pots as explained above — so, 1/365th of your fee rate applied to the value 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.
Your portfolio and pot values are always shown after fees
Your portfolio value and the value of any Nutmeg pot is always shown after all fees - the Nutmeg fee, VAT, the investment fund cost, and the effect of market spread. 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 fees are 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.
During the month, because your daily values are shown after accrued fees they will appear slightly lower than the current market value of your investments minus the total 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, by accessing the Investment, fee's & more menu in a specific pot or your overall portfolio. Nutmeg fees show up as Nutmeg fees, excluding VAT< with VAT paid on the fees as a separate item.
You don't pay any fee on cash before it is invested in a Nutmeg pot.
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.