How we manage your investments depends on whether you choose fixed allocation or fully managed portfolios for each pot you set up with Nutmeg. For example, a customer may set up a pension that is a fully managed and also have one or more fixed allocation pots using their ISA allowance, each with different risk levels, timeframes and goals. Learn more about our investment styles
Fully managed portfolios
Our fully managed portfolios are continually overseen by our experienced in-house investment team led by our Chief investment officer Shaun Port.
Fully managed portfolios are watched over daily. In monthly asset allocation meetings the team review the current portfolios in detail and may choose to make tactical changes to the portfolios or keep the allocation unchanged depending on a wide range of factors. At times, the team may make changes outside of the standard monthly process — for instance, as they did for the Scottish referendum in 2014 and the Brexit vote in 2016. The team may also be pro-active in reaction to sudden changes in the market if they deem action necessary.
Fixed allocation portfolios
Our fixed allocation portfolios are designed to be automated and low cost. The portfolios constructed by our team are automatically rebalanced, at no extra cost to you, to stay in line with your chosen risk level. But beyond that we keep our hands off. The target asset allocations — proportions of equities, bonds or other asset classes — are intended to be optimized for the long-term through different market environments without making short term adjustments.
To maintain the portfolios close to the intended asset allocation, each of the five risk-levels are rebalanced automatically based on a threshold of portfolio drift — how far they have drifted from the intended allocation due to market movements. If portfolios exceed this threshold they will be rebalanced back to the original asset allocation on the next of our twice-weekly investing cycles.