The returns from investing are top of most people’s minds. We publish the performance of our fully managed portfolios and you can always see the returns of your investments when you sign in to your account.
The Nutmeg investment approach is based on diversification and keeping costs low. Regardless of short-term ups and downs in the market this approach has shown to do well over the long term, which is the mindset we encourage our customers to take.
Please also remember that past performance is not a reliable indicator of future performance.
Fully managed portfolios
Fixed allocation portfolios
We have almost finished collecting the data for our fixed allocation portfolios and hope to publish the returns for this portfolio in the near future.
You can explore how these portfolios could have performed over the last 20 years on the fixed allocation page under historical returns.
If you already have a Nutmeg account
If you already have a Nutmeg account, by signing in on the web or our mobile app, you can always see the returns of your pots and overall portfolio as a gain or loss updated using prices from the most recent close of business.
- £ Returns are shown after accounting for accrued dividends and management fees.
- % returns are shown as a simple return based on the gain or loss divided by the current value.
Investment performance can be calculated in different ways and it’s important to understand the effects of the calculation. The simple return, for example, is affected by the timing and amount of the money you pay in or withdraw from your account. If you have experienced a gain, paying in more will lower the % gain shown, while withdrawing will increase it. We are working on providing a second performance measure known as time-weighted rate of return that takes these factors into account.
When do you update the returns?
We update published returns for our fully managed portfolios shortly after each calendar quarter. Returns shown in your account are updated each business day, where stock markets are open.
How do you manage portfolios to improve returns?
You can read or watch our latest investor update to get the latest on our portfolios and the markets from our investment team. Or you can subscribe to our Nutmeg Youtube channel to hear from our investment team each month.
Our fully managed portfolios are monitored daily by our professional investment team looking to manage risk and take advantage of market trends by making adjustments to your asset allocation.
Our fixed allocation portfolios are designed by our team and automatically rebalanced to stay in line with your chosen risk level. Beyond that we keep our hands off.
Judging the performance of these type of investments over a short period will rarely give a fair representation of how they are likely to do over the long term.
Whilst we can't guarantee a positive return over the long term, the longer you stay invested, the better chance you have. See our article on the facts about long-term investing.
Why don’t my returns match your published returns?
There are several common reasons why the returns you see on your account won’t align with our published results. Here are explanations that account for most discrepancies.
Simple vs time-weighted rate of return and the effect of contributions and withdrawals
The % return figures shown in your account are a simple calculation of the gain or loss (after fees) divided by the current value. They are affected by the contributions or withdrawals you make. Contributions will generally lead to understated performance figures, and withdrawals to overstated figures. If you’ve made positive contributions to your portfolio since starting your Nutmeg account it will have effectively diluted the return you see from the return your investments have generated.
For example, if you currently have a £10,000 portfolio made up of £9,000 in contributions and £1,000 in gains, we'd show performance of +10% (£1,000 divided by £10,000). But if you add another £10,000, that figure would fall to +5% (£1,000 divided by £20,000).
We're currently working to give you a clearer picture of your returns that takes into account your contributions and withdrawals — known as time-weighted returns. It is calculated by compounding the daily returns of your account over any chosen period. It is generally preferred to other measures such as simple return because it is not sensitive to the timing of when and how much money you put in or took out of your account.
Different time periods
To see similar results you need to be comparing similar investment strategies over the same time periods. If you invested at different time periods from those shown you’ll experience different market performance. This can sometimes make a large difference. Over the past twenty years, the UK stock market returned 13.9% per year, before fees. If you missed the ten best days over that period your return would have been just 7.1% per annum (Source: Macrobond, FTSE All Share Total Return GBP, 31st December 1996 – 31st December 2016. Read Our top six principles of investing everyone should know).
Different fee rate
Our published performance is calculated after Nutmeg management fees, using the weighted average rate paid by Nutmeg clients of 0.82% per year including VAT prior to 01/02/2016, 0.72% between 01/02/2016 and 01/02/2017 and 0.64% thereafter. Returns also account for investment fund costs and the effect of market spread. Dividends have been included on an accrual basis.
These fee rates likely differ from your personal fee rates, which are based on your portfolio value and chosen investment style. Learn more about investing costs and charges.
Changing risk levels
If you changed the risk level of your portfolio at any time during the period it will not be directly comparable to the published results.
If you have more questions please get in touch.