Nutmeg to provide transparency on performance

BenchmarkNutmeg, the UK online wealth manager aimed at the mass market, is to benchmark the performance of its portfolios – comprised mainly of passive investments – with other wealth managers.

The firm, which fund manager Schroders holds a stake in, has selected Asset Risk Consultants, a private client and charity investment consultant, to monitor performance using Asset Risk’s Private Client Indices (PCI).

The performance will be used for client reporting.

The PCI are a peer group comparison tool designed to provide an understanding of the performance generated by discretionary private client investment managers.

Matt Lonsdale, head of business development at Asset Risk Consultants, says: “Nutmeg shares the same values as us in that clients’ investment expectations and objections are key and do not believe in using confusing benchmarks that bear no resemblance to reality.”

He says Nutmeg is the first online discretionary investment management company in the UK.

Clients use Nutmeg’s ‘robo-adviser’ software to select a portfolio, and funds are invested mainly in exchange-traded funds.

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