Nutmeg Partners With Investment Giant JPMorgan To Offer Users A Range Of “Smart” Ethical Tracking Funds
- New partnership between robo-adviser Nutmeg and JPM Asset Management
- The Smart Alpha range will be managed by JPMorgan’s multi-asset solutions team and each portfolio will contain between 10 and 14 exchange-traded funds.
- Management fees will vary between 0.45% and 0.75%
Nutmeg has partnered with senior investment manager JPMorgan Asset Management to launch a new range of bespoke portfolios.
The Smart Alpha line, which was unveiled today, includes five risk portfolios each of which will hold between 10 and 14 passive and active exchange-traded funds.
They will be managed by JPMorgan’s multi-asset solutions team, providing Nutmeg clients with access to the investment giant’s experience and expertise.
Nutmeg has partnered with JPMorgan Asset Management to launch a new range of portfolios
The range will also be ESG integrated, which means that environmental, social and corporate governance considerations will be taken into account in every research and investment decision.
This area of ââinvestment has been increasingly popular in recent years, and particularly in 2020, with £ 7bn paid into responsible funds by UK investors since the start of the year.
The Smart Alpha Portfolios will include both passive and active equity ETFs that will âleverage the insights of research analysts at JPMorgan Asset Managementâ.
Active equity ETFs will seek to outperform their respective benchmarks through active overweight and underweight positions.
The management fee is 0.75% for funds up to £ 100,000 and 0.35% above. The average cost of the underlying fund is 0.19 percent and the cost of the market spread is 0.07 percent.

James McManus, chief investment officer at Nutmeg, said the line builds on the company’s core investment principles
James McManus, Chief Investment Officer at Nutmeg, said: âAt Nutmeg, our mission has always been to open up the previously exclusive world of wealth management, bringing innovative and technological solutions to more people to help them achieve their financial goals.
âThe Smart Alpha portfolio line is based on our core investment principles and aims to generate superior returns by offering clients the best of both worlds: a multi-asset portfolio that combines the diversification of a passive approach with an active, integrated ESG approach focused on security selection research. ‘
He told This is Money that he knows clients are looking for diversification, not only within their investments but also their investment providers and JPMorgan was the perfect fit because of their expertise, track record and the extent of its resources.
JPMorgan’s ETF service has decades of experience, although its European range was only launched in 2017. Its actively managed âResearch Enhanced Indexâ ETF range was launched in late 2018 and has since outperformed its benchmarks.
Edward Malcolm, UK ETF Distribution Manager at JPMorgan, added: âThis is a new style of investing exclusive to Nutmeg clients, leveraging the advantages of ETFs as well as the advantages of active management.
âThe portfolios currently hold 10-14 ETFs, which are mostly JPM products, but where we don’t have specific hedging in our range, we’ll use a third-party provider such as iShares or Lyxor.
“We need to make sure our portfolios are well balanced and diversified.”

The range will also be ESG integrated, which means that environmental, social and governance considerations will be taken into account in every research and investment decision.
McManus added, âSmart Alpha brings the added power of active security selection to Nutmeg, giving clients the same level of transparency and control they know and trust, but with the potential to leverage excess returns that accumulate over time.
“In addition, Smart Alpha’s active equity ETFs promote sustainable business practices and exclude companies in industries that many clients tell us they would like to avoid.”
The new range is now available exclusively to all Nutmeg Isa, Lifetime Isa, Jisa and general investment accounts customers.
Nutmeg has yet to make a profit after its launch eight years ago. The losses widened to over £ 21million last year.