Nutmeg and JPMorgan launch new range of Smart Alpha investment portfolios with ESG integration


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 ​​investment 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 “leverage the insights of research analysts at JPMorgan Asset Management”.

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 the line builds on the company’s core investment principles

James McManus, Chief Investment Officer at Nutmeg, said: “At 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.

“The 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 “Research Enhanced Index” ETF range was launched in late 2018 and has since outperformed its benchmarks.

Edward Malcolm, UK ETF Distribution Manager at JPMorgan, added: “This is a new style of investing exclusive to Nutmeg clients, leveraging the advantages of ETFs as well as the advantages of active management.

“The 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.

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, “Smart 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.

Compare the best DIY investment platforms and Isa stocks & stocks

When it comes to choosing an investment platform, stocks and Isa stocks or a general investment account, the range of options can seem overwhelming.

Each provider has a slightly different offering, charging more or less for trading or owning stocks and giving access to a different range of stocks, funds and investment trusts.

When choosing the right one for you, it’s important to consider the service it offers, as well as the administration and transaction fees, as well as any other additional costs.

To help you compare investment accounts, we’ve analyzed the facts and put together a comprehensive guide to choosing the best and cheapest investment account for you.

We highlight the main players in the table below, but we advise you to do your own research and consider the points from our full guide linked here.

>> This is the complete guide to Money on the best investment platforms and Isas

DIY INVESTMENT PLATFORMS AND ISAS STOCKS & PARTS
Administration fees Expense Fund negotiation Standard stock, trust, ETF trading Regular investment Reinvestment of dividends
AJ Bell YouInvest 0.25% Max £ 3.50 per month for stocks, trusts and ETFs. £ 1.50 £ 9.95 £ 1.50 1% (min £ 1.50, max £ 9.95) More details
Best investment 0.40% To free £ 7.50 n / A n / A More details
Charles Stanley Direct 0.35% No platform fees on stocks if a trade that month and an annual maximum of £ 240 To free £ 11.50 n / A n / A More details
loyalty 0.35% on funds £ 45 fees up to £ 7,500. Maximum £ 45 per year for stocks, trusts and ETFs To free £ 10 Free funds £ 1.50 equities, ETF trusts £ 1.50 More details
Hargreaves lansdown 0.45% Capped at £ 45 for stocks, trusts and ETFs To free £ 11.95 £ 1.50 1% (minimum £ 1, maximum £ 10) More details
Interactive investor £ 119.88 as £ 9.99 per month £ 7.99 per month in trade credit £ 7.99 £ 7.99 To free £ 0.99 More details
iWeb One-off £ 100 £ 5 £ 5 n / A 2%, max £ 5 More details
Free exchange Free for a standard account £ 3 months for Isa Freetrade Plus with more investments is £ 9.99 / month inc. Isa fresh No funds To free n / A n / A More details
Avant-garde 0.15% Only Vanguard funds To free Free Vanguard ETFs only To free n / A More details
(Source: ThisisMoney.co.uk July 2021. Administration fee shown annually, can be monthly or quarterly)



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