After previewing the news weeks ago, Nutmeg is making good on its plan to provide a personal pension service for investors in the U.K.
“We have listened to our customers and delivered what they truly want,” Nutmeg CEO Nick Hungerford said. “In an industry embroiled in hidden charges, fees and complexity, our transparency promise will be a welcome reassurance to customers.”
The service is a partnership between Nutmeg, which will invest and manage the pensions, and Hornbuckle Mitchell, which will provide technology to serve and administer the pensions.
Nutmeg is an “online discretionary investment manager” in the words of CEO Hungerford. The technology leverages investors’ unique attitudes toward money to help align their goals, investment risk tolerance for the specific goal, and ability to save for that goal into personalized portfolios. Nutmeg actively manages the portfolios, including regular rebalancing, and provides a rewards program that can help lower fees further.
Nutmeg’s
personal pension plans will be tailored to the needs of individual investors, as well, and will also use exchange-traded funds (ETFs) to ensure low-costs and broad diversification. The minimum investment is £5,000. There is an annual management fee between 0.3% and 1% depending on assets under management. The fee includes the VAT.
Above: left to right: Jono Hey, Head of User Experience, and Nick Hungerford, CEO, at FinovateEurope 2012
“The notion of receiving bi-annual pension statements in the post is incredibly archaic,” said Hungerford in Money Marketing’s
coverage of the news. “You should be able to see where your pension pot is invested and how it’s performing whenever you want.”
Nutmeg 
