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Profile: Nutmeg - 'there is regulatory momentum behind us'
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by Danielle Levy on Jul 18, 2014 at 10:25
Although Nutmeg does not interact with clients face-to-face, it offers an instant messaging ‘chat’ option, email contact or clients can call its customer service team. The company is also developing an app, which Port says will be ‘a lot more than just an app’.
‘Can you transact online, get information online and engage with your wealth manager online? For example, chat and get access to the person involved in your portfolio? This is not just passive information but engagement. For us it is more than just an app. Some people just want to know what their portfolio is worth today without downloading a PDF.’
Port highlights the data Nutmeg has already gathered from its clients and those using its website, which he sees as a big plus when it comes to suitability.
‘For us, we would say suitability is a key strength. I think we have more data concerning suitability than a traditional wealth manager and our aim is to build a rich data set to really understand clients,’ he says.
‘We work with Oxford Risk to develop our suitability to get a lot of data, which enables us to understand capacity for loss. We can then test that with more people. It is an iterative process.’
‘Add another 5,000 clients and look at the process. How can you make suitability a living thing rather than just a survey that is on file? By not doing it face-to-face there is no human behavioural bias in it.’
It is this consistent engagement with clients that Port says differentiates Nutmeg from competitors and contrasts with his experience at BDO Stoy Hayward Investment Management, where he was CIO. He says he was slightly removed from clients and had to rely on information about them coming through from relationship managers.
‘It was difficult to get a consistent picture. I feel much closer to clients than I have ever done before,’ he says.
Nutmeg’s ‘anti-complex’ ethos runs through to its investment process, where Port is positive about the firm’s decision to invest primarily in ETFs on account of their transparency, the ease of performance attribution and the granularity of understanding what they are invested in.