UK-based fintech firm Nutmeg announced on Wednesday it has joined forces with JP Morgan Asset Management to launch Smart Alpha portfolios. Nutmeg reported that Smart Alpha portfolios are underpinned by the duo’s shared commitment to sustainable investing.
“Today, Nutmeg and J.P. Morgan Asset Management have joined forces to create a truly pioneering product that builds on both our core strengths: Nutmeg’s technology and digital experience and J.P. Morgan Asset Management’s market insights and deep research expertise. The result of this new synergy is a product that sits at the intersection of passive and active management.”
Nutmeg also revealed that the portfolios are designed with the potential to achieve alpha (returns above the market) for clients in three ways:
- The use of J.P. Morgan Asset Management’s multi-asset specialists, a team with a 50-year history of investing for institutions and professionals worldwide. These specialists inform Smart Alpha portfolios’ long-term (strategic) asset allocation.
- Smart Alpha portfolios have the ability to be flexible around this long-term asset allocation, allowing us to manage risk and capture opportunities at different stages of the market cycle.
- Nutmeg and J.P. Morgan Asset Management have added to these capabilities a means to make smart security selections within active exchange-traded funds (ETFs).
Nutmeg went on to add:
“Smart Alpha portfolios represent an evolution in investing because it brings together Nutmeg’s technology with J.P. Morgan Asset Management’s research intelligence, and combines this partnership in a product that uses both active and passive ETFs with the aim of achieving market-beating returns.”
As previously reported, Nutmeg is described as the UK’s first online “discretionary investment management company.”
“Nutmeg is changing the way people manage their money. Specializing in investments, ISAs and pensions, our online investment management service is intelligent, straightforward and fair.”
