Nutmeg is reforming its fees and launching a new fund range as it puts the £42 million it raise from investors last year to work.

The fees levied by the robo wealth manager currently have four bands ranging from 95bps to 30bps.

Under the new structure this will be simplified to two bands. For the first £100k the fee will be reduced to 75bps and it will be 35 bps thereafter.

This will mean that most of its clients will be experiencing a fee cut.

Nutmeg CIO Shaun Port (pictured) told Wealth Manager: 'Everyone pays the first 100k the same but I think more than two thirds of our customers will get a fee cut. No one gets a price increase.

He added: 'There are some people with high value accounts, who have more than £500,000 and they would have seen an increase, but anyone who has that amount will be kept on their existing structure.'

Port also revealed Nutmeg will launch what he termed fixed allocation portfolios in response to client demand.

The five multi asset portfolios' asset allocation will remain unchanged and they will invest in up to 19 exchange traded funds (ETFS).

The strategies, which will cost between 13-22bps to run, will be reviewed every six months and if there is a cheaper or better ETF option it will be swapped in for an existing one.

Nutmeg will charge 45bps for the first £100k invested in the portfolios, which will go down to 25bps thereafter.

The portfolios, which will have a global allocation and will invest across small and large caps, will be automatically rebalanced.

Just before Christmas Nutmeg said it had attracted an additional £12 million from investors to lift its total fundraising last year to £42 million. 

The business also revealed it manages approximately £600 million assets under management on behalf of 25,000 customers.