Nutmeg’s assets under management have hit £3bn for the first time as the digital wealth manager inches towards profitability.
The robo adviser’s assets under management rose by 72% year-on-year, with a 230% year-on-year increase in net inflows, according to figures for the first three months of this year.
Client numbers jumped 53% since Q1 2020 to more than 130,000 as the pandemic sparked a spike in retail investing.
However, the digital wealth manager is still yet to turn a profit, reporting losses of £22m in 2019 and £18.4m in 2018. It reported revenue growth of 66% during 2020 and said the business is “moving closer to profitability”.
Nutmeg chief executive Neil Alexander said Nutmeg has benefitted from the pandemic as those with more disposable income as a result of reduced expenditure on leisure, hospitality, commuting and holidays have looked to make their money work for them.
He added combined with historically low interest rate levels, Nutmeg saw “tens of thousands of seasoned investors wanting to take advantage of a digital-first wealth management service, along with first-time investors looking for the support they receive from our wealth services team in helping them to achieve their financial goals”.
According to Alexander, Nutmeg has launched integrations with fellow fintech providers Starling Bank, Yolt, Emma and Money Dashboard, which enables clients to see their investments alongside other accounts.
Last November, JP Morgan Asset Management announced a collaboration with Nutmeg to deliver its Smart Alpha range. Nutmeg is responsible for setting portfolio objectives, asset class boundaries and risk constraints, as well as the physical portfolio management. The move came a year after Nutmeg’s CIO Shaun Port jumped ship to become a managing director at JP Morgan.
