Digital wealth manager Nutmeg has announced that it has surpassed £3 billion in assets under management following a record 72% year-on-year growth.
The last 18 months have seen Nutmeg’s client base soar to 130,000 - a 53% increase in clients since Q1 2020. This influx of new customers has been matched with robust net inflows of 230%, while a shift toward profitability is in sight with 66% revenue growth.
On the results Neil Alexander, chief executive officer, Nutmeg, comments: “While the last year has been financially difficult for many people, we have also seen many new and existing clients who have been fortunate enough to have more disposable income as a result of reduced expenditure on leisure, hospitality, commuting and holidays.”
Alexander adds that with interest rates looking set to stay at historically low levels for the foreseeable future, many have turned to investing for the first time or increased the amount they invest.
Nutmeg has been a beneficiary of this environment, welcoming thousands of seasoned investors alongside first-time investors in search of the type of support offered by the manager’s wealth services team.
“Surpassing £3bn in AUM and managing investments for over 130,000 people is a significant milestone, for both us and the sector as a whole,” explains Alexander. “Prior to the pandemic, many financial services and investment brands were still looking at how they would integrate technology into their business, whereas for us, it has always been a core pillar of our business.”
“And, as the adoption of financial technology to help people better manage their day-to-day finances has accelerated in the past year, we’ve been able to lead the way in the investment industry.
During the last year Nutmeg launched integrations with Starling Bank, Yolt, Emma and Money Dashboard, and was the first wealth manager to facilitate account top-ups via Open Banking payments, making it faster for clients to invest money in the markets.
“With the FCA recently cautioning investors about the high risks associated with speculative short-term stock-picking - as highlighted by the meme stocks phenomenon - and the volatility of cryptoassets, we continue to work hard to make sure that investors don’t lose sight of longer-term financial goals and the investment strategies that will allow them to achieve these,” concludes Alexander.