UK-based digital wealth manager Nutmeg has surpassed £3 billion (€3.48 billion) in assets under management and seen 72% growth over a year.
Nutmeg’s 2020 results also showed that the client base grew to 130,000 – a 53% increase on the firm’s Q1 2020 figure. Net inflows grew 230% while revenue grew by 66%.
The results have also helped bring the firm closer to profit. Launched in 2012, Nutmeg has yet to turn a profit despite being the fourth largest wealth manager in the UK.
According to a spokesman, Nutmeg reduced its losses by 30% in 2020. It recorded respective losses of £18.4 million and £21 million in 2018 and 2019.
Investors have signed up to digital wealth platforms in record numbers over the last 12 months, enticed by low interest rates and more disposable income as a result of lockdowns. Nutmeg chief executive Neil Alexander said that the firm had been a “beneficiary of this shift”.
Alexander has also cited the firm’s use of technology as a key factor in its recent growth.
“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,” said Alexander.
“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,” he added.
In the last year Nutmeg has forged alliances with other digital financial services providers and platforms like Starling Bank, Yolt and Money Dashboard. It has also partnered with traditional asset managers.
In December 2020 it teamed up with JP Morgan Asset Management to launch a series of ETFs, while Schroders is one of Nutmeg’s longstanding shareholders having acquired a stake back in 2014.
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