Record Year Sees Nutmeg Surge to Managing Over £3bn in Assets
Nutmeg has today announced that it has surpassed £3bn (€3.48bn) in assets under management (AUM) following 72% year-on-year growth. Continued strong growth in the last 18 months has seen the company maintain its position as the market leader in the digital wealth management sector in Europe:
- a 53% increase in clients to over 130,000, compared to Q1 2020
- increase year-on year AUM by 72%
- 230% year-on-year increase in net inflows
- revenue growth of 66%, as the business moves closer to profitability.
Neil Alexander, chief executive officer, Nutmeg, said: “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. With interest rates at historically low levels, and looking set to stay there for the foreseeable future, many people have either turned to invest for the first time or increasing the amount they invest. Nutmeg has been a beneficiary of this shift, welcoming 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.
“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. 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, we’ve launched integrations with Starling Bank, Yolt, Emma, and Money Dashboard enabling clients to see their Nutmeg investments alongside their other accounts. We were the first wealth manager to facilitate account top-ups via Open Banking payments, making it faster for clients to invest their 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.”