Assets held by the UK first and leading digital wealth manager – robo advisor – Nutmeg have reached £2bn across its 80,000 clients for the first time; this figure doubles the £1bn it reached in November 2017 showing that its growth continues to accelerate, and comes following a shake-up of senior staff in 2019.
Nutmeg has a 36% share of the UK robo-advice market and claims to be the largest digital wealth manager in Europe.
The results followed an institutional raise in January last year, which saw investors, including Goldman Sachs, inject £45m into the business; Nutmeg also raised an additional £3.8m from a crowdfunding campaign in June.
In December, chief executive Martin Stead left, to be replaced by Neil Alexander who had joined Nutmeg in 2017 from retail website secretsales.com; chief investment officer Shaun Port also left, joining JP Morgan in November.
However, Nutmeg’s full year results showed losses of £18.6m – an increase of 50% on the previous year; at that point, the firm had 75,000 clients and £1.8bn AUM.
In announcing its achievement Mr Alexander said: ‘Surpassing £2bn AUM is a significant milestone, not only for us – in part, because we are the first digital wealth manager in Europe to do so – but for the sector as a whole.
‘As many more people look at how technology can help them with their finances, our continued growth demonstrates the growing popularity of the Nutmeg business model.’
The firm launched an online advice business in September, offering financial planning services for £275 (including VAT), and advice services for (£575 inc. VAT).