While the last year has been financially difficult for so many people, we have also seen both 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 started investing for the first time or increased 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.
Today, we’re pleased to announce that Nutmeg has surpassed some significant milestones for the business and the sector as a whole: we’re now managing over £3bn (€3.48bn) in assets under management (AUM) following 72% year-on-year growth, on behalf of more than 130,000 investors. 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 crypto assets, 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.
I want to take this moment to thank all of our existing clients for their continued support and for trusting Nutmeg to manage their investments. And I, along with the entire Nutmeg team, look forward to welcoming many more new clients in the future.
Chief executive officer
As with all investing, your capital is at risk. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest.