Welcome to our new website! Let us know what you think..

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Schroders buys stake in Nutmeg

Schroders buys stake in Nutmeg

Fund manager Schroders is the latest high profile investor in online wealth manager Nutmeg.

Schroders is part of a group of high-profile backers who have invested a combined £18.9 million in the simplified discretionary service.The group also includes Carphone Warehouse founder Charles Dunstone and Icap chief executive Michael Spencer.

Schroders executive chairman Massimo Tosato will take a seat on Nutmeg’s board.

Nutmeg is aiming to transform the wealth management industry by offering access to portfolio managment services to anyone with as little as £1,000 to invest.

Since its launch in 2012 it has registered 35,000 users and customer acquisition in the first quarter of 2014 was 350% higher on the previous year.

Earlier this year Nigel Wray, the serial entrepreneur and chairman of Saracens rugby club, acquired a significant stake in Nutmeg.

The latest fund raising means the firm has attracted £30 million from investors since its launch.

Nutmeg is the brainchild of former Wealth Manager cover star Nick Hungerford (pictured), previously an investment manager at Brewin Dolphin.

'Today's announcement is hugely exciting and goes to show that if you put the customer at the centre of the business, you will prosper. We believe our digital model epitomises the future of investment management,' Hungerford said.

'We've built an award-winning service from the ground up, one that delivers brilliant portfolio management at an incredibly low cost, in a way that is secure, transparent and above all convenient for the customer.'

Tosato added: 'We are delighted to participate in funding Nutmeg’s next stage of growth. For over 200 years, Schroders has been at the forefront of innovation and this financial investment in an innovative and rapidly growing on-line wealth management business will allow us to engage in the digital changes that are influencing the asset management industry for years to come.'

Leave a comment
Citywire TV
Play Gervais Williams: the real reason to worry about Quindell

Gervais Williams: the real reason to worry about Quindell

Citywire AA-rated manager Gervais Williams has argued that sentiment is the true danger to Quindell.

Play AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

Henderson International Income trust manager Ben Lofthouse shares his thoughts on recent developments in the tobacco sector in this video.

1 Play Renewable energy: what I found on my solar farm trip

Renewable energy: what I found on my solar farm trip

Renewable energy is attracting a lot of investor interest, so I headed to the UK's largest solar farm to find out more.

Your Business: Cover Star Club

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Nineteen months on from the merger of Quilter Cheviot chief executive Martin Baines says the deal is now paying dividends.

Wealth Manager on Twitter