Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Top economist Kay backs Nutmeg with 'significant' investment

Top economist Kay backs Nutmeg with 'significant' investment

Nutmeg.com has found financial backing in the form of UK economist John Kay.

Kay, who will also act in an advisory capacity, has made a ‘significant’ personal investment, co-founders Nick Hungerford and William Todd said in a statement.

Kay explained his investment follows a surge in clients at Nutmeg.com, in the wake of the implementation of the retail distribution review (RDR) while attributing widespread dissatisfaction in the industry to over-intermediation, ineffective regulation and a severe lack of transparency around charges and fees.

‘To some degree RDR may bring down the cost for investors, however what we’ve been seeing is intermediaries employing a range of devices to minimise the impact, that don’t actually make that much difference when it comes down to it.

'Investors need a simple choice when it comes to intermediation, and development in online technology is the best way of making this happen,’ Kay said.

He added: ‘One of the attractive things about Nutmeg is it is providing a better version of intermediation in two senses- one, it is a genuine complete aggregation of your holdings, [and] the other, it provides a real service of relating the underlying investments to your risk preference, rather than simply being in effect an execution only vehicle.’

The alternative online investment manager offers zero upfront charges, zero withdrawal charges and zero transactional costs, while management fees are 1% or less.

It says that loyalty is rewarded by lowering the management fees, which can be cut to as low as 0.3%.

Former Brewin Dolphin divisional director and Nutmeg.com chief executive Hungerford (pictured) explained Kay's investment would strenghen the firm's position as a 'low-cost, transparent and high-quality investment management' company. 

He said: ‘To have the support of Kay, an industry stalwart and expert in this field, affirms our belief that there is a need to shake up the investment management industry.

'We also believe that transparency is essential - our customers can always see exactly how much they have paid in fees.'

Nutmeg.com is also backed by Todd Ruppert, founder and chief executive of RTR International and former board member and president of T.Rowe Price International, and Daniel Aegerter, Swiss chairman of Armada Investment Group.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter