Robo adviser Nutmeg sees losses increase to £12.4m

By Daniel Lanyon on 8th October 2018


The digital wealth management platform also saw growth in assets under management and its user base.

Robo adviser Nutmeg sees losses increase to £12.4m

Nutmeg, the first major robo adviser in the UK, has seen its losses widen by more than a third to £12.4m in 2017, according to Companies House filings.

Nutmeg says it saw revenue growth of more than 75 per cent from £2.6m to £4.6m while the firm had more than £25m of net cash in the bank.

In 2016 Nutmeg lost £9.3m. It had £600m in assets under management at in the beginning of 2017, rising to £1bn by the end of the year. However, the firm seems to have landed just a net 3,000 more users in the year. Suggesting the £400m AUM boost came through large accounts and/or portfolio growth in in its existing accounts.

Martin Stead, chief executive officer, Nutmeg, says the firm’s “mission to democratise wealth management” was on a steady course.

“In 2017 we doubled in size and ended the year managing over £1bn on behalf of 50,000 customers, solidifying Nutmeg as the largest digital wealth manager in Europe. We have made investing more accessible to swathes of people who were previously ignored or over-charged by a self-serving industry.”

Nutmeg clearly is also seeing growth from encouraging investors, new to investment, sign up.

It says 40 per cent of its customers have never invested before; 35 per cent are female – compared to a market average of just 26 per cent; and the average age of investors is 40 – around 10 years younger than the industry average.

“What’s more, we have out-performed the average returns of traditional wealth managers (as independently benchmarked by ARC) every year since inception. We have an ambitious growth agenda and we continue to invest in people, technology and marketing to ensure our award-winning service meets the needs of a much broader range of customers than ever before.”


Insurance AI & Analytics USA

Insurance AI & Analytics USA (June 27-28, Chicago) is the only forum bridging the gap between the analytical and data minds and the business transformation leaders. As carriers rush to meet customer demands and deliver continuous business growth without dramatically increasing costs, deploying innovative technologies such as AI, machine learning and advanced analytics can be the only way to remain competitive. But in order to deliver real value to the organization, these innovations must have a real application in the core business areas and directly improve operational efficiency and deliver a seamless customer experience

26th June 2018

Companies in this Article:


More like this:

Robo-advice News Wrap – Monday 12 June

12th June 2017
David Tuckwell

IG Group expands its cryptocurrency trading

21st August 2017
Moriah Costa

eToro plans free share trading

20th March 2019
Daniel Lanyon

FCA highlights robo-advisors’ flaws

22nd May 2018
Daniel Lanyon

Digital wealth manager targets £7m fundraise

17th December 2018
Daniel Lanyon