The original UK robo advisor is being bought by one of the largest banks in the world.
JPMorgan Chase has entered into an agreement to acquire digital wealth manager Nutmeg for an undisclosed amount ahead of the launch of its new digital bank.
Sanoke Viswanathan, CEO of International Consumer at JPMorgan Chase said: “We are building Chase in the U.K. from scratch using the very latest technology and putting the customer’s experience at the heart of our offering, principles that Nutmeg shares with us."
Neil Alexander, CEO of Nutmeg said: “Nutmeg’s customers can expect the same level of transparency, convenience and service that helped make us a leading digital wealth manager in the U.K. I am truly impressed with the digital experience that Chase is building for the U.K., and this new chapter in our story will see Nutmeg’s customers benefit from a wider range of products and services in the future, and allow us to expand into new markets.”
Nutmeg launched in 2012 and now has 140,000 investors and £3.5bn of assets under management (AUM).
This figure has accelerated in the past year, the firm says, with a growth of 70 per cent year on year. Nutmeg offers ready-made risk-targeted investment portfolios that can be accessed via ISA, Junior ISAs, Lifetime ISAs, pensions and general investment accounts.
It recently launched a new line of portfolios combining active and passively managed exchange-traded funds (ETFs) powered by J.P. Morgan Asset Management.