JPMorgan to acquire robo-adviser Nutmeg

JPMorgan to acquire robo-adviser Nutmeg

JPMorgan Chase is to acquire robo-adviser Nutmeg for an undisclosed amount.

The bank announced today (June 17) that it will acquire the firm subject to regulatory approval. It said Nutmeg will ‘complement’ the company's new digital bank, which is planned to launch in the UK later this year under the brand of its US retail offering JPMorgan Chase. 

Sanoke Viswanathan,  CEO of international consumer at JPMorgan Chase, said: “We are building Chase in the UK 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. We look forward to positioning their award winning products alongside our own, and continuing to support their innovative work in retail wealth management.”

Neil Alexander, chief executive of Nutmeg added: “Nutmeg’s customers can expect the same level of transparency, convenience and service that helped make us a leading digital wealth manager in the UK. 

“I am truly impressed with the digital experience that Chase is building for the UK, 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 has £3.5bn in assets but has yet to make a profit since its inception. Its most recent accounts showed the firm made a loss of £21.2m — an increase on the £18.4m loss reported for 2018.

In April the firm said it had seen revenue growth of 66 per cent as it ‘moves closer to profitability’, but did not provide updated bottom line figures.

The firm added that it saw a 53 per cent increase in clients to more than 130,000 in the first quarter of this year, compared with the same period in 2020. Net inflows for the first quarter of 2021 increased by 230 per cent.

In November last year Nutmeg partnered with JPMorgan Asset Management to launch a range of exchange-traded funds for the robo-adviser’s customers. The offering, called ‘Smart Alpha’, will include both active and passive ETFs and each portfolio will hold between 10 and 14 ETFs.