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Nutmeg eyes pension wrapper as it posts £3.7m loss

D2C online discretionary manager Nutmeg has posted a £3.7m pre-tax loss for 2013 as it prepares to target older investors in a bid for growth.

The company’s annual accounts reveal the fledgling business achieved operating turnover of £103,903 during the year, with operating expenses of £3.8m.

Nutmeg director Nick Hungerford says the firm will expand its product offering in a bid to appeal to a wider range of investors.

He says: “The core product is well suited to first time investors.

“The core product is also well-suited to older investors but does not cover all their investment needs. As older customers are typically wealthier, this is an attractive market segment and we are planning to add income products and a pension that offers a high degree of flexibility.”

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There are 4 comments at the moment, we would love to hear your opinion too.

  1. Income of £103,903 and expenses of £3.8 million………..not sure how long they’ll be around!

  2. The income of £103k probably explains why AUM is never quoted! Although with Schroders cash and know-how behind them things should improve.

  3. if they have income of £100 and the max fee is 1%, then their AUM is about £10m. Assuming all the customers used 100% of their ISA allocation, they would have approximately 9,500 customers.

    This is a great online platform. I am not convinced of their fee structure–it’s still too high relative to a Vanguard portfolio (vs expensive charges of wealth managers), it is a brilliant concept that will be appeal to a new generation of investors who don’t wear ties and run their lives online. Their website and sign up process is best of breed/

    Instead of belittling them, we should be cheering them on—a great opportunity to disrupt the existing wealth management industry, whose main purpose in life is to enrich themselves rather than their clients

  4. If we as advisers operated in this way the FCA would close us down within months of publishing those results.

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