Schroders, the London-listed active fund manager, has backed a wealth management business that invests its clients' money purely in passive funds.
Schroders joins a group of entrepreneurs who have invested $32 million in Nutmeg, an online exchange-traded fund (ETF) specialist launched in 2012.
Venture capitalist firm Balderton and Carphone Warehouse founder Charles Dunstone are also backing the UK firm, which has not raised a total of $50 million from its backers.
Nutmeg aims to transform the wealth management industry by delivering sophisticated portfolio management to anyone with as little as £1,000 to invest. Nutmeg says it has grown significantly since its public launch in 2012 and now has over 35,000 registered users, increasing its customer base in the first quarter this year by 350% over the same period last year.
In the past, the firm has not disclosed its assets under management figure.
The new capital raised will primarily be spent on customer acquisition and product development.
Massimo Tosato (pictured), executive vice chairman of Schroders, says: “We are delighted to participate in funding Nutmeg’s next stage of growth. For over 200 years, Schroders has been at the forefront of innovation and this financial investment in an innovative and rapidly growing on-line wealth management business will allow us to engage in the digital changes that are influencing the asset management industry for years to come.”
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