Digital bank Starling Bank announced on Thursday it has welcomed Nutmeg, a UK-based digital wealth manager, to its Marketplace. Starling reported that the new service will help its personal and sole tracker consumers connect their banking to their investment accounts and pensions.
“Starling customers with a Nutmeg account can connect to it through the Marketplace, while those without one will be able to sign up through the Marketplace. Once connected, they’ll be able to benefit from Nutmeg’s offering, which includes fully managed and socially responsible pension portfolios, with a minimum investment of £500. For the same minimum amount customers can also benefit from investments in the form of a general investment account and stocks and shares ISAs, and for a lower minimum of £100 customers can invest in a Lifetime ISA or Junior ISA for their children.”
Starling further revealed that there are no fees for signing up to Nutmeg, but there is a fee for investments. Helen Bierton, Chief Banking Officer at Starling Bank, shared more details by stating:
“By developing smart integrations with the third party platforms popular with our customers, such as Nutmeg, Starling is making it easier for customers to keep track of their money wherever it is located.”
Matt Gatrell, Chief Operating Officer at Nutmeg, added:
“We know that helping people to have a clearer picture of their full financial circumstances is crucial, and even more front of mind at the moment. So, we’re pleased to be connecting with Starling, to give Nutmeg investors and Starling customers greater oversight of their finances in order to support them in reaching their financial goals.”
As previously reported, Nutmeg is described as the UK’s first online “discretionary investment management company.”
“Nutmeg is changing the way people manage their money. Specializing in investments, ISAs and pensions, our online investment management service is intelligent, straightforward and fair.”
Nutmeg recently announced it teamed up with JP Morgan Asset Management to launch Smart Alpha portfolio, which is underpinned by the duo’s shared commitment to sustainable investing.
“Today, Nutmeg and JP Morgan Asset Management have joined forces to create a truly pioneering product that builds on both our core strengths: Nutmeg’s technology and digital experience and JP Morgan Asset Management’s market insights and deep research expertise. The result of this new synergy is a product that sits at the intersection of passive and active management.”
Nutmeg further revealed that the portfolios are designed with the potential to achieve alpha (returns above the market) for clients in three ways:
- The use of JP Morgan Asset Management’s multi-asset specialists, a team with a 50-year history of investing for institutions and professionals worldwide. These specialists inform Smart Alpha portfolios’ long-term (strategic) asset allocation.
- Smart Alpha portfolios have the ability to be flexible around this long-term asset allocation, allowing us to manage risk and capture opportunities at different stages of the market cycle.
- Nutmeg and J.P. Morgan Asset Management have added to these capabilities a means to make smart security selections within active exchange-traded funds (ETFs).