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JPMorgan Chase buys Nutmeg

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  • Yes just noticed. I have an investment with Nutmeg and it's been performing rather well. Their fees are quite high though and they haven't yet reported any profits. 

    They recently began to offer JP Morgan Alpha managed funds, so this must have been on the cards for a while.

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    To compete with the likes of Vanguard. Needs to boost funds under management. Building scale takes time if done organically.  
  • barnstar2077
    barnstar2077 Posts: 1,648 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    High fees, but running at a loss into the millions, some creative accounting going on there I think! :  )
    Think first of your goal, then make it happen!
  • High fees, but running at a loss into the millions, some creative accounting going on there I think! :  )
    Haha. I'm sure Mr Morgan will sort them out 🤣
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    High fees, but running at a loss into the millions, some creative accounting going on there I think! :  )
    Companies are rarely profitable from day one. As long there's the funding the company can continue. Took Amazon 14 years before it reported a net profit. Backers had deep pockets. 
  • barnstar2077
    barnstar2077 Posts: 1,648 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 17 June 2021 at 4:49PM
    High fees, but running at a loss into the millions, some creative accounting going on there I think! :  )
    Companies are rarely profitable from day one. As long there's the funding the company can continue. Took Amazon 14 years before it reported a net profit. Backers had deep pockets. 
    In Amazon's case they were rapidly expanding, building warehouses and infrastructure.  Nutmeg could be run relatively cheaply by comparison.  If they had 100 or 1000 customers their overheads wouldn't change much.
    Think first of your goal, then make it happen!
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    High fees, but running at a loss into the millions, some creative accounting going on there I think! :  )
    Companies are rarely profitable from day one. As long there's the funding the company can continue. Took Amazon 14 years before it reported a net profit. Backers had deep pockets. 
    In Amazon's case they were rapidly expanding, building warehouses and infrastructure.  Nutmeg could be run relatively cheaply by comparison.  If they had 100 or 1000 customers their overheads wouldn't change much.
    Then we have a very perspective of the past and also business finance. 
  • ivormonee
    ivormonee Posts: 395 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    I believe JPMorgan will be launching a range of direct-to-consumer offerings in the coming months. This may be part of their overall strategy and direction for the UK market.
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    ivormonee said:
    I believe JPMorgan will be launching a range of direct-to-consumer offerings in the coming months. This may be part of their overall strategy and direction for the UK market.
    That could very well be the case. They might, however, overestimate the attraction of Nutmeg - I for one wouldn't be interested in their other offerings if Nutmeg makes those other offerings special. OTOH, they may have concluded that Nutmeg customers would be great prospects for the other offerings they are planning to bring to the UK market.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 17 June 2021 at 6:10PM
    colsten said:
    ivormonee said:
    I believe JPMorgan will be launching a range of direct-to-consumer offerings in the coming months. This may be part of their overall strategy and direction for the UK market.
    That could very well be the case. They might, however, overestimate the attraction of Nutmeg - I for one wouldn't be interested in their other offerings if Nutmeg makes those other offerings special. OTOH, they may have concluded that Nutmeg customers would be great prospects for the other offerings they are planning to bring to the UK market.
    JPM have a stable of highly successful IT's. Built on a globally based investment management framework. Nutmeg gives them the front end consumer window to exploit this. With costs falling all the time. Vanguard does increasingly appear to do little for their fee. The competition is getting more intense. 
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