Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Robo Netwealth increases investment as revenue ticks up

2 Comments
Robo Netwealth increases investment as revenue ticks up

Following a year of significant investment, which included upping its headcount by 56%, online wealth firm Netwealth has posted a £4 million loss.

The company said the increase in the loss was due to ‘focused and disciplined investment’ in technology, people and marketing.

Over the year to 31 March, revenue was up 490% to £212,500, with the firm’s average client portfolio size rising 23%
to £388,000.

Average employee headcount for the year was up to 25 from 16. The business does not disclose its assets under management.

Founder and chief executive officer Charlotte Ransom (pictured) said: ‘I am delighted that Netwealth has had another strong year as we continue to execute our strategy of creating a compelling, convenient and affordable discretionary wealth management service fit for today.

‘As a challenger wealth manager, our proposition delivers a cost effective, transparent and flexible service that, importantly, combines human expertise with the power of 21st century technology – this is what the industry has been lacking until now.’

Netwealth was launched in May 2016 and has raised £16.6 million in funding to date from City heavy hitters, including Edward Bonham Carter, vice chairman of Jupiter Fund Management, Harvey McGrath, former chairman of Man Group, and Santander vice chairman Bruce Carnegie-Brown.

The £4 million loss at the online wealth business is far less than some of its robo adviser rivals.

In its latest results, Nutmeg recorded a £12.4 million loss, while Moneyfarm’s reached £14 million.

Meanwhile, Wealthsimple, the Canadian robo adviser, posted a £2.3 million loss over the year to December 2017.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Citywire 20: Investec's du Toit on managing the 'jerk factor'

Citywire 20: Investec's du Toit on managing the 'jerk factor'

Investec boss Hendrik du Toit believes he has become far more decisive over the last 20 years, especially when it comes to managing 'jerk' factor.

Play Citywire 20: Hugh Young's bleak lesson

Citywire 20: Hugh Young's bleak lesson

In the latest video to mark Citywire's 20th birthday, Aberdeen Standard Investments Asia head reminisces about one of the toughest periods in his career.

Play IWD 2019 video: fund and wealth figures define diversity

IWD 2019 video: fund and wealth figures define diversity

To mark International Women's Day, we have spoken to a variety of top fund houses and wealth managers about their definition of diversity, and how they hope to achieve a more inclusive workplace.

Read More
Wealth Manager on Twitter