Influential economist Professor John Kay has made a “substantial” investment in online discretionary investment manager Nutmeg.
Nutmeg has not disclosed the size of the investment made by Kay or the stake he holds in the business. Kay will also act in an advisory capacity at the company.
Kay led a Government-commissioned report last July which criticised the dominance of short-term thinking and emphasis on relative performance within the asset management industry..
Nutmeg’s existing investors include, among others, Tim Draper, who was an early investor in Skype and Hotmail, and Klaus Hommels, a board member of digital music service Spotify.
Kay says: “Nutmeg is providing a better version of intermediation in two senses. One, it is a genuine complete aggregation of your holdings, and secondly it provides a real service of relating the underlying investments to your risk preference, rather than simply being in effect an execution-only vehicle.”
Nutmeg co-founder and chief executive Nick Hungerford says: “To have the support of John Kay, an industry stalwart and expert in this field, affirms our belief there is a need to shake up the investment management industry.
”Having John onboard brings strength to Nutmeg’s mission of providing low-cost, transparent and high-quality investment management.”