Nutmeg has today become the UK's first online wealth manager to reach more than £1bn in assets under management, after doubling its number of customers to 48,700 in the last 12 months.
Year-on-year, the business's assets under management have ballooned by 93 per cent, trampling over the sector's average increase of 17 per cent over the same period.
Nutmeg has also revealed its fully managed portfolios, which were launched five years ago, have outperformed over that time by 3.3 per cent (or 10.3 per cent including costs) compared to the average returns delivered by wealth managers for high-net-worth clients.
“The way people save, invest and manage their money is changing,” said Nutmeg's chief executive Martin Stead.
“When we started Nutmeg, there was no such thing as online wealth management in the UK. Five years on, our model is now becoming a mainstream option for smart investors.”
However, research business Boring Money has pointed out that the UK robo-advice market is still small, constituting just 0.9 per cent of all investments bought online without human financial advice.
The total amount of assets being managed through investments which were bought without financial advice had reached £192.4bn at the end of the third quarter of 2017, compared to £1.7bn being managed by robo-advisers.