You are here: Home - Investing - Experienced Investor - News -

Gumtree founder launches low-cost digital investment manager

Written by: Danielle Levy
Gumtree co-founder Simon Crookall is looking to shake up the robo-advice market with the launch of a digital investment manager which undercuts the likes of Nutmeg and Moneyfarm.

Crookall has joined forces with his sister Joanna Crookall, who is the chief executive of wealth manager Ramsey Crookall, to launch InvestEngine.

Like other digital investment managers, such as Nutmeg, Moneyfarm and Wealthify (also known as ‘robo-advisers’), InvestEngine will be available for consumers who wish to cut out a financial adviser or wealth manager.

Customers will be able to set up a stocks and shares ISA (and transfer an existing ISA over) or set up a general investment account. The company plans to launch a self-invested personal pension (SIPP) later down the line.

InvestEngine describes itself as the only UK automated investment manager which takes a ‘buy and hold’ approach to investing. It assesses investors against 16 risk profiles and offers portfolios comprised of exchange-traded funds (ETFs), which track the markets. These provide exposure to a range of underlying asset classes, including equities, bonds and gold.

Customers will be charged a management fee of 0.45% per annum, which is one of the lowest fixed rates available across the UK’s digital investment managers. They will also incur underlying charges for the ETFs held in the portfolios, which will typically cost of 0.17%. The minimum investment stands at £2,000.

The new company also takes full custody of customers’ assets and does not outsource to a third-party.

Simon Crookall said: “The vision for InvestEngine is to become the ultimate destination for investors and savers. Over time our offering will diversify and expand to include services like investment advice, pensions, ISAs, SME business accounts, current savings accounts, cash management tools as well as ethical investing options with truly green portfolios.”

How do charges stack up?

By comparison, Nutmeg charges 0.75% for fully managed portfolios up to the £100,000 level, falling to 0.35% thereafter. Customers also incur underlying fund fees, which range from 0.17% to 0.33%. For ISA, general investment and pension pots, the minimum investment is £500.

Meanwhile, Moneyfarm charges 0.7% per year to manage portfolios up to £20,000 in size and has a minimum investment of £500. The management charge falls to 0.6% between £20,000 and £100,000, 0.5% up to £500,000 and 0.4% thereafter. Investment fund fees of 0.3% are also applied.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Four in 10 mums would work more if childcare was cheaper

Nearly four in 10 part-time working women would choose to increase their hours if childcare was more affordable, new research...