Retailer John Lewis has announced a partnership with digital wealth manager, Nutmeg, to launch its first investment products.
Nutmeg and John Lewis plan to launch three new investment products to offer a simple way for first-time investors to consider stocks and shares over traditional savings and bank accounts, after research has found consumers would welcome simple products from a reputable and trusted brand in the space.
The products will also complement John Lewis’ existing financial offering, which includes home insurance and retail credit, and work towards the retailers diversifications strategy that aims to derive 40% of profits from non-retail products and services by 2030.
With the pandemic having led to many people setting more money aside and rethinking finances, a survey of 2,000 UK adults on behalf of John Lewis by OnePoll found that 72% of people said they would consider investing in stocks and shares rather than just putting their money into a current account, but were put off by the complex language such that fewer than 10% of those surveyed had already invested.
In partnership with Nutmeg, the three new investment products launched by John Lewis are:
- Junior ISA for under 16s, offering a tax-free annual allowance of £9,000 that can be accessed once the child turns 18.
- Stocks and shares ISA allowing tax-free returns on an annual investment of £20,000.
- General Investment for customers who have exceeded the tax-free allowance on the Stocks and shares ISA.
Funds will be invested specifically in funds with high Environmental, Social, and Governance (ESG) standards, and customers will be able to get updates on their investments online or by phone.
Amir Goshtai, John Lewis Financial Services Director, said:
The pandemic has been tough for many, but others have managed to save more every month. They’ve also reassessed how they want to spend their money – more than ever, they want to secure their financial future and that of their families. Our products allow people to put money aside and to take that first step into what is often perceived as the complicated world of investments. This is where the trust and love that customers have for our brand combined with Nutmeg’s expertise can make a difference, while making John Lewis even more relevant for life’s big moments; whether that’s saving for a home or preparing for the arrival of a new baby.”
Neil Alexander, Chief Executive Officer, Nutmeg, said:
“Since the start of 2020, we’ve seen a significant increase in people looking to invest in order to build a more dependable financial future for themselves and their families. Nutmeg’s mission has always been to empower nations of investors and there’s never been a more important time to harness this new appetite. Through our partnership with John Lewis, we’re providing an easy-to-use service and investments that meet the growing demand for social responsibility to help John Lewis customers build a financial future for themselves and their families.”