JPMorgan Chase has acquired digital wealth manager Nutmeg for an undisclosed amount ahead of the launch of its digital bank later this year.

The digital wealth manager runs model portfolios that invests entirely in exchange-traded funds (ETFs) and last November, partnered with JP Morgan Asset Management (JPMAM) to launch a range of risk-rated portfolios using ETFs.

The Smart Alpha range offered by Nutmeg includes both active and passive ETFs solely from JPMAM and utilise the firm’s multi-asset solutions specialists.

The acquisition will sit alongside the digital bank, Chase, that JP Morgan is planning to launch in the UK later this year.

Sanoke Viswanathan, CEO of international consumer at JPMorgan Chase, commented: “We are building Chase in the UK from scratch using the very latest technology and putting the customer’s experience at the heart of our offering, principles that Nutmeg shares with us.”

Neil Alexander (pictured), CEO of Nutmeg, added: “Nutmeg’s customers can expect the same level of transparency, convenience and service that helped make us a leading digital wealth manager in the UK.”

Launched in 2012, Nutmeg currently has 140,000 investors and £3.5bn assets under management (AUM), a growth 70% year-on-year.