John Lewis opens the door to easy-to-use investing as customers look to the future

Thursday 19 August 2021

• Latest move by the John Lewis Partnership to offer products and services where trust really matters to customers 
• Customers can invest as little as £100 for a Junior ISA, and £500 for a general investment account or stocks and shares ISA
• The launch comes as new research reveals the pandemic has made us rethink how and where we spend our money

John Lewis is today (19 August) launching its very first investment products to customers after teaming up with Nutmeg - the UK’s largest digital wealth manager. 

Based on customer research, we know that there is a significant opportunity for a brand customers know and trust like John Lewis to partner with an expert like Nutmeg to deliver simple investments.  

The three new products aim to help those who otherwise would not consider investing and are the latest to be introduced to John Lewis financial services, following the relaunch of our home insurance and retail credit offers earlier this year.  

The launch comes as a survey conducted with 2,000 UK adults on behalf of John Lewis by OnePoll* reveals the impact that the pandemic has had on the way we think about our money, with 52% of people saying that it has made them reassess how they spend and save. 

Those continuing to save £1,000 or more has increased by almost 20% - and over two thirds of people now want to spend that money on new and bigger goals like starting their own business or renovating their home. One in five want to move to a bigger house or relocate to the country, more than a quarter are now planning a future dream holiday and over a third want to do some of “life’s big moments” more quickly, including buying a home, getting married or starting a family.

The survey also showed that 72% of people said they would consider investing in stocks and shares rather than just putting their money into a current account yet 59% of people said they were put off as they had no idea where to start or it was like a ‘different language’ to them.  Fewer than 10% of those surveyed said they already invested.   

We have launched an easy-to-use service to help customers reach their financial targets, no matter how big or small - whether that’s saving to get on the property ladder, helping expectant parents prepare for a new arrival or helping to give someone a financial start in life. 

We have selected three products our customers have told us are most relevant to them, which all invest in funds with high Environmental, Social, and Governance (ESG) standards so their investments are aligned with the values we know are important to them.  This means that customers’ money focuses on businesses which score highly in the areas of carbon emissions, climate change, renewable energy, social impact and ethical practices. Customers can start investing from as little as £100 and choose a timeframe and risk level that suits them.
 

• Junior ISA - A tax-free investment with a yearly allowance of £9,000, which enables parents, guardians and grandparents to make regular contributions to a Junior ISA for a loved one under the age of 16, which only the child can access when they turn 18 
• Stocks and shares ISA - Invest money in stocks and shares ISA and customers won’t pay any tax on their returns. Any growth they make on their yearly allowance (£20,000) is tax-free
• General Investment - Customers can invest in a general investment account if they have used up their £20,000 ISA allowance for the year

Customers can check and update their investments at any time online - much like internet banking. They also have the option to speak to us by calling a dedicated phone line or contacting the team via the website. 

The launch forms part of our plans for 40% of our profits to come from outside retail by 2030, and follows our recent announcement to build 10,000 rental homes in the next 10 years. We have committed £100m over the next five years to quadruple our financial services business.  

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.”

* The OnePoll survey was conducted in July 2021 with 2,000 adults across the UK

John Lewis Finance

John Lewis Finance offers products and services which our customers can have confidence in, delivered with the expertise and service that John Lewis is known for. Our products include home, pet, and car insurance, foreign currency, and our Partnership Card - which enables customers to earn points every time they spend. For details of all our products and services go to www.johnlewisfinance.com.

About the John Lewis Partnership

The John Lewis Partnership owns and operates two of Britain's best-loved retail brands - John Lewis and Waitrose. Started as a radical idea nearly a century ago, the Partnership is the largest employee-owned business in the UK and amongst the largest in the world, with over 80,000 employees who are all Partners in the business. For all intents and purposes, the Partnership is a social enterprise; the profits made are reinvested into the business - for customers and Partners. John Lewis operates 34 shops plus one outlet across the UK as well as johnlewis.com. Waitrose has 331 shops in England, Scotland, Wales and the Channel Islands, including 59 convenience branches, and another 27 shops at Welcome Break locations. Our omnichannel business includes the online grocery service, Waitrose.com, as well as specialist online shops, including waitrosecellar.com for wine and waitroseflorist.com for plants and flowers.

About Nutmeg

Nutmeg is the UK’s largest digital wealth manager (Boring Money: January 2021), offering clarity and transparency to both seasoned and first-time investors as they seek to achieve their financial goals. Launched in September 2012, Nutmeg now manages over £3.5bn on behalf of over 140,000 clients who have sought the powerful combination of an easy-to-use, adaptable investment service and market-leading human advice. Nutmeg is the UK’s fourth largest wealth manager overall and one of the fastest growing (PAM: January 2021), at a time when people are seeking the closer relationship with money that technology can provide. For more information, please see: www.nutmeg.com

Risk Warning

As with all investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest.

John Lewis plc trading as John Lewis Finance acts as an Appointed Representative of Nutmeg Saving and Investment Ltd for the purpose of distribution. John Lewis Investments services are provided by Nutmeg Saving and Investment Limited; authorised and regulated by the Financial Conduct Authority, no. 552016, registered in England and Wales, no. 07503666, with a registered office at 5 New Street Square, London, EC4A 3TW.