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MoneyFarm

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Moneyfarm is a digital wealth manager that offers a cost-effective way to invest with actively managed portfolios and investment consultants, attracting experienced investors keen to delegate. With an online platform and an app, Moneyfarm combines human empathy and financial expertise with the efficiency of technology to deliver personal advice and investment solution to every user.

Headquartered in London, Moneyfarm is one of the largest digital wealth management companies in Europe regulated by the FCA[1] and also authorised by CONSOB to provide investment services in Italy.[2] The company has £1.6 billion of asset under management and its customer base stands at more than 60,000.

Moneyfarm
Company typePrivate
IndustryDigital Wealth Management
Founded2011; 13 years ago (2011) in Milan, Italy
Founders
Headquarters
Number of locations
3 offices
Area served
Key people
Products
Services
AUM£1.6 billion (as of 30/06/2021)
Owners
Number of employees
130
Websitewww.moneyfarm.com

History

Moneyfarm is a digital wealth management company born in 2011 in Italy and launched in 2016 in the UK. Founders, Giovanni Daprà and Paolo Galvani, were driven by a simple vision – to help more people to improve their financial wellbeing by making personal investing simple and accessible through technology.

The company has raised £96 million across five funding rounds. It is backed by Cabot Square Capital, Allianz and Poste Italiane. Both Poste Italiane and Allianz are minority stakeholders.

Moneyfarm has been voted UK’s ‘Best Online Direct to Consumer Investment Platform 2018’ in the YourMoney.co.uk awards.[3]

In 2018 Moneyfarm launched its pension product[4] (SIPP) and won UK’s ‘Best Direct SIPP 2019’ in the YourMoney.co.uk awards.[5]

In 2021 Moneyfarm was recognised in the ‘Best For Digital ISA’ category, which celebrates platforms that provide a great service on either desktop or mobile – or, in the case of Moneyfarm, both. The company was also selected for the ‘Best For Customer Service’ category.[6]

Overview

Moneyfarm offers a range of investment solutions that include:

  • Stocks and Shares ISA[7]
  • Private pension[8]
  • General Investment Account[9]
  • Socially Responsible Portfolios[10] - ESG portfolios

Customers are instructed to create a profile on the platform and answer some questions before they get matched with a good-to-go portfolio and a Moneyfarm investment consultant in order to reach their investment goals. Each portfolio contains a broad, handpicked mix of cost-efficient exchange-traded funds (ETFs). It offers free withdrawals and the ability to exit and avoid further costs.[11]

To target the highest possible returns consistent with the risk level, Moneyfarm uses optimisation algorithms to help their experts choose combinations of different asset types, regions and currencies. Typically, the higher the risk level, the more a portfolio will be invested in stocks and shares, while further down the risk scale, the balance will shift more towards bonds.

Every decision is based on data and research, driven by quantitative techniques and qualitative judgment overseen by Moneyfarm's investment committee. The investment committee’s tactical asset allocation strategy focuses on balancing long-term view with a shorter, one-year perspective. Proprietary quantitative models make the most of short-term market opportunities as they arise. Moneyfarm's strategic asset allocation team look 10 years ahead at the expected returns and volatility of every asset type and how they might react to economic and political developments. Portfolio managers monitor the markets every day to make sure investments are working hard, reinvesting the dividends paid out by assets in portfolios.

References

  1. ^ "MFM Investment Ltd is authorised and regulated by the Financial Conduct Authority as an Investment Advisor and Investment Management Company. Authorization no. 629539". Register.fca.org.uk. 1990-01-01. Retrieved 2016-06-12.{{cite web}}: CS1 maint: url-status (link)
  2. ^ CONSOB, Supervisory authority for the Italian financial products market. "Imprese di paesi terzi autorizzate in Italia con succursale". www.consob.it. Retrieved 2021-08-30.{{cite web}}: CS1 maint: url-status (link)
  3. ^ "Moneyfarm wins Best Online Direct to Consumer Investment Platform at the YourMoney.com Awards | Moneyfarm". Insights. 2018-07-20. Retrieved 2021-08-30.
  4. ^ "Moneyfarm launches digital Sipp". 2018-03-27. Retrieved 2018-05-14.
  5. ^ "Moneyfarm wins Best Direct SIPP Provider | 2019 YourMoney.com awards". Insights. 2019-08-02. Retrieved 2021-08-30.
  6. ^ "Moneyfarm recognised in Boring Money awards | Moneyfarm". Insights. 2021-03-14. Retrieved 2021-08-30.
  7. ^ "Stocks and Shares ISA: What it is, investment options, rules and returns". www.moneyfarm.com. Retrieved 2021-08-30.
  8. ^ "Private Pension Plan | SIPP | Retirement | Moneyfarm". www.moneyfarm.com. Retrieved 2021-08-30.
  9. ^ "General Investment Account - Moneyfarm". www.moneyfarm.com. Retrieved 2021-08-30.
  10. ^ "Socially Responsible Investing | ESG | Invest in the world you want - Moneyfarm". www.moneyfarm.com. Retrieved 2021-08-30.
  11. ^ "How it works | Moneyfarm UK". www.moneyfarm.com. Retrieved 2021-08-30.

Further reading

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