Robo-adviser founded by ex-Cavanagh pair launches

Robo-adviser founded by ex-Cavanagh pair launches

The robo-advice service launched by the founders of Cavanagh Group has launched to the public today (12 January).

After a soft-launch in December Munnypot has now launched to the wider market.

It has been founded by Simon Redgrove and Andrew Fay, the duo behind Aim-listed IFA firm Cavanagh Group, which was bought by Close Brothers in 2011.

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Their service alerts people, in real time, when their goals are off-track and provides financial advice to help get them back on track.

It also provides a chat-based user interface which advises people on their savings and investment decisions.

Mr Redgrove said: “Wealthy investors have been using first generation robo-advice services for years, but until now they’ve not been accessible to the majority of people, particularly those who have little or no savings.

“We’re aiming to change that with a more intuitive and more cost-effective service that anyone with £25 a month to invest can use. We are determined to help Britain fall in love with saving again.”

Until his company was purchased by Close Brothers, Mr Redgrove was managing director of Cavanagh Group while Mr Fay was chief executive.

Munnypot requires a minimum investment of £25 per month and/or a £250 single investment amount.

It charges a platform fee of 0.11 per cent and an investment fund fee ranging from 0.15 per cent and 0.24 per cent plus a tiered monitoring fee and a one-off fee for advice to set up the pot.

Munnypot’s website includes a calculator showing how much an investor would pay in fees, in pounds and pence, based on their initial investment and monthly contribution.

For example those looking to invest a total contribution of between £250 and £2,500 would pay a £5 one off fee for initial advice and a 42p monthly monitoring fee.