Robo-advice  

Moneyfarm to offer low cost wealth management

Moneyfarm to offer low cost wealth management

Robo-adviser Moneyfarm has launched a partnership with Allianz Global Investors which will provide active wealth management at low cost.

It follows Allianz’s investment in Moneyfarm in September 2016 and the service will initially only be available to UK employees of Allianz companies.

While Moneyfarm has expressed doubt that the proposition could become available to the public, a spokesman said it may be offered more widely.

Paolo Galvani, the company’s chairman and co-founder, said: “It is a proof of concept. Once we have the model in place ideally we will stay in the area of subsets of potential clients where we can offer the same concept to a limited amount of people, such as employees or a community.”

Mr Galvani cited Moneyfarm’s recent deal with Uber, which will see it provide an investment service for the company’s drivers, as an example of this.

The new solution, called Moneyfarm powered by Allianz Global Investors, provides low cost active management through the use of institutional share classes.

Portfolios will be made up of Allianz Global Investors and Pimco funds while Moneyfarm will manage all operations.

The investment management process is outsourced to Allianz Global Investors and all decisions are approved by the Moneyfarm investment committee.

Tobias Pross, head of EMEA at Allianz Global Investors, said: “Moneyfarm has been an excellent partner in building an employee offering for us, their timely delivery has enabled us to launch this to our employees during Isa season.

“This gives a strong impression in terms of reconciling automated advice and active management.

“For us, this serves as a pilot to dive deeper into our hybrid model of advisory.”

Moneyfarm is also working on a pension product which Mr Galvani hoped would be ready by the end of the year.

damian.fantato@ft.com