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Moneyfarm company update: A strong start to 2023

As we head into autumn, we’d like to share a quick update with you on all the progress we achieved in the first half of the year. 

Our recent figures show a 15% year-on-year growth in assets under management (AUM), which reached £2.6 billion by the end of June. The number of active Moneyfarm clients also increased by 15%, surpassing 102,000. 

We also welcomed Dame Jayne-Anne Gadhia as our new Chair earlier in the year, further enhancing our senior leadership team.

This momentum carried into July and August, marked by the final completion of the acquisition of Profile Pensions, a pioneering digital pension consultancy. This strategic move increased our AUM by £870 million and we welcomed 24,000 new clients. This signifies a significant step towards achieving our growth strategy, propelling our AUM to £3.5 billion, with over 125,000 active clients in total as of today.

In the first half of 2023, in collaboration with M&G Plc, we launched the &me investment app. Additionally, our partnership with eToro, the online trading platform, resulted in a cutting-edge discretionary managed ISA solution for its clients.

Recognition has also come our way with our inclusion in CNBC’s World’s Top 200 Fintech Companies in 2023. This acknowledgment reflects our commitment to innovation in financial planning, standing alongside just 20 other global digital wealth management firms.

These recent accomplishments underscore our growth trajectory, reaffirming our position as a prominent digital wealth manager in Europe. This progress is especially significant amidst market turbulence and external challenges.

Advancing inclusivity and sustainability

In a sector where female investors are underrepresented, we’re dedicated to being a positive force for change. In the UK, we’ve seen an 8% increase in female clients compared to last year, who now constitute 32% of our client base. 

The first half of 2023 also highlights the growing interest in sustainable investments. Our socially responsible investing (SRI) portfolios, first introduced in 2021, are resonating well, and have been chosen by 42% of clients. Notably, 36% of new UK clients have embraced our ESG portfolios, a 33% increase from the previous year. While in February, we introduced a range of thematic portfolios, allowing clients to invest in key economic trends. 

Giovanni Daprà, Co-founder and CEO of Moneyfarm, said: “A lot of our competitors use the term digital wealth manager, but in reality, I don’t believe that anyone is as advanced as we are in delivering on the breadth and depth of product offering coupled with the strong relationships we have with our clients. Since we launched the business, our approach has been to make investing simple, to provide a range of low-cost diversified portfolios, that takes into consideration the client’s risk tolerance and investing preferences.

“I am very pleased with our results for the first half of 2023 and what we have achieved against the current market and political backdrops. It is further proof that our business model, made up of human expertise in our investment consultants, with the most advanced digital technology, is appreciated by an ever-increasing number of investors. But it isn’t just our direct to consumer offer that is being recognised, we have seen huge interest from financial institutions that want to utilise our technology skills and solutions for their own clients, such as the launch of &me with M&G and the ISA solution for eToro.

“We are transforming the Moneyfarm business focusing on our D2C offer, B2B solutions and strategic acquisitions. Following the completion of our latest acquisition of Profile Pensions, we now manage just under £3.5 billion of assets for over 125,000 customers and we are at the forefront of delivering automated advice to a segment of customers which remain deeply underserved by the market.”

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