Moneyfarm chief executive and co-founder Giovanni Daprà said the funding will be used to incorporate further data points into investment advice offered by the digital wealth manager.
Its total capital raised is now £60m.
“This capital will help bolster our product and investment advice offering as we explore integrating goal-based investments.
“Adding an additional layer of personalisation means that individuals and families will be allocated portfolios that help them achieve their financial dreams, whether it’s a child’s higher-education or building a retirement nest-egg,” Daprà said.
Moneyfarm’s assets under management have increased 50% over the last nine months to £400m.
Daprà said Allianz Asset Management’s deep understanding of fund management will ultimately benefit our customers.
Allianz Global Investors global head of strategy Thorsten Heymann said the investment increases their exposure to “digitally-enabled direct investment solutions”.
“We can make our expertise in active investment management and risk-optimisation available to new client segments by combining it with Moneyfarm’s digital wealth management know how,” said Heymann.
Allianz Asset Management is the holding company for Allianz Global Investors and Pimco.
Venture capital firm Endeavour Catalyst and Italian finance firm Fondazione di Sardegna participated in the series B funding round as new investors. Existing backers United Ventures and Cabot Square Capital also provided further support.
Moneyfarm launched in 2012 and is headquartered in the UK.
FCA findings
Daprà welcomed the Financial Conduct Authority’s (FCA) critical findings on robo-advisers, published last week.
The UK regulator accused robo-advice firms of using unclear charging structures and failing to protect vulnerable clients.
He said: “Its comments provide a useful update to existing guidance to help drive further technology-led innovation in the industry. As a firm we were the first-movers to offer investment advice over guidance. We felt advice was the key gap for many consumers. Pre-FAMR, there was less clarity on how to do this in a way that would fully satisfy the regulator.
Daprà added the “beauty” of automated advice is consistency and accountability.
“We’re able to quickly identify why a customer was offered a particular portfolio and this can be updated when a customer’s circumstances change. We’re also in full control of the algorithms which allows us to make continuous improvements to the advice we offer. This advice is crucial to ensure portfolios are suitable for customers, anything the FCA does to level the playing field will undoubtedly benefit consumers.
“Where some firms don’t provide investment advice, clients could be at risk of selecting portfolios that aren’t suitable to their situation, which could tarnish their experience and trust in such financial products. This is why we have always championed advice over self-selection,” he said.
