Moneyfarm Assets Exceeded 5 Billion, +26% Assets Invested in Sustainable Portfolios

Moneyfarm, a financial consultancy company with a digital approach, has exceeded 5 billion euros in assets globally, and, in the first half of the year, the assets invested in sustainable portfolios increased by 26% compared to the same period last year, as well as the clients who opened at least one ESG portfolio (+10%).

These results show a positive trend in the business, despite the challenging market conditions and the global cost of living crisis having severely impacted the asset management industry in terms of collections and returns (net collections of the industry in Italy have decreased by 11 billion euros since the beginning of 2024 according to Assogestioni).

In this scenario, Moneyfarm has nevertheless seen double-digit growth in assets and clients thanks to a positive development trend for internal and external lines, also following the recent integration of Profile Pensions, a digital pension consultant in the United Kingdom: compared to the first half of 2023, the company has recorded a 51% growth in total assets, now reaching 5 billion euros, and 23% in active clients, currently over 130,000.

Over the past year, the financial consultancy firm, which was founded with the aim of making savings management simpler and more accessible through a combination of technology and traditional consultancy, has expanded its offering of investment solutions to become a “total wealth partner” for its clients, standing alongside them to help them take care of their assets and respond to their needs in a 360-degree way.

First with the launch of Thematic Portfolios, a component that clients can add to managed portfolios to focus on the major trends of our time, then with Liquidità+, a portfolio of money market funds suitable for those with a cautious approach to the markets and, finally, with the major innovations of Moneyfarm Sicura, an insurance investment solution developed with CNP Vita Assicura, and Conto Titoli, an administered solution that offers a careful selection of financial instruments, with the support of Moneyfarm consultancy and an immediate user experience in a completely digital environment.

First half of 2024: a snapshot of Moneyfarm customers in Italy

The typical Moneyfarm customer appears increasingly aware of the importance of protecting their savings and making them grow over time: the average investment per customer has grown by over 10% compared to the first half of 2023. Women now represent 25% of the customer base and Millennials remain the most represented demographic, with 40% of customers between 30 and 44 years old.

The very young Generation Z, those born between 1996 and 2010, are also growing and have come to represent 10% of the Italian customer base. As for the level of education, graduates are around 80% of the total, with 16% having a degree in economic-financial disciplines. The website and the app are their first points of contact with Moneyfarm but they can also count on different direct communication channels with financial advisors (via email, chat, telephone and video call).

The 120,000 interactions between clients and advisors, which grew by 70% on an annual basis, and the 12,000 appointments booked in the first 6 months of this year demonstrate the support of expert professionals capable of guiding and directing savers on their investment journey.

The ESG trend: growing masses and socially responsible investors

The analysis of the customer base also confirms the success of Moneyfarm’s ESG proposal: in the first half of the year, the assets invested in sustainable portfolios increased by 26% compared to the same period last year, as did the customers who opened at least one ESG portfolio (+10%). At the same time, the number of customers choosing sustainable portfolios has also grown, mostly Millennials and Gen X, respectively 40% and 27% of the total ESG investors. As of June 30th, 2024, new ESG portfolios opened by customers were 31% of the total globally.

From a demographic perspective, there is a much higher interest in socially responsible investments among Italian female customers : in fact, 35% of women have opened at least one ESG portfolio today, compared to 29% of men. And, still in Italy, it is equally interesting to contradict the common belief that the new generations are the most sensitive to the issue of sustainability, at least from an investment point of view, since it is among the Baby Boomers (56-74 age group) that Moneyfarm finds a higher adoption than any other age group (they are 32% against 27% of Millennials and 29% of Gen Z).

Moneyfarm has always placed the sustainability of investments at the heart of its business model, a commitment demonstrated by the recent achievement of the B Corp Certification, a recognition that attests to the commitment to meeting high standards of social and environmental performance, responsibility and transparency, values ​​that have been part of Moneyfarm’s DNA since its foundation.

An even more significant achievement if we consider that the asset management industry is still under-represented within the B Corp community: of the over 8,400 companies that are part of it globally, 214 are “Investment Advisors”. In the first six months of 2024, the B Corp certification was joined by another recognition, namely entry into the FT1000 Europe’s Fastest Growing Companies 2024 , the annual ranking that the Financial Times produces to select, from tens of thousands of European companies, the thousand companies that have grown most rapidly.

“Over the past year, we have dedicated time and energy to expanding our offering of investment solutions, with the aim of being able to provide a concrete response to the ever-evolving needs of our clients, and the results demonstrate that we are on the right track,” said Giovanni Daprà, Co-founder and CEO of Moneyfarm, “Our ambition, for the near future, is to continue at a rapid pace on the path of expanding our offering with a view to long-term wealth planning, remaining in the wake of that hybrid model of financial consultancy of which we are pioneers in Italy and Europe.”

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(Featured image by Sean Pollock via Unsplash)

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First published in ESG NEWS. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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