Moneyfarm Introduces Four Themed Investing Portfolios

The four new portfolio options will focus on four macro trends: technology and innovation, demographic and social shifts, sustainability, and a combined “multi-trend” option.

Moneyfarm, a digital wealth manager, is putting out thematic investment portfolios.

For mid- to long-term investing, there will be four portfolios to choose from that are all 100% invested in ETFs that track the stock market.

There are three different ways to invest: technology and innovation, demographic and social shifts, and sustainability. There is also a fourth “multi-trend” portfolio that combines the three macro trends.

“At Moneyfarm, we believe that how people invest, and how they control their investments, play an important role in making the world better,” Moneyfarm CEO Giovanni Daprà said.

“During our conversations with clients, we hear time and again requests for Moneyfarm to offer solutions that allow them more say in what industries they support.

With the core-satellite approach to thematic investing strategies, Moneyfarm will empower clients to actively allocate part of their portfolio to select themes and stories that resonate with their worldview.”

Moneyfarm said it will look at the thematic compositions every year to find any new megatrends. It will focus on long-term high-yield returns and avoid too much risk and volatility.

To do this, Daprà said, the platform will only allow a limited number of investments to be made in thematic investments.

Investors with at least £10,000 will be able to add a limited amount to their main investments, with help from a Moneyfarm investment consultant and machine learning insights.

“Our rigorous approach, supported by machine learning technologies, guides and supports the investor through the world of thematic investing, explaining strategies and helping the investor to make informed and appropriate decisions,” Moneyfarm chief investment officer Richard Flax said.

“As an Asset Allocation team, we constantly track emerging megatrends that we may wish to consider, and respond to the ever-changing needs of our clients. Our objective is to always provide investors with cutting-edge tools to improve and personalise their portfolios.”