The deal is intended to expand the digital wealth manager’s reach in the country, as it will be able to offer AGI’s actively managed funds to its clients.
The asset management arm of Allianz Group led the £40m ($50.7m, €45m) investment in Moneyfarm in May 2018.
In late 2018, the platform entered the German market with the acquisition of Vaamo, which describes itself as the country’s first independent digital wealth manager.
The partnership means Moneyfarm now operates in three countries.
“Our expansion in Germany represents a huge landmark for Moneyfarm as we grow our presence outside of Italy and the UK and look to capitalise on the growth of digital wealth management across Europe,” said Giovanni Daprà, co-founder and chief executive of Moneyfarm.
The multi-asset investment product is in the beta test phase, and will be offered to clients of Vaamo, AGI, and Moneyfarm’s strategic partner 1822direkt, which is a fully-owned subsidiary of Frankfurt-headquartered bank Sparkasse.
It will be then made available across Germany from September 2019.
The nature of the partnership
International Adviser reached out to Daprà, who said: “Allianz has a strong strategic focus on simplicity, being digital by default, and customers being at the heart of everything it does, which align closely with our own strategic priorities.”
He also said that the German firm is a minority shareholder in Moneyfarm, following last year’s investment, but he did not disclose the portion that it holds.
“The launch of this product and expansion into Germany represents a significant milestone in our relationship. We have leveraged our unique partnership to develop an innovative product for the German market, which draws on Moneyfarm’s experience in offering digital wealth services and Allianz Global Investors’ experience of managing mutual funds,” he added.
Adviser still at hand
However, while Moneyfarm is a digital firm at core, clients will still be able to interact with advisers face-to-face.
Daprà told IA: “Whilst the majority of our customers prefer a purely digital experience, our investment consultants are available to provide investment guidance, explain portfolio performance and discuss the decision-making of our combined investment team on chat, the phone or in person.
“This mix of services has been designed with our customers in mind and is constantly evolving to meet more complex needs.”