Moneyfarm Reports “Positive” H1 2022 Despite Market Volatility

The team at Moneyfarm noted that they’re pleased to announce that the firm has seen encouraging growth in the first half of 2022 “across a number of key metrics, despite disruptive geopolitical issues and resultant market volatility.”

One of the clearest ways for them to track the progress of their business is the size of the investments that they manage on behalf of their clients. In this regard, H1 2022 has “seen significant growth vs H1 2021, with [their] assets under management jumping by 46% to exceed £2.3 billion (today, it stands at close to £2.5 billion).”

This increase in their AUM is “partly thanks to significant growth in new clients.” Compared to H1 2021, the first half of this year has “seen a 50% increase in new clients, with 20,000 joining in the first six months of 2022.”

This brings the total number of Moneyfarm investors “to over 90,000.” H1 2022 also “saw a 36% increase in net inflows from both our new and existing clients.”

It has also “been encouraging that we have been able to grow our team, at a time when many are reducing headcounts.” Staff numbers have “grown from 130 in H1 2021 to 195 today, and this is anticipated to reach 220 by the end of the year.”

The firm is particularly happy with these results “given the uncertainty and volatility stemming from the Covid pandemic and Russia’s invasion of Ukraine, which has impacted the wealth management sector both in terms of returns and inflows into the sector.”

An important part of Moneyfarm’s service is their hybrid engagement model, whereby clients have “a dedicated investment consultant that they can reach by phone, in-app, through video call or via webchat.”

The basis of the service is “to offer ongoing support on client investment journeys and to answer any questions or concerns they have regarding how their portfolio fits into long-term financial plan, the wider markets movements or the opportunities for exploring other investment avenues.”

In H1 2022, there were “almost 70,000 one-to-one interactions between clients and Moneyfarm investment consultants by phone, video calls, emails or through the chat facility, and over 12,500 appointments requested by clients.”

The first half of 2022 has “been particularly positive for our newly launched Socially Responsible portfolios.” The data confirms “the growth in customers looking to invest in sustainable investments.”

They launched their new range of SRI portfolios in October 2021, and since then assets have “more than tripled, with more than half of the customers being millennials.” One standout data point is the growth of SRI clients, “especially among women, who saw an increase of 287% compared to the first three months after launch.”

In January 2022, Moneyfarm became “a PRI signatory to further improve how the business operates.” This was “an important milestone and signals [their] commitment to pursuing a corporate culture aligned towards social responsibility.”

Giovanni Daprà, Co-founder and CEO of Moneyfarm, said:

“The first six months of the year have been tough for everyone globally. The S&P 500 had the worst H1 performance since 1970 and a few strands of history and economics have come to a head. While some of these factors such as the war in Ukraine, rising inflation, global supply and trade issues have been shocks, others have been brewing in the background for some time. Central banks and monetary policy helped by keeping the system together, alleviating some critical issues, but after the longest bull markets of all time, a phase of readjustment was to be expected.”

Giovanni added:

“We are proud of what we have achieved and our results for the first half of the year, against the current market and political backdrops, are proof that our business model, made up of human expertise with the most advanced digital technology, is appreciated by an ever-increasing number of investors. This is particularly true when you look at those searching for an innovative and conscious approach to the management of their long term savings.

Giovanni also mentioned:

“Saving for the long term is so important, and with the current cost of living crisis and inflation impacting everyone, it is comforting to know our clients have continued to top up their investments. This is also despite market volatility, which I believe is driven by our customers working with their investment consultant and being aware of the importance of remaining faithful to their long term investment plans by investing even more over time.”

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