LONDON (ShareCast) - (Sharecast News) - Investment manager M&G's UK-based wealth management arm has struck a deal with digital investment specialist Moneyfarm to provide direct investment services to British consumers.
M&G said on Wednesday that its M&G Wealth division will use Moneyfarm's existing technology, digital capabilities and investment guidance journeys to back its own branded proposition.

The FTSE 100-listed firm highlighted that direct investing in the UK had seen "rapid growth" over the last five years, with an average annual increase in assets under management of 18% to reach £351.0bn at the end of June 2021. It also noted that demand for digital investment services had accelerated, and now accounts for 19% of all UK direct customers, with Moneyfarm being considered one of the "pioneering providers" of this emerging segment of the market.

Separately, M&G will invest a minority stake in MFM Holding as part of the company's latest round of fundraising as the pair will also explore a range of other opportunities to partner in other European wealth markets.

M&G Wealth's managing director David Montgomery said: "With the launch of a direct, mobile-based investment platform, complementing our growing independent, proprietary and hybrid adviser businesses, our customers will be able to access the channel, advice and investment proposition that most suits their financial situation and needs.

"We have been highly impressed by Moneyfarm's innovative approach and look forward to working together to build a simple and effective proposition to serve our next generation of retail customers".

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