M&G Wealth has launched a direct-to-consumer investment platform called '&me' following its decision to lead a £44.1mn funding round in digital investment app Moneyfarm a year ago.
The platform, which will focus on younger investors and savers in the ‘accumulation’ wealth phase, was built in nine months and employs a handful of investment consultants.
This means clients are able to speak to someone, unlike a robo-adviser model, though these consultants are not advisers.
M&G Wealth will, however, provide advice to Moneyfarm on the composition and rebalancing of the risk weighted portfolios.
"[The platform] is designed to help people invest with a long-term view and approach, encouraging them and helping to educate through the app and the dedicated &me consultants," said managing director at M&G Wealth, David Montgomery.
"This is an easy-to-use investment app that guides people through the process of investing, but more importantly, has real people to help answer real questions.
"Not everyone wants, or can afford, to take full advice and we want to enable more people to save and invest for the financial future they want and dream of."
Alongside the platform, M&G's deal with Moneyfarm also sees the digital investment app provide product wrappers, asset management capabilities, and back office operations.
The &me investment app is now live on Android and iOS, as well as through a web application.
The app will identify customer's comfort with risk, as well as their financial goals, through a "few simple questions" before matching them with one of the six &me portfolios.
There are 'classic' and 'targeted' portfolios.
Classic portfolios are typically lower cost, made up of exchange traded funds and investing in equities and bonds.
Targeted portfolios consist of a blend of actively managed and passive funds, investing in equities, bonds and alternatives.
Once one of these portfolios is selected, the customer then chooses the type of account they want. These include a stocks and shares Isa, Jisa, pension or general investment account.
Customers can call or chat to Moneyfarm's team through the app, as well as book a video meeting with an &me consultant.
The minimum investment to use the &me app is £500. On top of this management fee there is also an investment fund fee.
For the classic range this is 0.19 per cent, and for the targeted range this is 0.42 per cent.
So, if a client invested £20,000 they would pay £14.67 per month in a classic portfolio, and £17.83 per month in a targeted portfolio.
Invested amount Management fee
Up to £10,000 0.75%
£10,000 to £20,000 0.70%
£20,000 to £50,000 0.65%
£50,000 to £100,000 0.60%
£100,000 to £250,000 0.45%
£250,000 to £500,000 0.40%
£500,000+ 0.35%
Source: M&G
Moneyfarm already provides investment platforms to partners abroad, but this is its first white-label deal in the UK.
M&G's decision to lead its investment round at the beginning of last year saw the global investment manager take a minority stake in the business.
Earlier this month, Moneyfarm appointed former Virgin Money boss Dame Jayne-Anne Gadhia as its chair.
