Moneyfarm launches four thematic investing portfolios

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

Digital wealth manager Moneyfarm is launching thematic investing portfolios.

There will be four portfolios to choose from that are invested 100 per cent in equity with underlying ETFs for mid to long-term investing.

There are three distinct investment options — technology and innovation, demographic and social shifts, and sustainability — and 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 review the thematic compositions annually in order to identify any new megatrends, with a focus on high-yield returns over the long-term, avoiding undue risk and volatility.

To do this, the platform will only offer a capped proportion of investments to be exposed to thematic investing Daprà said.

Investors with a minimum of £10,000 will be able to allocate a capped proportion to complement their core investments, supported by 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.”