Pimco parent Allianz SE is deepening its foray into digital wealth management.
After becoming the biggest investor in London-based robo adviser Moneyfarm, the insurance giant will use the online platform to offer some of its actively managed funds directly to retail investors, without them having to go through a bank or a broker.
“We are opening up some of our existing funds for institutional investors to retail investors by creating a new share class designed for digital wealth managers,” said Juergen Weber, head of business and operational transformation at Allianz Asset Management. The robo share classes of the actively managed funds, which will be priced similarly to ETFs, will only be available through Moneyfarm, he said.
The funds — provided by asset management arm Allianz Global Investors — will be part of the seven investment portfolios that customers can choose from that differ by risk level and also include some ETFs, Moneyfarm Chief Executive Officer Giovanni Dapra said. For now, they will only be available in Germany.
Moneyfarm charges its customers a general service fee of 0.3% to 0.9% of the assets managed. On top of that, each portfolio carries a flat fee of 0.2% to 0.3% plus a performance fee estimated to be 0.1%. A portfolio with a medium level of risk, for example, will contain 60% of actively managed funds.