As trailed by Muckle back in December (Moola to be Quick out of the blocks in 2017; Godfrey tells Blackrock ‘you’re hired’) digital investment manager – robo advisor – Moola has pressed the go button to launch its platform in the UK.
Although launched in beta form, those with from just £200 can now start an investment plan comprising a diversified portfolio of investments constructed according to their objectives and risk-tolerance, constantly monitored and rebalanced by Moola’s team of investment experts.
Moola has set out to be far more engaging than some of its robo advisor peer group and is committed to ensuring that its clients have at least a grasp of the core principles of investing; its mission is to ‘help you understand the key concepts about investing so that you make the right decisions for you and your family.To give you an investment plan and make sure you’re confident you’re on track.’
Moola has five key values that underpin its service, setting out to be:
Affordable – by using low cost ETFs and having a minimum investment of just £200
Accessible – 24/7/365 access to view valuations and assets via any device; 7 day cash withdrawals
Easy to understand – jargon free and simple
Smart – investments diversified across sectors and countries
Enjoyable – the holy grail of financial services – making it engaging and satisfying
High Profile
Headed by CEO and Founder Gemma Godfrey, Moola is the first robo advisor to have a high profile and media savvy figurehead and it could prove the combination that finally succeeds in the oft-quoted ambition of ‘democratising investment’ – engaging those outside of traditional investing circles for the first time.
At first glance the robo-advisor’s website is intuitive and attractive; Muckle will be giving it a thorough road-test in the weeks ahead but first impressions are favourable.
interesting to see if this is the spark that ignites mass-market interest in the rapidly developing robo-advice sector
Users are able to make a lump sum investment from just £200 and then establish an investment plan with ad hoc or regular investments; an ISA wrapper allows you to shelter £20,000 in tax year 2017-8.
There are three customer journeys according to the applicant’s level of investing experience – beginner, intermediate and experienced; the choice is then made between portfolios with three risk profiles – cautious, moderate and adventurous and various scenarios are presented based upon the amount invested, risk taken and time horizion.
Investments are made into Blackrock ETFs, with dealing, custody and settlement provided by Winterflood Business Services – a simple model with proven partners.
Whilst the online application process is slick and it is quick and easy to establish and fund an investment plan, Moola ensures that there is easy access to human support if required.
Despite the fact that it is not 100% there yet, there are things that Muckler particularly likes, such as the ‘is investing really for you’ sanity check, the ‘quiz’ to ensure that you have selected the right risk profile and the determination to improve financial literacy and engage users in the investing process by improving their understanding.
Moola’s fees appear realistic and are nothing if not transparent – 0.75% p.a. of the value of any portfolio, with 0.19% – 0.25% management charge applied by the underlying ETFs; there are no other charges.
With its high profile founder, Moola’s entrance to the market has been eagerly awaited and it will be interesting to see if this is the spark that ignites mass-market interest in the rapidly developing robo-advice sector; if so that sits very comfortably with Muckle’s mission to engage the next generation of investors.
