It’s too early to tell definitively, but the strong indications are that the digital economy is robust and leading the way forward for business in the UK. Money&Co., for example, has been operating smoothly under lockdown – and, as we see today in the following report from our friends at AltFi, deals are being done. The Aviva acquisition is part of the enthusiasm generally displayed by the mainstream for the alternative finance sector.
Cardiff-based ‘robo adviser Wealthify has been fully acquired by financial services giant Aviva.
In 2018 Wealthify became majority-owned by Aviva but following a new transaction – from an option for the founders to sell their remaining shares to Aviva – has brought it fully under the control of the multinational listed insurance firm.
Wealthify says it has grown significantly since its launch in 2016, expanding its original offering of Stocks and Shares ISAs and General Investment Accounts to now include Ethical Investments, Junior Stocks and Shares ISAs, and more recently Self-Invested Personal Pensions (SIPPs).
The Cardiff based firm has 40 staff and manages the investments of 30,000 customers.
Co-founder and CEO, Dr Richard Theo, will leave the business. Richard Avery-Wright will stand down as chairman and member of the Investment Committee
Andrew Russell has been appointed as its new CEO. Andrew has worked for Aviva for eleven years and has over 20 years’ experience in financial services.
Historical Performance And IFISA Process Guide
That figure is the result of over £21 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2019/20 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.