The Aviva-owned robo-adviser Wealthify has signed a partnership deal with wealth manager LGT Vestra to offer lower wealth clients a low-fee digital investment option.

Wealthify says the deal will mean LGT Vestra can offer a low-fee investment “alternative” to clients whose wealth is not sufficient for standard advice fees.  

These clients will be directed to Wealthify’s digital platform via a co-branded user option.

Wealthify says the new service means advisers can reach a “whole new segment of clients.”

The new service is a “non-advised, discretionary investment solution” and will offer a model portfolio run by investment specialists at LGT Vestra. 

Customers will be get a choice of five risk profiles which invest in a range of either passive mutual funds or active ethical funds. 

Both the asset allocation and fund selection will be carried out by LGT Vestra, with the platform and customer care provided by Wealthify.

The management fee for the new service is the same as for direct Wealthify clients at 0.60%. The fund charges on standard funds are an average of 0.15% with the ethical average 0.75%.

Simon Holland, chief product officer at Wealthify, said: “From the outset, LGT Vestra recognised the challenges faced by advisers in terms of how to service smaller clients, and how to engage with the next generation. Together, we’ve built the perfect solution, mapping exclusively to their models, with our proven technology and customer-centric focus at its heart.”

Tony Allan, partner and head of business development at LGT Vestra, said: "We are excited to partner with Wealthify to provide advisers with an investment solution for next generation clients. Sharing our investment expertise via the Wealthify app will allow advisers to retain future clients who they may otherwise not have been able to service."

Wealthify was launched in April 2016 and acquired by Aviva in 2017. The service is available online or via an app. Wealthify is an independently run subsidiary of Aviva.

LGT Vestra LLP is a UK-based wealth management partnership which offers investment management, wealth planning and private office services. It employs nearly 400 staff at offices in London, Bristol and Jersey. It is part of private bank LGT, which is based in Liechtenstein. LGT manages £219bn in funds for wealthy private individuals and institutional clients.