UK wealth manager M&G has entered the model portfolio services segment through the acquisition of investment management firm TCF Investment.
Financial terms of the deal were not disclosed.
Go deeper with GlobalData
M&G said that the acquired entity will be part of its wealth division and rebranded in due course.
M&G Wealth will be responsible for the management of TCF’s MAPS offering that is designed to cater to a spectrum of customer risk appetites and profiles through a collection of multi-asset model portfolios.
The company also plans to add a new range of portfolios to MAPS in the coming months.
This offering will remain available on other wealth platforms with current adviser models supported and offered to new firms.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataM&G Wealth also plans to bring down the current standard TCF fees to 0.15% per annum from current levels of 0.35% or 0.25% per annum, based on the portfolio.
As part of the agreement, TCF joint founders David Norman and Gary Mairs will exit the business, which will now be led by M&G Wealth CIO Shanti Kelemen.
Kelemen said: “TCF Investment has an excellent long-term performance track record and a scalable platform for the management of model portfolios. This complements M&G plc’s existing investment capability and accelerates our ability to offer model portfolios.
“It will allow us to bring new services to market, through all our distribution channels quickly.
“We will also introduce new model portfolios to supplement MAPS later this year, with a focus on investing globally and incorporating environmental, social and governance factors in the investment process.”
Commenting on the deal, Norman said: “Combining this with M&G’s financial strength, wider investment capability and distribution reach, it will provide the perfect opportunity to create a market-leading proposition for consumers and intermediaries.
“In the short-term it’s very much business as usual, but exciting developments are ahead for the business.”
Last month, M&G obtained a minority stake in robo-adviser Moneyfarm under a strategic alliance to offer investment services to its UK customers.
