M&G plc has announced the acquisition of investment manager TCF Investment (TCF) to become a provider of model portfolio services. The deal has been approved by the FCA.
TCF will be rebranded under M&G Wealth.
TCF’s current service – MAPS – is tailored to meet a range of customer risk appetites and profiles through a collection of multi-asset model portfolios. M&G Wealth will take responsibility for the ongoing management of MAPS and will also launch a new range of portfolios in the coming months.
MAPS will continue to be available on other wealth platforms with existing bespoke adviser models supported and offered to new firms.
M&G Wealth also intends to reduce the current standard TCF fees to 0.15% pa from current levels of 0.35% pa or 0.25% pa, depending on the choice of portfolio.
The joint founders of TCF, David Norman and Gary Mairs, will leave the business later in the year as Shanti Kelemen, Chief Investment Officer of M&G Wealth, takes responsibility for the business.
Shanti Kelemen, Chief Investment Officer, M&G Wealth, 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.
“TCF Investment has a well-earned reputation and a talented group of Partners and staff”.
David Norman, Chief Executive of TCF Investment, said: “In the 13 years since launch, TCF Investment has built a well-respected and fast-growing model portfolio business with an enviable performance track record.
“Combining this with M&G plc’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.
“We are very proud of what we have achieved to date and thank all the advisers for their continued support”.
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