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M&G acquires TCF Investment and will cut fees

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17/02/2022
M&G plc has acquired discretionary fund manager TCF Investment and says it will cut fees later this year.

In a deal approved by regulator, the Financial Conduct Authority (FCA), TCF will become part of M&G Wealth to provide model portfolio services.

TCF launched in 2009 and has AUM of circa £250m. Sums associated with the deal have not been disclosed but is not a “material cost” to M&G.

Its current MAPS service offers multi-asset model portfolios but once the deal goes through later this month, M&G Wealth will take over the management of MAPS. It will still be offered on other wealth platforms.

M&G will also launch a new range of portfolios in the coming months and added it intends to reduce the current standard TCF fees to 0.15% pa from current levels of 0.35% pa or 0.25% pa later this year, depending on the choice of portfolio.

The joint founders of TCF, David Norman and Gary Mairs, will leave later in the year as Shanti Kelemen, chief investment officer of M&G Wealth, takes responsibility for the business.

Shanti Kelemen, CIO, 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.”

As at 30 June 2021, M&G plc had AUM of £370bn with five million retail customers.

At the start of 2022, M&G plc also completed the acquisition of Sandringham Partners – an independent financial adviser. Sandringham is the independent advice arm of M&G Wealth.

It also announced a partnership agreement with investment specialist Moneyfarm last month, to provide direct investment services to UK consumers.

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