International savings and investment giant M&G has acquired discretionary fund management business TCF Investment for an undisclosed sum.
The deal will allow M&G to become a provider of model portfolio services. TCF will become part of M&G Wealth and will be rebranded in due course.
The DFM firm’s current service, called Maps, offers a collection of multi-asset portfolios based on client risk appetite and profile.
Maps will still be available on other wealth platforms after the acquisition, M&G said.
M&G plans to make some changes to TCF’s fee model. It intends to reduce current standard fees to 0.15% per annum from the current 0.35% and 0.25% pa, depending on the portfolio.
Additionally, TCF co-founders David Norman and Gary Mairs will leave the business later in the year, while M&G Wealth chief investment officer Shanti Kelemen will take over responsibility for the DFM company.
MPS expansion
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.”
Norman added: “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”.
