M&G PLC (LSE:MNG) said it acquired investment manager TCF Investment to become a provider of model portfolio services.
Under the deal, which has been given the go-ahead by the Financial Conduct Authority (FCA), TCF will become part of M&G Wealth and be rebranded in due course, M&G said in a statement.
M&G Wealth will take over the management of TCF’s MAPS product, a service that is tailored to meet a range of customer risk profiles through a collection of multi-asset model portfolios.
In addition, M&G Wealth will launch a new range of portfolios in the coming months and also plans to reduce TCF’s fees to 0.15% per year from the current 0.25% or 0.35%, depending on portfolio.
MAPS will continue to be available on other wealth platforms with existing bespoke adviser models supported and offered to new firms.
TCF founders David Norman and Gary Mairs will leave the company later this year and Shanti Kelemen, chief investment officer of M&G Wealth, will take over responsibility for the business.
"TCF Investment has an excellent long-term performance track record and a scalable platform for the management of model portfolios. This complements M&G's existing investment capability and accelerates our ability to offer model portfolios,” Kelemen commented.
"It will allow us to bring new services to market, through all our distribution channels quickly.“
TCF CEO David Norman said combining TCF with M&G's financial strength, wider investment capability and distribution reach “will provide the perfect opportunity to create a market-leading proposition for consumers and intermediaries”.