Financial services firm Moneygate Group will launch a dedicated discretionary fund management business following the acquisition of Somerset-based DFM Watermark Financial Solutions for an undisclosed sum.
Due to rollout later this year, the DFM service will be rebranded as Marketstar and will provide ongoing services to Moneygate’s national network of IFAs.
Marketstar clients will be able to access a full DFM service and a range of model portfolios designed, run and managed by a dedicated management team with investment committee oversight.
Meanwhile, Watermark Wealth Management, the IFA side of the acquired business, will now provide client facing advisory services within the regulator structure of Moneygate.
Founded in 1990, Watermark brings with it five advisers, a turnover of £1m and funds under management of more than £50m.
Watermark chief executive Mark Woods will lead the Marketstar team from launch following FSA approval.
Mr Woods said: “It became apparent that so called cautious or balanced funds did not do what they said on the tin with significant falls in investment levels post crash.
“By adopting asset allocation modelling and careful discretionary fund management we have been able to insulate our clients from various market crashes over the last 15 years particularly during 08/09. Our clients trust our stewardship of their money and are very happy with what we have been doing for them.”
