Investments  

Mattioli Woods reveals plan behind wealth manager buy

Mattioli Woods reveals plan behind wealth manager buy

Mattioli Woods’ decision to acquire stake in wealth manager Amati is part of the company’s efforts effort to improve its access to UK smaller companies, regardless of Brexit.

The 49 per cent acquisition of the specialist wealth manager by Mattioli Woods, announced today (7 February) will provide clients with access to Amati funds, which tend to focus on the small-cap end of the UK market.

The move will also provide Amati with economies of scale under the larger umbrella of Mattioli Woods without compromising the existing investment strategy of the funds.

Article continues after advert

Simon Gibson, chief investment officer at Mattioli Woods, said that the acquisition is part of the firm’s larger objective of providing their clients with better access to UK smaller companies.

“Almost regardless of Amati we are increasingly interested in what smaller companies can provide for our smaller wealth management clients as part of asset allocation, as part of investment, as part of planning, estate planning, all of the things that we’re are delivering.

“We are excited generally about smaller business and their ability to be agile but also backing up the huge conviction we have. And if we have conviction in something we press on.”

Mr Gibson recognised concerns that the UK’s exit from the EU could put further pressure on UK businesses after smaller companies underperformed their larger UK competitors last year, as FTSE 100 listed companies enjoyed tailwinds from overseas business and a weak sterling.

“But actually there’s an argument that says if the UK economy continues to be sound, and it’s perhaps looking more sound than many people thought on the 24 June, bearing in mind that some things haven’t happened yet.

“But even taking that into account I’m not so sure we should be quite so bothered that smaller companies in the UK and UK-centric businesses are going to fall off a cliff.”

Ian Mattioli, chief executive of Mattioli Woods, said that the partnership will open up new sales channels for Amati funds, and added that the group could look for opportunities to expand the range in the future.

“It will give them better exposure, broader distribution. Mattioli Woods is a strong brand now, something we’ve developed over 25 years. The Amati brand is as strong but what it hasn’t had is the penetration it maybe should,” Mr Mattioli said.

He added that the company will look to expand its business both through natural growth and further purchases going forward.

“Yes to organic growth, and yes to acquisition growth.”