M&GFeb 17 2022

M&G enters MPS market with acquisition

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M&G enters MPS market with acquisition
Shanti Kelemen, chief investment officer, M&G Wealth

M&G has moved into the model portfolio service provider space with the acquisition of an investment management firm.

In a statement to the stock exchange this morning (February 17), the group announced its takeover of TCF Investment, which will become part of M&G Wealth and will be rebranded in due course.

TCF’s current MPS offering, called MAPS, will be absorbed into M&G Wealth which will take responsibility for the ongoing management.

The MPS will continue to be available on other wealth platforms with the existing bespoke adviser models still offered to new firms.

A new range of portfolios will be launched in the coming months.

M&G Wealth will drop MAPS’ fees to 0.15 per cent per annum. They currently sit between 0.25 per cent and 0.35 per cent, depending on the portfolio.

David Norman and Gary Mairs, the joint founders of TCF, will leave the business later in the year.

Shanti Kelemen, chief investment officer at M&G Wealth, said TCF has an “excellent” long-term track record and a “scalable platform” for the management of model portfolios.

She added: “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 has built a well-respected and fast-growing MPS business. 

“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,” he said.

“We are very proud of what we have achieved to date and thank all the advisers for their continued support”.  

Kelemen, who will take responsibility for the MPS business, was hired as M&G Wealth's first chief investment officer at the end of last year. She joined from Brown Shipley where she was an investment director.

M&G's expansion

The acquisition comes at a time of expansion for M&G.

M&G Wealth was launched in September 2020 and earlier this year completed the acquisition of Sandringham Partners, an independent financial adviser.

Late last year, the firm launched a hybrid advice business, aimed initially at its existing customer base, and last month announced a partnership with digital investment specialist Moneyfarm, to provide direct investment services to UK consumers.