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Tatton to reduce OCF on Verbatim Growth Funds

Tatton to reduce OCF on Verbatim Growth Funds
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Tatton Investment Management will seek to reduce the overall charges on the Verbatim Portfolio Growth funds it acquired last year.

Following the acquisition of Verbatim Asset Management in September 2021 by Tatton, the five risk-rated funds, which have £346mn in assets under management between them, will now be marketed as growth funds alongside Tatton’s existing £295mn Blended Fund range.

Lothar Mentel, chief executive and chief investment officer at Tatton Investment Management, expressed commitment to serving advisers and their clients in the fund ranges but said nothing would change about the process, except perhaps the OCF.

He confirmed Tatton was not changing the naming of the funds at this time but it will look to reduce the overall cost of the funds for investors.

Mentel said: “We will not change the investment objectives of the funds or their risk mappings, however, we will look to drive down their OCFs since managing the cost of investing is a vital component of creating net growth for investors.

"The strategic asset allocation adds an alternative weighting to our existing funds, which provides a pure growth multi-asset fund range to sit alongside the Tatton Blended funds.”

Tatton Investment Management Limited was launched in 2013 and its UK managed portfolio service DFM manages more than £11.2bn of assets (as at November 2021).

Mentel added: “We are committed to enhancing the investment performance, service levels and client communications for the funds under our stewardship.

"Tatton is committed to supporting financial advisers and many advisers are attracted to risk rated multi-asset funds for their clients. These new mandates are an integral part of building our fund business and our investment team are perfectly suited to managing them.”

At the time of acquisition, Tatton had set a roadmap for growth at the end of 2020, which included increasing its assets under management from £9bn to £15bn over the next three years.

As reported at the time by FTAdviser, for the first six months of this plan, the firm’s AUM reached £10.8bn.

At the time, Tatton said: “The IFA remains at the heart of our business, and our breadth of services, propositions and engagement ensures we maintain existing client relationships while enhancing our ability to attract new firms. 

“Accordingly, as we look forward, we are confident we will continue to make progress and take advantage of the opportunities ahead.”

simoney.kyriakou@ft.com