Investment platform Ascentric has been sold by Royal London to fund provider M&G.
Ascentric is one of the wrap platforms we recommend to our clients, as a place to hold and manage investment assets within different tax wrappers.
The deal means M&G will bring around £14 billion of investment assets under its administration, subject to regulatory approval.
Ascentric works with around 1,500 advisers and 90,000 of their advised clients.
We’ve known for some months that Ascentric has in talks to an unknown buyer, but it has been a case of business as usual for the platform.
Buying Ascentric is a new direction for M&G, but seems to us to be a sensible acquisition, giving them access to the growing UK platform market.
Ascentric appears to us to be a better strategic fit for M&G than it was for insurer Royal London, and the acquisition should mean it can more easily access capital for future service developments.
Last year, Ascentric undertook a comprehensive ‘re-platforming’ project, moving to a new software platform as part of their longer-term strategic review.
Any change brings teething problems, and it’s fair to say the Ascentric re-platforming project could have been smoother (!), but this hard work last year puts Ascentric in a strong position to cope with this acquisition.
Announcing the deal, M&G chief executive John Foley explained that the acquisition strengthened their position in the UK savings and investment market, complementing their existing offering to advisers and customers. He said:
“Asentric’s platform will also accelerate our ability to provide a wider range of M&G and Prudential investment solutions to more customers, through the tax wrappers and service propositions they favour. Advisers will also benefit as we invest to grow the platform.”
For any Informed Choice clients with assets held on the Ascentric platform, do speak to your Financial Planner with any questions or concerns during the acquisition process.