Momentum UK acquires L&C’s DFM business

Momentum UK, a subsidiary of South African insurance company MMI Holdings, has acquired the discretionary fund management (DFM) business of London & Capital, as it looks to continue to grow its presence in the UK retail market.

The purchase price and other terms of the deal weren’t given.

Adviser Solutions, which currently carries the London & Capital brand, will now sit within Momentum’s Global Investment Management division, according to a statement issued today by both companies.

Following the sale, London & Capital will cease to service independent financial advisers, focusing solely on private and institutional clients.

London & Capital chief operating officer Guy McGlashan said the Adviser Solutions team will remain unchanged, “thus minimising disruption” to its IFA clients. He said the firm had chose Momentum as the buyer because of “shared ideals and investment philosophy”.

Ferdi van Heerden, Momentum UK chief executive, said of the deal: “With the addition of a mature DFM solution to complement our unitised Factor Series fund range, we now have a proposition that can cater for a wide range of IFA’s customer needs.”

Momentum will take immediate responsibility for the management of Adviser Solutions’ 15 model portfolios under a sub-investment management agreement. It will assume full control of Adviser Solutions on 1 July.

Momentum Global Investment Management’s head of UK business development Andy Davies (pictured) said the firm would spend “the next few weeks” talking to the IFAs who use Adviser Solutions.

Momentum services clients in the UK, Far and Middle East and South Africa, with assets under management of £3.8bn. As of June 2015, London & Capital had assets under management of US$ 3.6bn (£2.5bn), of which £200m is managed by the Adviser Solutions business.

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