Asset deal

M&G buys wrap platform Ascentric from Royal London

John Foley

John Foley: ‘deal strengthens our position’ (pic: Terry Murden)

M&G has acquired digital wrap and wealth management platform Ascentric from Royal London.

The acquisition will bring £14 billion of assets under administration to M&G, as well as relationships with more than 1,500 advisory firms acting on behalf of over 90,000 individual customers.

John Foley, Chief Executive of M&G, says: “This deal strengthens our position in the UK savings and investment market, complementing our existing offering to advisers and customers with a well-established digital wealth management platform.

“Ascentric’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.”

The acquisition brings to M&G a capability to offer third-party discretionary fund management services, as well as Individual Savings Account (ISA), Self-Invested Personal Pension (SIPP)  and General Investment Account (GIA) wrappers on a single platform.

The agreement follows a comprehensive strategic review led by Royal London’s chief executive, Barry O’Dwyer.

Barry O'Dwyer

Barry O’Dwyer: ‘we explored a number of options’

Ascentric has been part of Royal London since 2007. It became a wholly owned subsidiary in 2014.

Commenting on the sale, Mr O’Dwyer, said: “As part of our strategic review of the business, we explored a number of options for Ascentric. 

“The business has been performing well following its re-platforming and we sought an outcome that would take it to its next phase of growth. 

“We believe that a sale to M&G delivers this for Ascentric and I am pleased to have found a buyer who has a strong commitment to Ascentric’s client and customer base and who is looking to further grow the business. 

“I would like to thank the Ascentric team for their contribution to building a valuable business over the past years.

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