Lighthouse Group enters strategic relationship with Tavistock Investments
By Josh White
Date: Wednesday 14 Nov 2018
(Sharecast News) - Financial advisory provider Lighthouse Group has entered into a strategic relationship with Tavistock Investments, it announced on Wednesday.
The AIM-traded firm said it currently advised clients with assets in excess of £5bn, and on new investment and pension flows of circa £1bn per annum.
It said the strategic agreement would enable Lighthouse and its advisers and clients to access Tavistock's investment solutions, including its capital protection fund products that were principally invested in iShares by BlackRock, and guaranteed by Morgan Stanley, all managed to the client's agreed risk profile.
Tavistock also had an existing model portfolio service and risk-progressive Acumen fund range, again managed to the client's agreed risk profile.
Lighthouse said those funds would be available as part of, and would augment, its existing Luceo Asset Management range of investment solutions which were launched in 2016, and would help to bring the Luceo funds to scale and accelerate its strategy of expanding its fund range.
Both groups expected additional opportunities to emerge in due course as the two parties worked together more closely to formalise the strategic agreement, the Lighthouse board explained.
In its recent interim financial statements for the six months ended 30 September, Tavistock reported £941m assets under management through its own fund range - an increase of £196m or 26% since September 2017 and £617m or 190% since September 2016.
It also reported an increase in ongoing business revenues of 13% to £14m and an increase of 276% in EBITDA to £0.52m.
In its annual financial statements for the year ended 31 March, Tavistock reported an increase in assets under management of 44% to £866m, an increase in ongoing business revenues of 47% to £28.8m and an increase of 91% in underlying EBITDA, after reorganisation costs, to £0.73m.
It also reported profit before tax for the year of £0.22m.
"Lighthouse is a successful financial advisory business with particular expertise in providing advice to members of its affinity group partners whose aggregate membership is in excess of six million individuals," said Lighthouse chief executive officer Malcolm Streatfield.
"The group signalled its intention to provide effective, risk-managed investment solutions to its customers by launching the Luceo Asset Management Range in October 2016 and is continually looking to extend its range of investment solutions, for the benefit of the group, its customers and shareholders."
Streatfield said Tavistock had demonstrated its ability to establish an investment management business of scale, adding he was "delighted" that Lighthouse would be working with it to develop additional high quality investment solutions for the benefit of its mutual client bases.
"I believe that this will be the start of a successful working relationship between Lighthouse and Tavistock."
Brian Raven, Tavistock's chief executive, added that the establishment of a strategic relationship between the two firm was a "significant development" for both groups.
"Lighthouse is one of the leading financial advisory businesses in the UK with circa 400 advisers and as the preferred supplier of financial advice to 21 affinity group partners and their aggregate membership of more than six million individuals," Raven said.
"Its selection of Tavistock as its partner to develop further its Luceo Asset Management range of investment solutions, tailored to match and continue to match the client's agreed risk profile, is a strong endorsement of our expertise in this field.
"We look forward to achieving considerable success together in the coming years."
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