(Alliance News) - Tatton Asset Management PLC on Thursday announced a GBP2.7 million acquisition as trading continues to go well.
Tatton is buying Sinfonia Asset Management Ltd from Tenet Group. It is paying GBP2.0 million up front, with the rest due in two instalments based on assets under management targets over two years.
Sinfonia has AUM of GBP135 million, Tatton said, and the company believes Sinfonia will be a "good strategic" fit.
In June, Tatton was selected by Tenet to provide managed portfolio services for three years.
Paul Hogarth, Tatton's founder & chief executive, said: "Following the strategic partnership agreement with the Tenet Group which we announced in June of this year, we are delighted to have acquired the Sinfonia range of funds from Tenet.
"The acquisition of these funds continues to strengthen our relationship with Tenet and complements our current portfolio range of investments which both broadens our proposition to the wider investment community and contributed to the group reaching the GBP7 billion AUM milestone."
On the trading front, Tatton said it performed well during the six months to September, with the investment management business growing "strongly".
AUM reached GBP7.0 billion at the end of September, including Sinfonia, a 15% rise over the half with 13% of that organic. Net inflows were GBP441 million.
Tatton's mortgage distribution and support services firm Paradigm Mortgage Services did well, increasing new members by 5.3%, despite "general headwinds" in the UK mortgage market.
CEO Hogarth added: "While it's clear the current political and economic environment remains uncertain, we have delivered a good first half to our financial year and have completed our first acquisition.
"We are very pleased with both the start and progress we are making with Tenet IFAs following the signing of the strategic partnership agreement in June this year and also to have reached the AUM milestone of GBP7 billion. As we look forward, we will continue to take advantage of the opportunities that exist in our markets and remain confident about the future progress of the group."
Shares were 3.1% higher in early trade on Thursday in London at 216.53 pence each. Tatton will report interim results on November 11.
By George Collard; georgecollard@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
Tatton Asset Management (TAM)