There are several overlaps between the two companies at present, including favoured funds Lindsell Train UK Equity, Troy Trojan, Jupiter European, M&G Optimal Income and Fundsmith Equity.
The combined firms will also eventually bring their two ranges of risk-rated funds (each range also including an income offering) into one, avoiding duplication although both parties seem keen for “natural progression” rather than rushing to integrate the propositions.
Minimal disturbance
In a bid to ensure minimal disturbance for existing clients, Thurleigh will remain a legal entity and its clients will continue to be serviced by their current contacts. There is no immediate plan to change either side’s branding but from the end of the month, all new clients will be clients of IAM and in due course Thurleigh staff will move into the IAM offices in central London.
IAM has £1.5bn under management, £125m of which is held in model portfolio solutions across eight platforms, while Thurleigh runs £300m, £15m of which is held across two platforms.
In terms of shared benefit, IAM was impressed by Thurleigh’s access to more boutique fund managers and its use of ETFs, as well as Pulse, its risk assessment software, of which CEO Guy Bowles said he was looking forward to taking full advantage.
Chairman David Rosier said he was impressed with Bowles, having taken the business to £1.5bn of AUM in a decade, which was “no mean feat” especially against a backdrop that included the financial crisis.
Deeper talent pool
He added the significant increase in the number of investment professionals – adding Thurleigh’s four to IAM’s existing 12 – would generate more ideas and build on the “robust risk management process” that IAM had in place.
There was little risk of client bank cannibalisation, Rosier explained, with Thurleigh’s bias towards the private client end via professional connections and IAM’s through working more in partnership with financial advisers and offering them outsourced investment management, a by-product of the RDR.
In keeping with flourishing M&A activity in the wealth management sector at the moment, Bowles added that further acqusitions were not off the table, but for now the priority would be to oversee a successful integration of Thurleigh and ensure continuity for both sets of clients.
