Vertically integrated advice and investment business Tavistock has said it has begun working with advisers at national IFA Lighthouse on the distribution of some of its products.
Tavistock -which offers a discretionary management service, compliance support, and private client financial advice – announced in December it would work with Lighthouse to distribute its new capital protection products to clients of Lighhouse through its adviser base, under Lighthouse’s own investment arm, Luceo Asset Management.
In a stock exchange update this morning, Tavistock says that “the process of engaging with Lighthouse’s 400 advisers has now begun and prospects are most encouraging”.
Tavistock, which acquired collapsed network Financial Limited in 2015 before building a new network in its place and selling that to Sanlam in 2017, confirmed to Money Marketing last year that 90 per cent of its flows still come from in-house advisers.
In the stock exchange announcement this morning, Tavistock notes that it has managed to grow funds under management despite tough economic conditions, but is likely to come in below forecasts in terms of results.
The update reads: “During the current financial year, headwinds, in the form of Brexit uncertainties, difficult global financial market conditions and investor anxiety, have slowed the pace at which the company has been able to grow funds under discretionary management and hence profitability. Unlike many competitors, FUM is increasing year on year and earnings are expected to grow significantly, just not to the level management had hoped.
“Whilst the company’s results for the current year will be lower than previously anticipated, they will still demonstrate meaningful growth and management retain their stated ambition to pay a maiden dividend.”