Lighthouse Group plc (LON: LGT), the national financial advisory group, has today announced that it has entered into a strategic relationship with Tavistock Investments plc (LON: TAVI).
Lighthouse currently advises clients with assets in excess of £5 billion and on new investment and pension flows of circa £1 billion p.a. The Strategic Agreement will enable Lighthouse and its advisers and clients to access Tavistock’s investment solutions, including its capital protection fund products that are principally invested in iShares by BlackRock and guaranteed by Morgan Stanley, all managed to the client’s agreed risk profile. Tavistock also has an existing model portfolio service and risk-progressive Acumen fund range, again managed to the client’s agreed risk profile. These funds will be available as part of, and will augment, the Group’ existing Luceo Asset Management range of investment solutions which were launched in 2016, and will help to bring the Luceo funds to scale and accelerate Lighthouse’s strategy of expanding its fund range. Both groups expect additional opportunities to emerge in due course as the two parties work together more closely to formalise the Strategic Agreement.
Tavistock Investments plc is a financial advisory and fund management business. In its recent interim financial statements for the six months ended 30 September 2018 Tavistock reported £941 million assets under management through its own fund range, an increase of £196 million or 26 per cent. since September 2017 and £617 million or 190 per cent. since September 2016. It also reported an increase in on-going business revenues of 13 per cent. to £14.0 million and an increase of 276 per cent. in EBITDA to £516,000. In its annual financial statements for the year ended 31 March 2018, Tavistock reported an increase in assets under management of 44 per cent. to £866 million, an increase in on-going business revenues of 47 per cent. to £28.8 million and an increase of 91 per cent. in underlying EBITDA (after reorganisation costs) to £734,000. It also reported profit before tax for the year of £221,000.
Malcolm Streatfield, Chief Executive Officer of Lighthouse Group plc commented: “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 6 million individuals. 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.
Tavistock has demonstrated its ability to establish an investment management business of scale and I am delighted that we will be working together to develop additional high quality investment solutions for the benefit of our 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, commented: “The establishment of a strategic relationship between Lighthouse and Tavistock is 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 6 million individuals. 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.”