AJ Bell has acquired a London-based investment management business in order to launch its own range of funds.
The firm AJ Bell purchased is made of two parts, the first of which include Indexx Markets Limited, which designs investment products, and its subsidiary, Allium Capital, which operates an existing range of multi-asset funds, named the FP Allium DRP funds.
The second part of the firm is investment management services firm Mansard Capital, which runs the Allium funds.
A spokesman from AJ Bell said the deal, which is subject to FCA approval, was made through the firm’s cash reserves but couldn’t give further details on the price paid.
AJ Bell said in a statement: “The acquisition adds investment management services to our business, which gives us discretionary permissions as well as the ability to launch our own funds and build new investment solutions for financial advisers.”
AJ Bell head of investments Alex Dymock will run the new business and report into chief executive Andy Bell.
The firm said: “Through this vertical integration we will be able to increase the value we deliver to financial advisers. We will work with financial advisers to build solutions they need to service their client’s needs.”
The firm recently said it was launching a model portfolio early in 2016 but said it had no plans of getting into full active management as it is not its expertise.
The new purchase means the firm will offer a “low cost” range of passive funds and a model portfolio service based around passive funds. The firm couldn’t yet provide details of how much the service will cost.
The Allium multi-asset funds will also be available on the AJ Bell platform and there are no plans to rebrand them, the firm said.