Charles Stanley, a UK stockbroker and wealth management firm, is set to acquire asset allocation advisor, Evercore Pan Asset Capital Management for an undisclosed sum, writes Caroline Ng.

The deal, conditional upon Financial Conduct Authority approval, aims to boost its passive investment offering to financial advisers and achieve cost savings.

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‘The acquisition of Pan Asset will complement the company’s existing distribution channels by broadening Charles Stanley’s expertise and product offering into the area of passives and in particular we foresee opportunities to enhance our increasing to the financial adviser market place,’ said Mike Lilwall, director of Charles Stanley.

The transaction will be completed with initial cash considerations and further payments over the next 12-18 months depending on Pan Asset’s performance.

Pan Asset which specializes in pension funds, charities, universities and family wealth had £593m worth of assets under management at the end of October.

However, Charles Stanley said the firm had struggled to be profitable, having operated at break even since being launched in 2007.
The takeover is expected to make Pan Asset immediately profitable by combining their sales and distribution network.

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John Redwood, chairman of the group’s investment committee and Christopher Aldous, chief executive will join the wealth manager following the takeover.

Charles Stanley’s shares are currently up by 6.6 per cent (12pm) driven by strong trading statement released today where pre-tax profit rose by 44 per cent to £4.9m.