Here’s Why M&G (MNG) Shares Barely Moved Despite Acquiring TCF Investment

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Simon Mugo
Updated: 17 Feb 2022

Key points:

  • M&G shares barely moved after acquiring TCF Investment.
  • The firm will incorporate TCF’s model portfolios into its services.
  • MNG shares are trading near a critical resistance zone.

The M&G PLC (LON: MNG) share price barely moved after announcing that it had completed the acquisition of TCF Investment and would not incorporate the investment firm’s services into its product portfolio.

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Investors seemed unbothered by the announcement as MNG shares kept trading sideways, posting slight losses for the day. A cursory look at the company’s daily price chart indicates that MNG shares are trading below a critical resistance level, which explains the lack of movement.

It usually takes quite a decisive move to break above such a level, given that it has survived three previous attempts to break above it in 2022.

Also, Read Best Financial Stocks to Buy Right Now.

MNG shares have risen 7.62% in 2022, which is an impressive feat for the investment fund., but have been unable to break above the 218p resistance level.

The TCF acquisition brings a host of new services to M&G since TCF’s speciality was providing model portfolios for investors. In addition, TCF had a single service known as MAPS, which was tailored to meet customers’ needs with different risk profiles.

The investment firm had a collection of multi-asset model portfolios, which will continue to be offered to clients with M&G planning to launch other model portfolios to complement the existing portfolios.

M&G Wealth will take charge of TCF’s portfolio of products with TFC Investments’ founders Gary Mairs and David Norman leaving the business later in the year as M&G Wealth’s Chief Investment Officer, Shanti Kelemen, taking over.

 

Shanti Kelemen, M&G Wealth’s Chief Investment Officer, said: “TCF Investment has an excellent long-term performance track record and a scalable platform for the management of model portfolios. This complements M&G plc’s existing investment capability and accelerates our ability to offer model portfolios.”

Adding:

“It will allow us to bring new services to market, through all our distribution channels quickly. We will also introduce new model portfolios to supplement MAPS later this year, with a focus on investing globally and incorporating environmental, social and governance factors in the investment process.”

David Norman, TCF Investments’ Chief Executive, said: “In the 13 years since launch, TCF Investment has built a well-respected and fast-growing model portfolio business with an enviable performance track record.  Combining this with M&G plc’s financial strength, wider investment capability and distribution reach will provide the perfect opportunity to create a market-leading proposition for consumers and intermediaries.”

M&G shares look attractive at current prices. However, I would wait for a break above the 218p level before buying. Then, I would buy on a retest of the level, with my first target at the 240p level.

*This is not investment advice. Always do your due diligence before making investment decisions.

MNG share price.

IG chart of M&G share price 17-02-2022
Source: IG

M&G share price barely moved as investors ignored the acquisition of TCF Investment.

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