Heartwood Investment Management has written to advisers this afternoon to tell them it is pulling out of the intermediated market to focus on private clients, family offices, charities and corporate customers.
The UK wealth manager’s professional intermediaries distribution channel will close in June 2021, according to a letter seen by our sister publication Portfolio Adviser.
Heartwood is currently transitioning its brand to become Handelsbanken Wealth & Asset Management to better align with its Swedish parent.
“While the IFA channel represents a commercial opportunity, it is one that is outside of Handelsbanken’s target customer group and an area that in recent years has become highly competitive,” said Heartwood head of professional intermediaries Haydn Aird in the letter.
“We have therefore concluded that to expand our presence within the IFA sector would require significant investment in new product and distribution capabilities.”
Changes
Heartwood said advised clients in its multi-asset funds would be able to remain invested but that they may lose access to up-to-date information as the wealth manager ceases its arrangements with third-party platforms.
“There are no changes being made to the investment products, or to the management or staffing of the investment team,” Aird said.
The decision to exit the intermediated market was made jointly by Heartwood and its parent Handelsbanken. The wealth manager was founded in 1998 and was acquired by the Swedish bank in 2013.
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