On 11 August Aegon announced that they had agreed to purchase the Cofunds administration platform from Legal & General in a £140 million deal. The news was not unexpected and we have been aware of the general discussions taking place over the last few years as a result of our close relationship with Cofunds’ senior management team. We had spoken to senior members of Aegon and Cofunds management teams ahead of today’s announcement.
Aegon have committed to investing in and expanding the combined platform, with further details expected to be announced once the regulator it has given its approval to the deal, hopefully by the end of the year.
We have used the Cofunds platform for over a decade. During this period it has become the UK’s largest administration platform for ISAs, unit trusts and similar investments with around £77 billion of assets under administration. It is also been one of very few profitable platforms in an area which has seen a number of high profile failures. Over recent years it has become clear that significant investment would be required to upgrade the platform to provide access to a greater range of investments. We welcome Aegon’s commitment to invest and consolidate the platform to offer greater functionality and efficiency.
We will continue to monitor events closely, but for the time being we are not recommending any changes to your existing holdings. Over the years we have negotiated enhanced terms for our clients which make the existing platform extremely cost effective and we will continue to review the Aegon/Cofunds platform and other alternative platforms on a regular basis to ensure that they continue to meet our clients’ needs.
It is likely that you will see a number of articles about the acquisition over the next few weeks but it may be several months before you receive formal notification from the companies as the final details will be subject to regulatory approval.
If you have any questions in the meantime please do not hesitate to contact us.