Aegon’s commitment to including investment companies in Cofunds following the acquisition of the platform is an important step in mainstreaming the investment vehicle for the advice community, says the AIC.
Aegon confirmed its purchase of Cofunds for £140m in its results announcement this morning. The deal means Aegon will be the biggest platform provider in the UK.
As part of the announcement, Aegon confirmed Cofunds would offer investment trusts, ETFs, and all FTSE 350 stocks following the acquisition.
“It’s an important step towards investment companies becoming mainstream investments for financial advisers,” says AIC spokesperson Annabel Brodie-Smith. “It a big change from a couple of years ago.”
Brodie-Smith points out that FundsNetwork was the “trailblazer” introducing investment companies in November, while Old Mutual is currently improving its technology to be able to include them.
“Adviser purchases of investment companies have nearly tripled since RDR. The addition of these platforms should be a boost to adviser purchases,” she says.
A Cofunds spokesperson said: “Investment trusts and ETFs are currently offered on the Aegon platform, so as the platform is upgraded towards the end of the year as the deal completes, a broader investment range – including ETFs and investment trusts – will be extended to Cofunds intermediaries. The roadmap is currently being finalised.”
In July FundsNetwork announced it had increased its investment company offerings by a third bringing its total offering to 91.