Cofunds reports asset growth amid uncertain takeover period

Cofunds has said it continued to grow assets despite uncertainty over Aegon’s acquisition of the platform last year.

In a results update today covering the 2016 calendar year – just ahead of Aegon ownership which became effective on 1 January this year – Cofunds says assets under administration ticked up from £76.9bn at the end of 2015 to £83.6bn at the end of last year.

Cofunds turned down a bid from AJ Bell in September 2015, and talks with Aegon reached a verbal agreement last February after months of speculation.

While it quoted profit before tax of £11m, this included the transfer of IPS platform business from Legal and General to Cofunds.

How Cofunds has performed since the Aegon acquisition will be revealed in Aegon’s financial results. First quarter earnings for the provider are set to be released on 11 May.

Cofunds chief executive David Hobbs says: “We’ve made excellent progress in the first few months of 2017 on what is the start of our journey with Aegon.

“With scale on our side, we’re investing in future technology and the transformation of the business is already well under way. The first quarter of this year saw the launch of the advisory board and adviser panel, cementing our commitment to work with our clients, to co-create the next generation of platform services.