AJ Bell plans to offer a “no-nonsense” range of passive funds to advisers after buying two companies.
The Manchester-based company has bought investment product design company Indexx Markets Ltd and its subsidiary Allium Capital Ltd, which operates a range of funds.
It has also bought Mansard Capital LLP, which provides investment management services to, among others, Allium’s range of funds.
In a statement AJ Bell said: “The acquisition adds investment management services to our business, which gives us discretionary permissions as well as the ability to launch our own funds and build new investment solutions for financial advisers.
“Through this vertical integration we will be able to increase the value we deliver to financial advisers.
“Although early days our initial intention is to offer a no-nonsense, low cost range of passive funds to the adviser market along with a model portfolio service based around passive funds.”
AJ Bell is one of the UK’s largest providers of online investment platforms and stockbroker services.
It has more than 120,500 customers and assets under administration of more than £26.1bn.
Andy Bell, chief executive of AJ Bell, said: “Financial advisers are telling us that they are increasingly using passive investments within their client portfolios and we are looking to build solutions that cater for that demand.
“This acquisition gives us the resources and permissions we need to be able to build new, low cost passive solutions for financial advisers which will add value to what we offer them.”
In August, it was reported that AJ Bell had held talks with Legal & General about buying Cofunds, with the company reported to be in an exclusivity period at the beginning of September.
Neither AJ Bell nor L&G commented on the speculation at the time.
A spokesman for AJ Bell did not comment on whether its acquisition of Indexx Markets and Mansard Capital meant it is no longer interested in Cofunds.
