Aegon continued its deal spree today (19 August), after reaching an agreement with Nationwide to continue to offer Cofunds’ investment services to the building society's customers.
The Dutch insurer announced it had signed a deal to power the Investment Portfolio Service, which is used by Nationwide’s investment customers.
Online offering IPS is powered by fund supermarket Cofunds and helps customers and their advisers manage their investments, including stocks and shares Isas, funds and unit trusts.
Nationwide is one of the largest companies using IPS, with £8bn of assets managed through the service.
The move comes a week after Aegon confirmed a deal to buy Cofunds for £140m. Meanwhile, in May, the provider sold off its annuity book to Legal & General for £2.9bn and signed a five-year distribution agreement to ensure its customers still had their annuities paid.
Mark Till, Aegon’s chief distribution and marketing officer, said the acquisition of Cofunds and IPS provides certainty over the long-term ownership of the business.
“We’ve made it very clear we intend to invest in the technology and service behind the business,” he stated, adding that Nationwide’s commitment to working with IPS shows the building society has confidence in Aegon’s business model.
Mr Till said new and existing customers who use IPS should benefit from the same technology upgrade and investment which Aegon is providing to retail advisers currently using the Cofunds platform.
katherine.denham@ft.com
