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As part of the agreement, IFDS will allow Cofunds to use its administrative processes and technology that helps support the platform.

Currently IFDS provides third-party administration for a number of fund groups and their platforms, having won over firms such as Rensburg Fund Management and Octopus Investments this year.

New Star Asset Management, Aberdeen Asset Management, F&C Investments, Gartmore Investment and Neptune Investment Management have also signed up.

Dick Eats, head of communications at Cofunds, said the platform was extending a five-year contract with the administrator because IFDS was the largest competitor in their field and the system had been volume-tested.

As Cofunds was a volume player it made sense, he added.

The new deal marks a contract extension until the end of 2017 and continues the close ties between Cofunds and IFDS, which owns a stake of slightly less than 25 per cent in the platform.

Stephen Mohan, managing director of operational services at Cofunds, said: "The relationship between the two companies remains core to the continuing development of our platform proposition.

"The extension of this relationship further strengthens the positions of our respective businesses and will help ensure Cofunds is able to further develop its high-quality service into the future."

Simon Hudson-Lund, chief executive of IFDS, added: "This sets a firm foundation for Cofunds’ continued growth and further reinforces the position IFDS has within the transfer agency technology and services market."