Asset Management

Novia Profits Soar On Investment Arm Sale

Mark Shapland Reporter London 17 June 2014

Novia Profits Soar On Investment Arm Sale

Online platform Novia has recorded a increase in profits for last year following the sale of its Investment Services arm to Aegon.

Online platform Novia has recorded a increase in profits for last year following the sale of its Investment Services arm to Aegon.

Aegon paid £7 million ($11.9 million) for the arm resulting in profits at Novia jumping from £0.8 million to £7.8 million for the year ending December 2013. Novia’s investment arm was a joint venture set up in 2011 to build Aegon’s Retirement Choices platform.

Assets under management also jumped from £1.4 billion to £2.7 billion while revenue was up 84 per cent to £18.8 million from £10.3 million over the year.

The number of IFA firms which submitted business also increased by 29 per cent compared to 2012, while the average value of submitted business per firm increased by 28 per cent.

In September the firm launched its own fund management arm named Copia Capital Management. Assets in Copia currently stand at £10 million, with 70 of the platform’s advisor firms using the service.

“We are also delighted to be able to report a significant rise in pre–tax profit for the year,” said Bill Vasilieff, chief executive.

“Whilst a significant proportion of this was from the bringing forward of the intra group fees following the completion of the agreement between Novia and Aegon, the remainder was from sound execution of the core business strategy of growing assets through an excellent service proposition and first class technology.”

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