Cofunds has been appointed by Quilter as its fund custodian, in a move that will see £3 billion (around $5 billion) of funds moved onto the platform.

Cofunds will provide Quilter with a full life cycle fund solution from dealing to settlement and from custody to trail management, the firm said.

“One of the key drivers for us was Cofunds’ unrivalled fund coverage across the UK market. That, coupled with its proven track record in this market and AAF accreditation meant that Cofunds was the preferred choice for us,” said Paul Barnacle, head of operations at Quilter and Cheviot.

Quilter’s merger with Cheviot Asset Management in January 2013 has created one of the largest independently-owned investment management firms in the UK with over £12 billion in funds under management, the firm said.

The two brands are operating separately until later this year when they will merge. Cheviot already uses Cofunds as its fund custodian.

In other recent developments, earlier this month Legal & General agreed to acquire the 75 per cent of Cofunds Holdings which it does not already own, for a cash consideration of £131 million.