Old Mutual's Message backs Cofunds acquisition

Old Mutual's Stephen Message is looking to life companies with their own platforms to boost dividend payments for his fund.

The manager of the £64m UK Equity Income fund said life companies with platform arms would be able to achieve dominant positions in the UK market, despite a lack of profitability in the wrap sector. His 5.2% top holding Legal & General recently completed a deal for Cofunds which valued the platform at £175m, despite reporting profits of just £5m. But Message (pictured) said the acquisition would allow L&G to effectively distribute its products. "In the grand scheme of things the outlay is not that massive given the size of their capital base," Message said. He is also backing St...