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Cofunds reports £20m profit
by Alex Steger on May 11, 2011 at 14:44
Fund supermarket Cofunds has posted a profit after tax of £20.2 million for 2010 after receiving a boost from a £12.3 million deferred tax credit.
The platform provider has also announced that incoming chief executive Martin Davis will start in the role in July.
Cofunds' profit came as assets under administration hit £30 billion, an increase of 33.5% on 2009.
Profit before tax was £7.9 million, but was boosted by a deferred tax credit of £12.3 million, taking it to £20.2 million.
Current chief executive Charlie Eppinger (pictured), said: 'We could not be in this financial position without the ongoing support of our clients.'
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5 comments so far. Why not have your say?
Andrew Reynolds
May 11, 2011 at 15:33
Amazing considering their service levels are about the worst in the industry.
report thisDave Knight
May 11, 2011 at 16:14
Service is fine if you do it all online.
Profitability in relation to the FuM figure is miniscule, which rather puts the skids under the argument that platforms are expensive.
report thisBert Poppins
May 11, 2011 at 18:43
@ Dave Knight - I think it shows the costs of running a platform that isn't particularly efficient are high. I agree that is shocking margin but it doesn't mean Cofunds is cheap to the end user just cheaper than it needs to be!
We should also remember that 60% of their profit is derived from a technical accounting policy.
report thisJulian Sunley
May 12, 2011 at 07:28
Well personally I have always had very good service from Cofunds and they continue to be my core platform of choice. The online tools work very well but equally when I have spoken to office team members they have also been very helpful. My broker contact keeps me well informed and on the odd occasion there has been a problem has ensured this was sorted quickly.
The margin may be small but they are one of a small group who are actually profitable as many platforms/wraps are not. Their offering is also considerably wider than it was 4 or 5 years ago and their 'Research Centre' in conjunction with partnering with Technical Connection for, unsurprisingly, 'Technical stuff' means they offer more than just an administration service in my view.
report thisGN Franklin
May 12, 2011 at 11:37
I do almost everything online and both my staff and I have found the system easy to use and effective. Glad to see them in profit as losing them would be a disaster for our industry and set back the efficient management of client assets by years.
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