Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a744141

Cofunds slashes pensions prices as profits fall on regulatory strain

by Robert St George on Apr 01, 2014 at 13:52

Cofunds slashes pensions prices as profits fall on regulatory strain

Cofunds has restructured the pricing of its pension accounts after a year in which the platform’s assets grew but profits shrank.

On the pension accounts, Cofunds has axed both its annual administration charge and establishment charge. The L&G owned platform has also reduced its drawdown establishment charge from £120 to £100, and its drawdown annual charge from £150 to £120.

‘We have long believed that pensions should be at the heart of the overall platform proposition as part of a range of fund and wrapper solutions – not an add-on,’ explained David Hobbs, chief executive of Cofunds.

‘We feel this is the right move to make, particularly in light of the Chancellor’s latest reforms affecting the retirement market, playing our part in the radical changes that will shape the way we all save for our post-work life.’

Publishing its financial statements for 2013, Cofunds also revealed that its total assets under administration had risen from £47.6 billion at the end of 2012 to £64.1 billion now, reflecting a total net inflow for the period of £10.1 billion.

However, the business’s pre-tax profit slipped by 16% from £5 million to £4.2 million.

‘While profits for 2013 are marginally lower than those reported in 2012, this is a reflection of the scale of continued regulatory change the larger established platforms have to undertake,’ said Hobbs (pictured).

‘We’re investing for future growth and are pleased we’ve maintained our profitability for the sixth year and remain one of a handful of platforms that make a real profit.’

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets


From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

More about this:

Look up the shares

  • Legal & General Group PLC (LGEN.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet