Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Cofunds slashes pensions prices as profits fall on regulatory strain

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 or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sam Vecht: the best opportunities in frontier markets

Sam Vecht: the best opportunities in frontier markets

Blackrock's Vecht evaluates frontier markets and explains where he sees the opportunities

Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter