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.’