Big firms still to agree on Cofunds' pricing
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Eight of the big fund groups are yet to sign up to Cofunds’ new pricing arrangements despite the platform aiming for all companies to agree new terms by January.
Marketing and proposition director Alastair Conway says nearly a third of the 30 big fund firms on Cofunds have yet to sign up to the terms.
Around 60 small companies on the platform will move to the new terms in January.
In October, Cofunds signed an agreement with Schroders over pricing terms, followed by a long-term partnership arrangement with Thread- needle in November. Conway says that Investec has also agreed new terms.
Conway says: “For the key 30 groups, the largest 30 groups, we are two-thirds of the way through finalising an agreement. We would like to conclude as much as we can by the end of the year but if it drifts into next year we are happy with that.”
He says none of the smaller groups has left the platform over the pricing changes. One firm is expected to leave in January but he insists this is as a result of retail volumes, not pricing.
Conway says: “Nobody has left the platform as a result of this change and I do not believe they will.”
Threesixty partner Phil Young says: “With £22bn of assets on the platform and only a very modest profit to show for it, it is pretty apparent that Cofunds needed to do something to their model to make more margin.”
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