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Cofunds confident despite £11m loss

Cofunds made a further loss of £11.5m last year but says its revenue is rising faster than its assets and costs are stable.

The platform says it is keen to broaden its product range and is looking at offering annuities and drawdown products.

Finance director Andrew Harris says Cofunds will bed in the cash account it is launching to support fee-based advisers in the new year first before further product development.

He says the anticipated growth of fee-based advisers using Cofunds is likely to see it offer investment trusts and exchange traded funds. But he says annuities would enable the platform to offer a complete investment service through accumulation stage to retirement.

Cofunds’ 2006 annual results show asset growth of £4bn, reaching £10bn in assets under administration. This total has since grown to £13.5bn.

Losses at £11.5m were down by 40 per cent on the previous year’s loss of £19.2m, while revenue was up from £15.1m to £26.2m. Costs rose by 7.6 per cent from £39m to £42m.

Harris claims that the platform would have been in profit if it had not invested so much in development but he believes that the benefits of this expenditure are coming through in terms of strong take-up of the company’s life products and good flows from its IFA consolidation campaign.

He says: “We think that we are the biggest real platform by some measure and with our cash account will be positioned to meet the needs both of fee and commission-based advisers.”

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