View more on these topics

Cofunds losses hit 19.5m

Cofunds made a further loss of 19.5m last year but the platform is upbeat about take-up of its investment bond, which attracted 670m since it launched in April.

The company’s retained losses for its first five years total 120m.

Finance director Andrew Harris says 9bn in assets are held through the platform and revenue was up by 60 per cent to 15m last year from 9m in 2004.

He expects revenue growth to strengthen and exceed 26m next year driven by asset inflows of 1bn a month and a stable cost base.

Harris says the timing of the shift to profitability is in the management’s control but the platform will continue its long-term strategy of focusing on building scale and market share.

He says take-up of the investment bond, launched in partnership with major shareholder Legal & General, has beaten expectations.

Harris says L&G’s unit-linked investment bond took 1.2bn in the first six months of the year so Cofunds has achieved more than half of this figure in its first six months from a standing start.

The investment bond accounts for 30 per cent of Cofunds’ new business, helping drive down its reliance on costly re-registration business, with total new business and re-registered business split 50/50.

Harris says: “We are seeing top-line and market share growth and are controlling our costs and building recurring revenue into the business which our shareholders are comfortable with.”

Recommended

Icob firms should sell PTA without advice

Direct Life & Pensions sales and marketing director Richard Verdin says Icob advisers should sell pension term assurance without advice rather than with a caveat which says they cannot advise on the suitability of the product. Verdin says he knows of specialist protection advisers that do not sell PTA because they are uncomfortable with the […]

Rotten carrots

In the US, a great discussion revolves around the age-old debate of fees v commission. In my own firm, the ratio of fees to commission has changed substantially over the last few years to the point where some fees have no potential to lead to the sale of an insured or collective investment. As a result, we will soon need to set up a separate company for that revenue, if only to keep the VAT return simple.

Gummer pledge to clean up second-charge loan sector

The Association of Finance Brokers insists it can self-regulate the secured loan market after officially launching last week. AFB chairman John Gummer, who holds the same role with Aifa and the Association of Mortgage Intermediaries, says the market is capable of getting its own house in order rather than requiring FSA policing. AFB director-general Chris […]

Bolton says FSA will probe high proc fees

Edeus chief executive Michael Bolton says he expects the FSA to start querying high procuration fees and improve disclosure. DB Mortgages is offering up to 2.75 per cent for fully packaged business while Advantage is going up to 3 per cent, higher than other lenders such as BM Solutions and Edeus. Bolton says the FSA […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment