View more on these topics

Cofunds’ profit falls 17% despite asset growth

Davis-Martin-700x450.jpg
Departing Cofunds chief executive Martin Davis

Legal & General-owned platform Cofunds saw pre-tax profit fall 17 per cent in 2012 despite growing its assets under administration by 33 per cent.

Pre-tax profit fell from £7.1m in 2011 to £5.9m last year, while AUA increased from £35.8bn to £47.6bn.

The firm’s accounts say AUA was lower than expected, although the directors feel it was satisfactory given the market conditions.

Cofunds’ current AUA stands at around £55bn. The platform admits it expects market conditions to remain challenging.

A statement in the platform’s accounts says: “The group expects that existing competitors and new market entrants will continue to provide strong competition.

“Consistent with the broader economic environment, market conditions will remain challenging.”
Cofunds adds in the statement that it remains in discussion with the Financial Conduct Authority about the effect incoming platform rules will have on the industry.

Legal & General completed its £131m acquisition of the 75 per cent of Cofunds it did not own in March following months of negotiations.

Following the deal, a number of senior Cofunds staff have announced their departure from the platform.

These include chairman Charlie Eppinger, chief executive Martin Davis, head of operational services Stephen Mohan and director of marketing Verona Smith.

Murphy Financial associate partner Adrian Murphy says: “The fall in profit is worrying especially when you consider that Cofunds increased assets under administration so significantly.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com