View more on these topics

Cofunds sees profits falls 17% to £6m

Departing Cofunds chief executive Martin Davis

Legal & General-owned platform Cofunds has seen pre-tax profits fall 17 per cent to £5.9m in 2012, down from £7.1m in 2011.

Assets under administration on the platform grew 33 per cent to £47.6bn, up from £35.8bn the previous year.

Despite the growth, the firm’s accounts say directors see AUA as lower than expected although they say it is satisfactory in current market conditions.

Cofunds’ current AUA stands at around £55bn.

Turnover increased 5 per cent to £73.8m from £70m in 2011.

The platform adds it expects market conditions to remain challenging while it also remains in discussion with the Financial Conduct Authority over the effects of incoming platform rules.

A statement in the firm’s accounts says: ”The group expects that existing competitors and new market entrants will continue to provide strong competition and consistent with the broader economic environment, market conditions wil remain challenging.”

L&G completed its £131m acquisition of Cofunds in March following months of negotiations between the firms.

Following the deal, a number of senior Cofunds staff have announced their departures. 

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


Shaun Sandiford: Share class debate should not hinder re-reg

To paraphrase Albert Einstein; there is no difference between large and small problems, for issues concerning the treatment of people are all the same. You may be wondering what Albert Einstein has to do with financial services and the world of platforms, but I believe parallels can be drawn between the current debates around clean […]

BSA appoints replacement for director general Adrian Coles

The Building Societies Association has appointed Robin Fieth as its new chief executive. Fieth, who is currently the executive director of members and operations at the Institute of Chartered Accountants in England and Wales, will take up his new role on 1 December. He replaces director general Adrian Coles, who in January announced his decision […]

ABI to develop industrywide protection stats definitions

The Association of British Insurers plans to develop industrywide protection claims definitions after concerns were raised about a lack of consistency in the way providers report the figures. Until recently, many insurers published claims data for life cover and CI products but not IP. They argued without consistent reporting standards, the data cannot be meaningfully compared. […]

Multi-manager’s View: Looking east

Although more volatile recently, Japanese equities were the best performers in the first quarter, as expectations were raised by new Prime Minister Shinzo Abe’s promises to try to return the economy to growth. Most notably, he unveiled a stimulus plan which is hoped will push GDP growth up by 2 per cent and create 600,000 […]


News and expert analysis straight to your inbox

Sign up


There are 5 comments at the moment, we would love to hear your opinion too.

  1. By my calculations £70m from £36bn = 19bps, £74m from £48bn = 15bps. A combination of competition, RDR and institutional assets. See here for more spooky predictions:

  2. Stephen Wynne-Jones 7th June 2013 at 3:18 pm

    The context to our results is at this link

    We think it’s a solid performance while we invested in IT for RDR, and supported our clients through monumental change.

    How many other platforms grew sales and made £6m profit during RDR?

    We still have lots of work to do, but these results aren’t doom and gloom.

    Stephen Wynne-Jones
    Head of Marketing

  3. Following the fallout on Twitter. My goodness … lessons on how not to represent your company on social media! It would be advisable to be dignified and not react with such a defensive attitude so publicly.

  4. @Stephen Wynne-Jones

    “…..supported our clients through monumental change…” You did what? Not where I’m standing!

    1. I was badgering Cofounds to let me know precisely what proposition they had on offer from the start of 2012. All I got was if’s and maybe’s. My clients have always had the choice of paying my funds under management charge directly or have it taken from the platform. I was assured that pro rata sell down would be an option – right up to November 2012. Finally your daft proposition appeared. Sell down form the largest fund or take from the income. What a crackpot way of doing things. Then I was told – “Don’t worry you can do model portfolios and then do pro rata sell down”. I don’t do Tesco type investments for my clients – they all get bespoke.

    2. Then we get a drop off of service which I found monumental. Right up to mid-2011 I found Cofounds a great firm to deal with. Excellent service from a dedicated point of contact. Now you’re lucky to be able to get hold of anyone. God knows what they do, but they are invariably on voicemail and away from their desks. Call centre? Not bad as far as it goes, but you never speak to the same person twice and are often shuffled from department to department if the enquiry isn’t ‘vanilla flavoured’.

    3. You also seem unable to get your head round the fact that not everyone segments clients. Some of us ‘segment’ at outset. i.e. if we don’t value the prospect we don’t take them on, but once a client we feel that everyone deserves of our best. Why should we give some clients a lesser service? Everyone’s money is important to them.

    4. Transferring off platform? How about this then? “Cofunds completed the transfer on 9th April (After receiving the applications in February), but only issued the Stock Transfer forms to the fund managers on 21 May” I have been submitting transfers steadily since the start of the year and not one has been completed as I write. I am well aware that you will also seek to place as much blame onto the receiving platform as you can, but undeniably much of the delay is down to you.

    This is of course is only a brief selection.
    If this is what you think is support, perhaps you need to descend from your Ivory Tower.

  5. Anonymous, whoever you are, what’s defensive about explaining your numbers? The explanation looks sensible to me. If I were Cofunds I would be more worried about Harry K and his sorry list of moans – seems like they are in a right old mess

Leave a comment


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