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Legal and General to offer cut-price funds through Cofunds

Cofunds is set to offer funds from parent-company Legal and General at a discounted price. 

Legal and General Investment Management will launch a ‘C’ share class on its multi-index funds, priced at a 0.07 per cent discount for Cofunds clients.

The standard annual management charge on the funds is 0.25 per cent but is discounted to 0.18 per cent for Cofunds customers.

Last year Axa moved to offer a discount of 0.2 per cent on Architas funds purchased through its Elevate platform.

It had been told by the FCA it is no longer allowed to offer the discount by cutting the platform fee when clients used Architas funds.

LGIM launched the multi-index range in August 2013. The funds invest through the firm’s own passive instruments.

Cofunds chief executive David Hobbs says: “We strive at all times to give our customers access to the best fund propositions at the best value, and we believe we’ve done just that with our sister company LGIM.

“This fund, when combined in a pension proposition, means that we’re able to deliver a highly attractive option to Cofunds clients, which could be very useful with the significant changes to retirement provision just around the corner.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Yet more smoke and mirrors – a discounted fund from an expensive platform. Investors need to be very careful and not fall for one part of the fund, platform, adviser chain being cheap only to find that they pay too much for other parts.

  2. Surely this is a bias designed to influence the selection of funds in which case the IFA has a duty under COBS rules to ignore it!

  3. Stephen Wynne-Jones 2nd July 2014 at 4:40 pm

    How can it possibly be biased? All this has is a lower price that the fund manager has decided to give Cofunds clients – the price is totally up to the fund manager. It gets no preferential positioning and therefore does not breach any COBS rules.

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