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.
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.”