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Selestia says it is on target for break-even

Selestia says it will be the first major fund supermarket to stop losing money when it moves into positive cashflow later this year.

The platform says it will reach this point towards the end of the year if it continues to hit its sales targets and it is currently ahead of targets.

This is despite a major systems overhaul at the end of last year, which became necessary after FundsHub, which had carried out Selestia’s back-office admin on an outsourced basis, pulled out of the market.

Selestia now does its aggregation and valuations work in-house, with its fund dealing carried out through JP Morgan, the owners of FundsHub. No further major development work is foreseen in the near term.

Selestia marketing director Bill Vasilieff says assets under management of just over 1.5bn will be sufficient to stop losses and ena-ble the platform to start moving toward break-even and eventuall profitability.

Vasilieff says: “We will be making money towards the end of this year if we continue to hit our targets.”

Cofunds’ assets have rea-ched 4bn and it aiming for 7bn to break even.

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