Cofunds has attributed a year-on-year fall in profits of approximately £800,000 on the burden of regulatory change and investment in the platform by new parent company Legal and General.
The platform reported pre-tax profit of £4.2m for the year, down 16 per cent from just over £5m the year before.
David Hobbs, chief executive of Cofunds, said: “While profits for 2013 are marginally lower than those reported in 2012, this is a reflection of the scale of continued regulatory change the larger established platforms have to undertake.
“We’re investing for future growth and are pleased we’ve maintained our profitability for the sixth year and remain one of a handful of platforms that make a real profit.”
Stephen Wynne-Jones, Cofunds head of marketing, added that the fall in profits was also the result of investment by L&G, which he said corrected what the parent company identified as “historic under-investment” and would result in £11m of ongoing cost savings by 2015.
The platform reported total assets under administration of £64.1bn at the end of 2013, up from £47.6bn at the end of 2012. Total net flows stayed broadly even at £10.1bn.
Mr Hobbs said: “Clearly the economy started to recover towards the end of the period and we experienced a strong increase in flows across all our channels - advisory and self-directed, institutional and bank assurance.”
The results announcement coincides with news that Cofunds will simplify the pricing of its platform.
From today (1 April 2014), the annual administration and establishment charges for both new and existing investors into the Cofunds Pensions Account will be removed.
Several drawdown charges will reduce as well:
• the drawdown establishment charge will reduce from £120 plus VAT to £100 plus VAT;
• the drawdown annual charge will fall from £150 plus VAT to £120 plus VAT;
• charges for a review of income limits for a capped drawdown pension will reduce from £150 plus VAT to £100 plus VAT; and
• the cost for switching capped drawdown pensions to flexible drawdown pensions will fall from £150 plus VAT to £100 plus VAT.
