PlatformsMar 27 2015

Profit rise through sales growth at Cofunds

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Profit rise through sales growth at Cofunds

Cofunds has seen an 83 per cent increase in pre-tax profits and sales growth across all channels, according to its end of year results.

Total assets under administration rose to £71.9bn as at the end of December, from £64.1bn at the same time in 2013, while total net flows for the year were £5.4bn

Overall pre-tax profits were £7.7m, up from £4.2m in 2013. The Legal and General-owned platform maintained its position as the UK’s biggest by assets under administration, with a 21 per cent share of the market, according to Fundscape.

David Hobbs, chief executive of Cofunds, said that gross profits increased significantly year on year, “thanks to a combination” of its high AUA, strong inflows from all channels - advisory, self-directed, institutional and bancassurance - and operational service programmes delivering cost efficiencies.

The report stated that recent Budgets have presented platforms with opportunities to be pivotal in supporting advisers managing clients wealth across a range of investment propositions and tax wrappers.

This was illustrated last year by retail pension assets on the platform reaching £3.2bn, driven by flows into the Cofunds Pension Account, with volumes more than doubling during the second half of the year.

Mr Hobbs explained that following acquisition by L&G the platform has contributed annualised cost savings of over £7m per annum to the group by the end of 2014 and Cofunds continues to target £11m per annum by the end of 2015.

“However, there’s still much work to be done as we recognise that a business of our scale should be generating more profit.

“Through working even more closely with our Legal and General Group colleagues, we expect to see greater benefits for our clients and increased efficiencies.”

peter.walker@ft.com