Cofunds challenges wraps with new unbundled model

clock

Platform giant Cofunds has denied it is instigating a pricing war with the wraps as it rolls out an unbundled charging model.

The new model, which will go live in the middle of next year, includes a sliding scale platform fee ranging from 0.29% to 0.15%. Cofunds has also requested fund managers issue a "completely clean" share class with a 0.75% AMC. "We believe we should move to a new transparent model where the end investor is much clearer about what they are getting," said CEO Martin Davis (pictured). "This is about driving efficiencies for advisers." All rebates - whether in the form of cash or units - will be paid back to investors, said Cofunds. The FSA recently signalled its intention to ban both c...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Platforms

Manager of Columbia Threadneedle UK Social Bond Simon Bond, who hands over fund management responsibilities at the end of the month.

Square Mile downgrades Columbia Threadneedle UK Social Bond on Simon Bond's departure

Somerset GEM loses rating

Melanie Boulton
clock 08 June 2022 • 2 min read
Global Equity Income became the best-selling IA sector in April

ISA season boost reverses fund outflows

£553m inflows over April

Melanie Boulton
clock 06 June 2022 • 1 min read
Vanguard LifeStrategy is one of the UK's best selling fund ranges

Vanguard expands 'LifeStrategy' brand into model portfolios

MPS Classic and MPS Global

Elliot Gulliver-Needham
clock 06 June 2022 • 1 min read
Trustpilot