Cofunds challenges wraps with new unbundled model

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...