You are here: AdviserArchive: April 2013

Archive: April 2013

This page is for Professional Financial Advisers only Latest from Cofunds - week commencing 1 April 2013

Cofunds starts new chapter under Legal & General

We're to be wholly owned by Legal & General, which is great news for us, our clients and our partners because it means we'll have the financial might of a FTSE 100 company behind us.

We know that any change in ownership, however positive the outcome, can give rise to questions. Read our blog and we'll try to answer them for you.

Platform charge suspension for pension products

Later this year we'll be enhancing our systems so that, for your clients on explicit pricing with pension products on the platform, the investment-based platform charge can be taken from their Pension Trading Account (within the product wrapper). While this functionality is being finalised we'll be temporarily suspending the monthly application of this charge in respect of the pension products - effective from Thursday, 4 April 2013 until further notice.

As you know, any of your clients on explicit pricing pay a platform charge which has two elements:

  • A fixed platform charge of £40 per annum, paid in half-yearly instalments of £20
  • An investment-based platform charge, with a rate that reduces as assets increase

The platform charges are currently deducted from your client's Cofunds Cash Account. However, we are in the process of enhancing our systems so that, for your clients with pension products on the platform, the investment-based platform charge can be taken from their Pension Trading Account (within the product wrapper).

While this functionality is being finalised we'll be temporarily suspending the monthly application of the investment-based platform charge in respect of the pension products. This will be effective from Thursday, 4 April 2013. This charge will not accrue against your client's account during the suspension period, which will be applicable until further notice.

Please be assured that we'll contact you again to confirm when the charge is to be reactivated.


Streamlining the Cofunds Pension Account application

From Monday 8 April you'll no longer need to print and post the Cofunds Pension Account Application Form. We've enhanced the application journey enabling you to confirm your adviser declaration online - meaning that we'll only need to receive your client's signed Client Declaration Form, along with any discharge forms and supporting documents relating to the application, to open a Cofunds Pension Account.


New funds available and good news from Aberdeen

So far this year, we've welcomed fund managers Odey, Guinness, Hawksmoor, WHEB and Goldman Sachs to the platform with Unicorn, Somerset, Dominion and offshore funds from Threadneedle and MAM launching soon - increasing the number of fund groups on the platform to 103.

We're also pleased to confirm that Aberdeen's range of Emerging Market funds will remain open on Cofunds following the introduction of a 2% initial fee being applied to all new business.

Aberdeen Unit Trust Managers Limited has implemented this charge to the below funds with effect from 15 April 2013.

Aberdeen Emerging Markets Fund - the key onshore fund (onshore)
Aberdeen Global - Emerging Markets Equity Fund (offshore)
Aberdeen Global - Emerging Markets Smaller Companies Fund (offshore)

This charge is to be applied to all new money invested into these funds and will be paid back into the funds for the benefit of investors.

The charge has been introduced due to popularity of the funds over the last year or so, in particular over recent months. Aberdeen has explained that the charge is designed to ensure the quality of the investments in the funds is maintained and protect the interests of existing investors.

This charge will also affect any lump sum investments, regular savings instructions and switches into the fund from 15 April 2013 onwards.


Corporate actions

View details of recent and upcoming corporate actions.
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