You are here: AdviserArchive: July 2013

Archive: July 2013

This page is for Professional Financial Advisers only Latest from Cofunds - week commencing 22 July 2013

Making sure you get paid

Setting up a Sale for Regular Payment instruction (SfRP) with your clients can ensure that you receive your fees every month. An SfRP will automatically sell units within your clients' ISA and investment funds every month if their Cofunds Cash Account has insufficient money to cover the cost of any payments due.

SfRPs can be set up to meet the whole of the adviser fee - or simply to cover any shortfall on the Cofunds Cash Account. Setting up an SfRP can therefore be a useful precaution against non-payment.

Clients can choose if a sale is from their investment funds or ISA and have the option to have it taken from their largest fund or one they've nominated. For clients with model portfolios the Sale for Regular Payment will be taken from either their most 'overweight' fund or proportionately from their portfolio.

SfRPs can offer great convenience but clients also need to consider the potential impact on their portfolio:

Benefits
Guards against shortfall in the Cofunds Cash Account
Automatically adjusts to whatever payment is required to cover shortfall each month
Allows client to choose which assets will be sold to meet required payments
Considerations
Can give rise to a CGT liability
If used often, may erode a client's invested capital
May reduce level of assets held tax-efficiently

Notes

  • SfRP can only use funds that are priced daily.
  • An SfRP will sell 10% over the required amount to cover any further shortfall that may result from market movements between the date of the calculation and the date of the sale. Any amount left after the sale will remain in the client's Cofunds Cash Account to be included in the next calculation.

For more information, take a look at the Sale for Regular Payment service. Or find out how to set up a Sale for Regular Payment Instruction at our 'How do I?' section.

Expert Videos

Alvin Hall Find out what investors really want from advisers, with Alvin Hall.
Budget Webinar Cofunds Budget Webinar 2013.
Five Services Stephen Wynne-Jones explains the five Cofunds services.

Last month for regular savings into Aberdeen's Emerging Market funds

Aberdeen's Emerging Markets funds are now closed for new business on the Cofunds platform. Investments into these funds through regular savings will end for pension or SIPP contributions on 26 July 2013, and for ISA, JISA or investment fund contributions on 2 August 2013.

Aberdeen's Emerging Markets funds are now closed for new business on the Cofunds platform following the implementation of a mandatory initial charge by Aberdeen. Investments into these funds through regular savings will end for pension or SIPP contributions on 26 July 2013, and for ISA, JISA or investment fund contributions on 2 August 2013 - with the overall collection amount then decreased accordingly from August onwards. Aberdeen's Emerging Markets funds are:

  • Aberdeen Emerging Markets A Fund Acc
  • Aberdeen Emerging Markets I Fund Acc
  • Aberdeen Global Emerging Mkt Equity D Fund GBP Acc
  • Aberdeen Global Emerging Mkt Equity R Fund GBP Acc
  • Aberdeen Global Emg Mkt Sm Cos D2 Fund GBP Acc
  • Aberdeen Global Emg Mkt Sm Cos R Fund GBP Acc


Video: Why L&G bought Cofunds

Hear Cofunds Chief Executive, Chris Last, explain the reasons why Legal & General bought out the balance of Cofunds shares - as well as what this means for Cofunds.


Need to set up new fee models?

With our Fee Model Set Up form you can request up to 6 fee models to be set up, factoring in the fee type, VAT, minimum and maximum monthly fee amounts as well as a range of products. Fill it in, send it to us and your fee models will be ready within 5 working days.

The new form can be found on the document centre under 'Application forms'.


Corporate actions

View details of recent and upcoming corporate actions.
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