Cofunds posts £7.1m profit for 2011
Cofunds, the leading independent platform for financial services, today announces that it posted a profit of £7.1m and grew revenues to £70m in 2011.
The platform remained profitable through difficult market conditions, despite making a significant investment back into the business, including trebling the team focused on helping advisers become RDR-ready and increasing development spend to around £12m.
Strong sales in Q4 2011 saw Cofunds outperform the rest of the market for the 11th consecutive quarter in both gross and net sales, according to Fundscape figures. Asset growth was also strong in 2011, with Cofunds increasing AUA by over 17 per cent and ending the year with just under £36bn AUA.
Cofunds CEO Martin Davis commented: “Our sustained profitability enables us to make significant investment back into the business ensuring we can continue to deliver the services and support that our clients need in this pivotal year. Being able to do so in extremely testing market conditions goes to show just how robust our business model is.
“At the close of Q1 this year we had already added a further £3.5bn to our AUA and had our financial strength rating upgraded from B, ‘strong’, to B+, ‘very strong’, following a rigorous assessment by independent actuaries AKG. This is a significant achievement for the business, especially given the importance advisers quite rightly put on the financial strength of the platform to which they entrust their clients’ money.”