Cofunds, the UK’s largest investment platform, has launched Cofunds Institutional Services, a new business unit which will focus on wholesale fund trading, settlement and custody as well as accounting for and managing any trail commissions.
The new business unit will be headed by Stephen Mohan, who has been promoted to managing director, Cofunds Operational Services. He will be supported by Christopher James, Hamish Rowan-Hamilton and Anthony Wolfe.
“Cofunds Institutional Services will cater for the needs of discretionary asset managers and private client stockbrokers as they make increasing use of funds, as well as life insurance companies who are embracing open architecture and global custodians.
The problem they face is that that dealing and settlement for investment funds is entirely different from the securities markets. Those responsible for portfolios which contain securities and investment funds have always had substantial operating problems. The increasing use of funds which pay trail commission is now an added complexity.
This is where Cofunds can help. As the largest independent fund platform in the UK, we have established, efficient processes for dealing and settlement across the funds market. We can also offer a degree of flexibility in service delivery compared to the somewhat limited and rigid nature of some other approaches.
With our proven, scaleable systems infrastructure, we are able to support a comprehensive, robust, wholesale proposition. Our aim is to be the Intel of the investment funds world, working with other firms to simplify and improve their administration and reduce their costs.
Particularly in last 18 months we have seen increasing demand for our services from a range of discretionary asset managers and private client stockbrokers, as well as SIPP providers and insurance companies. We are developing a healthy pipeline of institutions who have expressed an interest in the service and look forward to making announcements of new business wins in the future.
The new business unit reflects the importance that Cofunds now attaches to this area of its business and allows delivery of a service designed to meet institutional client requirements. A key benefit is the addition of Institutional only funds to this service, providing access to the full range of investments required in this sector.
Today we are making a further important step in providing dedicated resource to support this exciting development,” says Mohan.