Cofunds posted a profit of 7.1 million for 2011, compared to 7.9 million posted for 2010. Revenues grew to 70m in 2011.
The independent custody and administration platform said it 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 12 million. The UK Financial Services Authority will enforce the Retail Distribution Review in Dec. 31 2012. The rules were introduced to ensure retail investors are better informed about investment products, particularly where financial adviser commissions are attached.
Asset growth was also strong in 2011, with Cofunds increasing AUA by over 17% and ending the year with just under 36 billion AUA.
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,” said Martin Davis, CEO of Cofunds.
(JDC)