Cofunds launches DFM service 01 March 2016

Cofunds launches DFM service

Cofunds today has announced the launch of a discretionary fund management service.

The Legal & General owned investment platform has launched the service in response to feedback from advisers and to support them in offering a diverse range of services to their clients.

According to Cofunds, the service has already been piloted with a number of firms.

Investment managers have access to the investor’s accounts on Cofunds and can use tools that assist with maintaining, rebalancing and reallocating portfolios.

Martin Wigginton, head of proposition and product at Cofunds, said: “We’re committed to supporting intermediaries and their clients.

“Our new service allows end investors to have access to a high level of investment expertise, whilst advisers can remain confident their clients’ are receiving specialised investment support they require.”

Daren O’Brien, director at London-based Aurora Financial Solutions, said: “Anything that helps us be more efficient when dealing with rebalancing and our clients portfolios will be welcomed.

“Hopefully this will allow us to offer a wider DFM investment proposition to our clients at a cheaper price.”

Earlier this year, Harrison Spence showed nearly half of advisers use a discretionary fund manager to meet client needs, raising questions about whether IFAs could be the fall guys “in a coming suitability blow-up”.

The consultancy firm’s survey of 150 advisers during November and December showed that 43 per cent use a discretionary manager to meet some of their clients’ needs, while 8 per cent use a discretionary manager to meet all of their clients’ investment needs.