Cofunds is one of the UK’s leading fund supermarkets and is seen to be independent of the control of any one fund manager or investment house.  You can use Cofunds to invest in ISAs, arrange for ISA and PEP transfers, invest directly into unit trusts and OEICs (Open Ended Investment Companies) and life assurance bonds.  You can also build up your pension fund in one place using the wide range of funds available. 

Cofunds now administers over £14.6 billion of investments (as at 31 October 2007) and is owned by six very large established companies - International Financial Data Services (IFDS) which is backed by State Street Bank and is one of the largest fund administration companies in the world, Legal & General, Threadneedle, Jupiter, Gartmore and the Prudential.

The Cofunds Fund Supermarket allows you to access an extensive range of funds run by the UK’s leading fund managers.  ISAs, unit trusts and OEICs are forms of collective investment scheme and as such are an excellent way to invest into equities because they use the advantages of diversification.  ISAs further provide freedom from capital gains tax and any income produced is not taxed in your hands.

Multi Manager Funds

We are particularly keen to see our clients use multi manager funds were possible.  This is because of the added security of an additional layer of professional fund management; the concentration on good asset allocation; the ability to choose an overall level of risk for the portfolio as a whole; the reduced administration; the more straightforward income tax reporting, and simpler capital gains tax calculations.   

Cofunds offers a wide range of multi manager funds.  By using multi manager funds via Cofunds we, as your IFA, are able to outsource the day to day investment decisions to a professional multi manager team, whilst being able to see an overview of your investment portfolio at any time.

The Advantages for You of Using Cofunds
 
The main advantage of using the Cofunds fund supermarket is that you can invest, not only in different market sectors, but also with a range of fund managers. 

By doing this you will be spreading your risk, and helping to safeguard against a downward movement, either in a particular market sector, or because of declining performance by the fund manager. 

The benefits of using Cofunds include:

Consolidation

•   The ability to hold all of your fund investments in one place, whether held directly, or within ISAs, PEPs, a Life Assurance Bond or Personal Pension Plan. Many existing ISAs and PEPs can be transferred without cost, or taking you out of the market, using re-registration.  Over 80% of the funds on the Cofunds platform now allow this.  We may wish to charge a commission/fee to cover our time and administration of this. Once transferred, we can look at your entire portfolio simply and easily and provide valuations to you as and when required. One of the most important aspects of your investment portfolio is its overall asset allocation.  By having your investments administered by Cofunds, we can review your asset allocation through the use of Morningstar tools; more easily advise you on changes to your asset allocation, and make the necessary fund switches once we have your agreement to do so.
•   Cofunds will collect all of the distributions of interest from your bond funds and dividends from your equity funds during each calendar month, and make a single payment into your bank on the sixth working day of the following month.  The payments will be paid or reinvested, according to your instructions, and a tax voucher sent to you.

Choice

•   A very wide choice of funds - Cofunds currently offers over 1,000 funds from 76 fund managers.
•   Low minimum investments per fund – eg just £1,000 per fund or £50 per fund per month into ISAs and investment funds.

Convenience

•   Having to write only one cheque, and complete one application form.
•   Full administration at the Cofunds Chelmsford office, including execution of the transaction at the next dealing opportunity.
•   Being able to track all of your investments through one statement, which is sent half-yearly, thereby reducing your personal administration and making it easier to keep track of your investments.
•   Being able to view the most recent valuation of your investments at any time via the password protected investor section of the Cofunds website
•   Being able to request fund switches at any time.  We may make a charge for this service depending on the frequency of your requests.

Control

•   The ability to create a diversified portfolio tailored to your current objectives.
•   Cofunds use the Morningstar system, which breaks down your investment by geographical location and asset class.  We  can provide you with a copy of this on request.

•   The flexibility to alter your portfolio as market conditions change, easily and quickly by switching between funds and fund managers. This is of particular use if the performance of a fund or fund manager becomes comparatively uncompetitive, or if you wish to move from one sector of investment to another; for example, out of a North American Fund and into a European Fund.
•   The flexibility to alter your portfolio as your needs change, for example to change the emphasis from capital growth to income. There is, for example, a wide choice of income producing funds and fund managers to choose from once you need to start taking an income from your investment rather than concentrating on capital growth.

Cost

•   Cofunds makes no extra charges to you for its services. You would simply pay the normal charges on the underlying funds, or the standard charges for the Legal & General Portfolio Bond, or Portfolio Plus Self Invested Personal Pension. 
•   Where any fund management group is offering a discount on a specific fund and this discount is generally available to the public, you will still obtain the discount on that part of your investment when you use Cofunds
•   Sometimes Cofunds arranges for fund discounts that are not generally available outside of Cofunds.
  To Top

Practical Aspects of Consolidation

If you have existing investments in PEPs, Stocks and Shares ISAs, unit trusts or OEICs we would like to offer you the opportunity to have those investments transferred to the Cofunds Fund Supermarket.

All you need to do is provide us with basic details of your PEPs, Stocks and Shares ISAs, unit trusts or OEICs and we will pre-complete all the necessary paperwork to arrange for the transfer.  We will forward this to you for your signature and any outstanding information.  Cofunds will then do the rest.

There are two types of ‘transfer’.  Re-registration and an actual fund transfer of the fund to the same or a different fund manager.

Re-Registration

A large number of funds can simply be re‑registered to the Cofunds Fund Supermarket.  Where this is possible the re‑registration can be done very efficiently using the Cofunds re‑registration service. 

There is no need to sell and repurchase your fund holding.  The only charge to you may be for our time but we would always inform you of this before carrying out any chargeable work.

Re-registration is preferred, if available, because your investment is never out of the market.

Fund Transfer

Some funds cannot be re-registered to Cofunds and in such cases we will offer you the alternative of a fund transfer.  In such cases your PEP or ISA still retains its tax efficient status.

You can transfer to the same fund, or to one or more other funds within Cofunds. 

We will endeavour to carry out the transfer without involving you in unnecessary additional cost, although we may need to charge a commission/fee for our time. 

Where your existing fund has not performed well, we will recommend an alternative. 

A Potential Risk

It is important to note that where a transfer is involved, your money will be out of the markets for at least five working days.  This could pose two potential risks as follows:

•   Being out of the market for five or more working days may not have any noticeable effect when markets are flat, but it is possible that markets will move ahead strongly during the time that you are out of the market. You would need to reconcile yourself, therefore, to the possibility of missing out on growth in your investment during this period. Of course, it is just as likely that markets could fall back during the period that you are out of the market and then you would have gained by your absence from the markets at that time.  In such a situation it is unlikely that you will feel that to be a problem!
•   The period that you are out of the market may coincide with an interest or dividend payment.  Depending on the particular payment procedures of the investment houses concerned, you may suffer the loss of an interest or dividend payment for the previous six months. This potential problem can usually be overcome by taking care not to use the fund transfer method close to the stated interest or dividend payment dates.

Please note that neither Arch Financial Planning Limited, nor Cofunds Limited, can be held responsible for any loss you incur, including any loss of interest or dividend, for being out of the market during such a transaction.

Personal Advice

Risk Factors

•   Please note that this Guide is simply designed as an introduction for you to the Cofunds Fund Supermarket.  It cannot cover every possible aspect of using Cofunds and is not meant to be exhaustive.
•   This Guide is not meant to be seen as giving advice or promoting any particular product.  These notes are intended as a guide only and do not replace the key features document and full product details that accompany each investment or pension recommendation.  The key features document, in particular, provides you with details of any risks and potential disadvantages associated with the contract recommended.
•   The information provided is based on our understanding of Cofunds charges and administrative procedures that apply currently.  Whilst we believe our understanding to be correct in these areas, we cannot be responsible for the effects of any future changes to their charges or procedures.
•   An investment into an ISA, PEP, unit trust, OEIC, life assurance bond, self invested personal pension, or other collective investment scheme is intended as a medium to long-term investment.
•   It is important that you are aware that the value of units in a unit-linked investment such as an ISA, PEP, unit trust, OEIC, life assurance bond, self invested personal pension, or other collective investment scheme, as well as any income which they generate, can fall as well as rise.
•   If you surrender the contract you may get back less than you have invested.  Most of the fund charges are taken in the early years of investment.  Therefore, if you withdraw during this time you are more likely to get back less than you have invested.
•   An investment into a self invested personal pension is intended as a long-term investment.  Under the new pension rules it is not possible to access the funds prior to the age of 55, unless you take the benefits prior to 2010 in which case they can be taken from age 50.
•   Where past performance is mentioned please note that the past is not necessarily a guide to future performance.
•   Levels of taxation and tax relief are subject to change.  The value of any tax relief will depend on your own circumstances.
•   Charges on the underlying funds may be increased by the Fund managers in the future.

Printer Friendly Version

Cofunds Fund Supermarket

To view the printer friendly version you will need Adobe Acrobat Reader. This software is provided free of charge and can be downloaded by clicking on the icon below.