Cofunds in conflict with fund groups over historic price deals

Cofunds is negotiating with asset management firms to renew agreements made years ago which could see groups forced to pay extra lump sums to the platform.

Investment Week understands Cofunds has been attempting to renegotiate deals with asset management groups which sell their funds via the platform. It hopes to maintain prior agreements struck with groups when previous boss Brett Williams was in charge. He left in July 2010.  The deals dictate exactly what Cofunds takes from the AMC of funds it sells. Investment Week understands the original deals saw additional basis points paid to Cofunds out of the AMC by fund groups to help it transform itself into more of a distributor than a facilitation service. Groups agreed to the original ...