Approval to merge funds passed

Equity Trustees Fund Services announce fundholder approval to merge ES Share Centre Multi-Manager Growth and ES Share Centre Multi-Manager Growth & Income funds with ES Investec Wealth & Investment Funds.

• EGM vote proposing merging ES Share Centre Multi Manager Income is Wednesday 30 March 2022

Following the acquisition of The Share Centre by interactive investor (“ii”) in 2020, a strategic review of all business areas was undertaken by ii.

ii’s position in the UK retail investor market is one built on providing impartial information and whole of market access. As a result, it was felt that offering an in-house fund of funds service did not align with ii’s core proposition and therefore a decision was made for ii to resign from its position as the Investment Manager of the ES Share Centre Multi Manager funds (the “Merging Funds”).

As a result of ii’s strategic decision, Equity Trustees Fund Services Limited (the authorised corporate director of the ES Share Centre Multi Manager funds) (“ETFS”) assessed all available options for the ongoing operation and management of the funds. Following this review the Board of ETFS have concluded that the most appropriate and viable option for the long-term interests of the funds’ investors is to merge the funds with the ES Investec Wealth & Investment fund range. 

The proposed merger was subject to an investor vote, and an EGM vote to merge the ES Share Centre Multi-Manager Growth and ES Share Centre Multi-Manager Growth & Income funds with ES Investec Wealth & Investment Funds was passed on 23 March 2022. The effective date of the merger is 14th April.

An EGM for a vote on merging ES Share Centre Multi Manager Income with ES Investec Wealth & Investment Funds will be held on Wednesday 30 March 2022. As with the other two Share Centre funds,it will need 75% of the votes cast on the underlying value of the funds.

The strategic decision taken by interactive investor, underlines interactive investor’s unconflicted business model and clear focus on its core offerings of trading accounts, SIPPs, ISAs and Junior ISAs, as well as original content and impartial investment ideas, delivered through a flat-fee, best-in-class technology platform.

Richard Wilson, CEO of interactive investor, says: “Investment platform administration is where the success of ii has been built, and where we want to stay. We love what we do and believe that investment management is best delivered by specialist providers.

“Equally, we want to continue to do what is best for investors. I’d like to thank Andy Parsons and Sheridan Admans, who have managed the ES Share Centre Multi Manager funds since launch in 2008, moving over to ii in 2020 and ensuring the smooth continuity in the running of these funds.

“Now it’s time to move forward. We want to focus on what we do best: helping our customers take control of their financial future with whole of market investment choice, quality journalism and investment tools.”

Clear focus

The decision follows the transfer of The Share Centre’s stakeholder Child Trust Funds and Protected ISAs and Lifetime ISA accounts to One Family and non-stakeholder Child Trust Fund to Killick & Co last year.

Investec Wealth and Investment is part of the Investec Group. Set up in 1974, Investec Group is a well-established, award-winning business with bases in South Africa and the UK. It manages over £58bn of money for investors. Investments will be managed by Investec Wealth and Investment’s experienced UK investment management team, backed by its research capability and investment processes. 

Strategic review

The ES Investec Investment and Wealth OEIC, and each of its relevant funds, were chosen following a careful review by Equity Trustees Fund Services Limited (ETFS). ETFS is the authorised corporate director of the ES Share Centre Multi Manager funds. It is independent of ii and has a legal duty to act in the best interests of the funds’ investors.

Charges

The ongoing charges figure (OCF) for the ES Investec Wealth & Investment funds are currently lower than those of the ES Share Centre Multi Manager funds (see comparison below).  The investment objectives of the ES Investec Wealth & Investment funds are broadly comparable to ES Share Centre Multi Manager funds, but they are structured in a different way. While the ES Share Centre Multi Manager funds are multi manager, the ES Investec Wealth & Investment funds primarily invest directly in shares, bonds and other assets, selected and managed by Investec Wealth & Investment.

The ES Share Centre Multi-Manager Growth and ES Share Centre Multi-Manager Growth & Income fundswill be divested to cash and reinvested into the equivalent ES Investec Wealth & Investment fund. And if the vote is passed for the ES Share Centre Multi-Manager Income fund, that will alsobe divested to cash and reinvested into the equivalent ES Investec Wealth & Investment fund.

Ongoing Charges Figures