Investors voted to merge two Share Centre funds with equivalent Investec strategies at an extraordinary general meeting on 23 March.
The move follows a strategic review undertaken by Interactive Investor after it acquired The Share Centre in 2020.
II said that offering an in-house fund-of-funds service “did not align with its core proposition”.
As a result, the authorised corporate director of the ES Share Centre Multi Manager funds, Equity Trustees Fund Services (ETFS), recommended merging the funds with the ES Investec Wealth & Investment fund range.
After securing sufficient backing, the £29m ES Share Centre Multi-Manager Growth and £65m ES Share Centre Multi-Manager Growth & Income funds will be divested to cash and reinvested into Investec funds with effect from 14 April.
The fate of a third fund, the £26m ES Share Centre Multi-Manager Income, will be determined at a further EGM on 30 March.
If backed by 75% of investors, it too will be rolled into an equivalent Investec strategy.
Cheaper charges and fees
Investors will benefit from cheaper ongoing charges figures across all of the Investec funds.
|Current fund||Current fee (OCF)||Investec fund||Investec fee (OCF)|
|ES Share Centre Multi Manager Growth||1.58%||ES Investec Wealth & Investment Growth||1.00%|
|ES Share Centre Multi Manager Growth and Income||1.55%||ES Investec Wealth & Investment Balanced||1.00%|
|ES Share Centre Multi Manager Income||1.65%||ES Investec Wealth & Investment Income||1.00%|
II said the strategic decision was further evidence of its “unconflicted business model”.
Richard Wilson, chief executive of Interactive Investor, said: “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.”
Earlier this year II was praised for sticking to its knitting following a decision to outsource the fund research for its Super 60 buylist to Morningstar.