Old Mutual is planning to convert all its unit trusts to OEICs and to merge several of its investment vehicles it was announced today.
According to Old Mutual, the firm wished to convert all unit trusts to OEICs so they could have a purely OIEC range because it felt the structure was more modern and flexible and also allows dual pricing.
While converting to OEICs, Old Mutual has also proposed merging a number of funds to help improve efficiency and tidy up the fund range.
In a statement to shareholders, Old Mutual says: "The Old Mutual fund range comprises both unit trusts and Oeic funds, and we believe it would be beneficial to convert all our funds to Oeics.
"We would also like to take this opportunity to make some other changes, including merging some funds with similar investment objectives and approach, and adopting the wider investment powers permitted by the FSA."
Old Mutual has proposed four fund mergers:
- The Global Technology Fund and Worldwide Select Equity Fund will both merge into the Global Equity Fund.
- US Select Equity Fund will merge into North American Equity.
- UK Select Large Cap and UK Equity Funds will merge into UK Select Equity.
- The Pooled Pension Fund will merge into the Select Managed Fund.
Commenting on the proposals, Darius McDermott, managing director of Chelsea Financial Services, says: “The conversion to dual-priced OIEC’s is good for them as it’s a more common structure, and although we were quite shocked to see the Large Cap and the Technology fund going, they are obviously tidying up their range.”
Old Mutual has sent details of the proposed changes to investors yesterday and expects ballots to be received by the end of August. If the changes are accepted then they are expected to come into force towards the end of September.
If you would like to comment on this story, contact:
Tel: 020 7034 2682
e-mail: [email protected]
Reasons to be cheerful
Total investment reaches £9m
Medium to long-term capital growth