Prudential has agreed a deal to transfer its Egg fund supermarket clients and £170m worth of assets to Fidelity's FundsNetwork for an undisclosed sum.
In a bid to lighten the financial burden Egg still appears to hold over Prudential, Egg will sign around 60,000 customers and around £170m worth of assets under management to Fidelity’s fund supermarket if the deal is approved and completed in Q1 2005.
Once the deal is signed, all data and investments will be handled by Fidelity, however, consumers will still be able to access all of their investment data alongside other mortgage and savings investments on the Egg platform.
Prudential today announced it would need a greater investment from shareholders of around £1bn to cover regulatory financial requirements and finance future plans, as the firm has so far been unable to dispose of Egg, the online bank.
Disposing of the assets and client bank to Fidelity will initially cost Egg £3m but will eventually save the firm around £3m a year.
Egg customers will be contacted and asked to consent to the transfer to FundsNetwork.
Fidelity now offers access to over 900 funds and 54 providers.IFAonline
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