ter of global strategy funds to be reduced
The total expense ratio (TERs) on Investec's Global Strategy Funds are likely to be reduced, following the merger of the Investec International Accumulation Funds (IAFs) into the range.
The result of this merger will be to remove duplication within the group's fund ranges delivering economies of scale for existing clients and enhancing the scale of its core off-shore fund platform.
Mike Ryder Richardson, offshore marketing director of Investec Asset Management, said: "We are continually looking at ways we can improve our fund offering to investors. The recent changes in UK tax regulation allow us to remove unnecessary duplication within our range to the benefit of our shareholders in the form of reduced cost. Subject to shareholder approval, we will in future be able to offer a single consolidated fund range which will now consist of 26 funds covering all major asset classes. As the funds will be larger in size the TERs cost will be reduce."
The investment objective and managers will remain the same for the portfolio as they are currently being run as clones of each other. The range will also include more specialist funds such as the Investec GSF Global Strategic Value Fund and the Investec GSF Global High Income Bond Fund.
The only difference will be for the International Global Balanced Fund that will be renamed the Global Strategic Managed Fund. Subject to shareholder approval it is hoped the investment objective of the portfolio will be changed to allow it to invest up to 75% in equities from 60%. This will allow the fund manager to have a greater weight to equities when the environment is right to do that. However, it will not increase the risk profile of the fund.
The minimum investment for each fund is $2,000. Management fee varies from fund to fund, but the Sterling High Income Bond Fund will see a reduction in annual management charges from 1% to 0.75%. This was because there is a difference in price between the merging funds and it was decided the merger fund would be reduced to the lower value.
Funds will be available for sale through intermediaries as well as funds of funds, trusts and private banks. Countries the products will be registered in include UK, Switzerland, Guernsey, Hong Kong, Taiwan, Maccau, South Africa, Chile, Peru, Gibraltar and Ireland.
The merger has been introduced as a result of the implementation of the UK Finance Act 2004, which allows a distributing share class to sit under the same unit trust umbrella as an accumulating share class.
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