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Egg cuts Invesco funds in Oeic shift

Online provider Egg is removing over half of its range of Invesco Perpetual funds from the platform due to the company&#39s decision to convert its range of unit trusts to Oeics.

Egg, currently undergoing a product refocus, says its costs of conversion – up to £12,000 per fund – are prohibitively high, given the small number of investors in some of the funds. It estimates that, on average, there are fewer than 50 Egg customers in each of the 16 funds, with some containing just one or two investors.

The move leaves only seven Invesco funds on the platform, including its core European growth, European smaller companies and global bond funds as well as the income and monthly income funds run by Neil Woodford.

Investors in the other nine funds must switch to alternative funds or rival platforms, incurring front-end loads even if they transfer within Egg. Invesco admits that Egg is the only supermarket to experience problems with its Oeic conversion but says it is happy with the funds left on the platform.

Invesco head of corporate communications Jane Drew says: “It has been suggested to us that this is part of a refocus at the same time as our conversion to Oeics. It is a solution we are both happy with.”

Egg spokesman James Thorpe says: “We do not want to remove the funds because we get renewal commission from them. But when there are so few people in the funds it is uneconomical to maintain them on the platform as Oeics.”

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