Walker Crips to convert entire range into OEICs

Walker Crips is seeking regulator and unitholder approval to convert its entire fund range from unit trusts into OEICs.

The group has already received approval from its administrator Capita and has been in discussions with key unitholders for some time about converting the top performing range.

Steve Bailey, who runs the majority of the £800m fund range alongside Jan Luthman, said the move is in line with Retail Distribution Review requirements which are expected to come into effect next year.

Paul Hyde, head of sales at the group, said: “Unit trusts are no longer the primary product people look to have and everyone is familiar with the OEIC single pricing structure. It also allows us to have multiple share classes on the funds in order to comply with RDR.”

OEICs were first sold to investors in 1997, but in 2001 the FSA relaxed rules regarding the types of unit trusts which could convert, leading many fund houses to move to the OEIC structure.

The Walker Crips funds affected include £182m UK Growth, £19m UK High Alpha, £202m Equity Income, £22m Corporate Bond portfolios, all of which are managed by Bailey and Luthman, and the £7m Select Income trust run by Andy Tuck.