Fidelity has agreed to buy the Egg Invest online fund supermarket, bringing 60,000 customers and £17...
Fidelity has agreed to buy the Egg Invest online fund supermarket, bringing 60,000 customers and £170m onto its FundsNetwork platform.
Due to be completed in the first quarter of 2005, subject to regulatory approval, the deal is for an undisclosed amount, although Egg said the transaction will result in a one-off cost to the company of £3m and lead to annual savings of a similar amount in the future.
Egg Invest is disposing of its fund supermarket, launched in March 2000, to focus on its core UK banking business.
Egg customers will be contacted shortly and asked to consent to the transfer. They will not be charged for transferring assets to FundsNetwork and the move increases their fund choice from 220 portfolios from 25 providers to 900 from 54 groups.
If Egg investors have Isas or Peps through the existing supermarket, Fidelity will become their wrapper provider after the transfer is completed.
The platform will still be available via www.egg.com, with the site including a direct link through to FundsNetwork.
FundsNetwork currently has around £3bn in assets, with this deal boosting the platform to £3.2bn.