Tuesday, 15 January 2013 11:22
M&G to merge its UK Select and UK Growth funds
M&G is to merge two of its UK equity funds, the M&G UK Select fund and the M&G UK Growth fund.
Merging the £550m UK Growth fund and the £81m UK Select fund would bring the total of the new fund to £631m.
Both funds are managed by Mike Felton who has been at M&G, a corporate member of the Institute of Financial Planning, since 2005. He took over the management of the UK Growth fund from Garfield Kiff at the end of 2012 while Mr Kiff now works as deputy manager of the fund.
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The firm said the two funds had become "increasingly similar" due to Mr Felton running the same investment approach on both funds. It said that to align them into a single portfolio would avoid duplication of constructing two funds.
The merger is subject to the approval of the funds' shareholders and requires 75 per cent of shareholders to vote in favour of the merge.
If successful, the merger is expected to take place on 15 March.
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Merging the £550m UK Growth fund and the £81m UK Select fund would bring the total of the new fund to £631m.
Both funds are managed by Mike Felton who has been at M&G, a corporate member of the Institute of Financial Planning, since 2005. He took over the management of the UK Growth fund from Garfield Kiff at the end of 2012 while Mr Kiff now works as deputy manager of the fund.
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The firm said the two funds had become "increasingly similar" due to Mr Felton running the same investment approach on both funds. It said that to align them into a single portfolio would avoid duplication of constructing two funds.
The merger is subject to the approval of the funds' shareholders and requires 75 per cent of shareholders to vote in favour of the merge.
If successful, the merger is expected to take place on 15 March.
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
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