M&G to merge Felton’s UK Select into UK Growth
M&G is planning to merge two of its UK equity funds to create a portfolio with more than £600m in assets under management.
The group intends to merge the £81m UK Select fund into the £550m UK Growth fund, both managed by Mike Felton.
The plans are subject to the approval of at least 75% of shareholders. If approved, the merger will take place on 15 March.
M&G said Felton has been applying the same investment approach to the two funds and, as a result, they have become increasingly similar. Merging the funds will formally align them into a single portfolio, avoiding duplication, the firm added.
Over the three years to 4 January, the UK Growth fund returned 24.5% against a UK All Companies sector average of 28.5%, according to Morningstar.
Felton joined M&G in 2005 as head of retail UK equities, taking over the management of the UK Growth fund from Garfield Kiff in December 2012. Kiff remains deputy manager of the fund.
This article was first published on Investment Week