SIG to merge smaller funds following EGM action
Skandia Investment Group is merging a number of its smaller funds into bigger portfolios after changes were voted through by shareholder EGMs.
the Skandia Global Fixed Interest Blend and the Skandia UK Fixed Interest Blend funds are merging with the Skandia Strategic Bond fund to create a £140m multi-manager portfolio in fixed interest. The chief benefit to investors in the funds will be a reduction in the annual management charge to 0.8% from 1.25%, SIG states.
The Skandia UK Equity Blend fund is merging into the Skandia UK Best Ideas fund.
James Millard, chief investment officer at SIG, said: “We are taking this proactive approach because it is not in the best interests of our customers to let our smaller funds erode to a size where the annual management charges start having an adverse impact on investment returns or the funds become unviable for us to run. We believe our customers will benefit from moving into our more established funds which are growing and offer significant investment benefits.”