UK’s Pru to roll trusts into M&G funds

Prudential is proposing to merge three UK unit trusts into M&G funds run by Graham French, Alex Odd, and Matthew Vaight & Michael Godfrey in the latest review of its product range.

The proposed mergers will see M&G take over two funds that have been run for the insurer by BNY Mellon subsidiary Newton since 2004 – the £62m Prudential Newton Higher Income trust and the £164m Prudential Newton Managed trust.

Subject to unitholder approval, the Higher Income trust, run by Newton’s Tineke Frikkee, will merge into Alex Odd’s £1.2bn M&G Dividend fund on 22 June.

The Managed trust, run by Newton’s Nick Clay, will merge into thes £1.2bn M&G Managed Growth fund run by Graham French (pictured) on the same date.

Meanwhile the £417m Prudential Pacific Markets trust, managed by Andrew Cormie, will merge around £30m of assets into the £503m M&G Asian fund run by Matthew Vaight and Michael Godfrey, subject to unitholder approvall.

“Prudential Unit Trust Limited is committed to regularly reviewing its fund and product ranges with the objective of providing investors with a superior long-term investment performance and the service our customers expect from a Prudential Group company,” an M&G spokesman said.

“To date we have successfully merged 14 Prudential funds in the M&G fund range as part of this integration.’

The integration has previously produced a number of high profile mergers, with the £783m Prudential Corporate Bond trust merging into Richard Woolnough’s M&G Corporate Bond fund and the £563m Pru Equity Income trust merging into Odd’s M&G Dividend fund.

 

This article was first published on Investment Week

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