M&G Investments has announced plans to merge its £81m UK Select fund into the £549.5m UK Growth fund.
The company said the two funds, which are both run by Mike Felton, have become “increasingly similar” in style and construction.
“Merging the funds will formally align them into a single portfolio, avoiding the duplication of constructing two funds,” M&G said in a statement.
The merger will effectively see the UK Growth fund assimilate the assets currently managed in the UK Select fund, which has a less impressive track record.
The M&G UK Growth fund ranked in the second quartile of the IMA UK All Companies sector based on five-year performance to January 14 with a 24.3 per cent return compared with the sector’s 21 per cent average gain.
The UK Select fund underperformed the sector over the same period, returning 18.9 per cent.
