Vanguard is planning to merge the £1.5bn Vanguard FTSE UK Equity fund with the £1.6bn Vanguard FTSE UK All Share Index Trust to lower costs.
The merger, which is subject to shareholder approval, is due to take place on November 1.
The FTSE UK Equity fund was originally designed to target retail investors, while the unit trust was targeted at institutional investors.
In a letter to shareholders, Vanguard said: “As our experience in the UK market hs grown it has become apparent that the Unit Trust can meet the needs of both types of investor.”
Vanguard said the merger could lower costs due to the extra scale of the combined fund.
A spokesperson for Vanguard said: “The merger will also achieve certain economies of scale through the elimination of expenses duplicated across the two funds and potentially lower transaction costs for investors.”
All costs and expenses relating to the merger will be paid by Vanguard and there will be no costs to investors.
