Man GLG is considering the future of its £25m American Growth fund after shareholders rejected plans to merge it into Henry Dixon’s UK Income vehicle.
The proposal, which went to a vote earlier this month, focused on how to bring about an “orderly closure” of the American Growth offering because of its small size.
In the original proposal for the merger, Man GLG said the company had been “reviewing the position” of the American Growth fund and concluded its assets under management were “such that the fund is now uneconomical to run”.
The proposal despite the fact Mr Dixon’s £112m vehicle was UK-oriented and focused on income, rather than growth, it would suit American Growth shareholders because it was a “defensive type fund”.
However, this has now been rejected with Man GLG thought to be considering its next step.
Man GLG declined to comment on the results of the vote.
