City Financial to overhaul pricing and merge funds

City Financial is to revamp its pricing and merge two multi-manager funds as part of a wide-ranging overhaul of its proposition.

Mark Harris’s City Financial MultiManager Income and City Financial Global Multi-Strategy funds are to be merged together, subject to investor approval, creating a new fund, the City Financial Multi Asset Balanced fund.

The company has also proposed to rename Graham Glass’s £90m City Financial Strategic Global Bond fund to become the City Financial Defensive Global Bond fund. The product will have a “refined” objective to reflect Mr Glass’s strategy of consistent returns with low volatility, the company said.

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Meanwhile City Financial has also announced changes to how it calculates and applies operating expenses to funds. Instead of variable costs affecting funds in different ways, operating expenses will now be fixed on each fund. As a result of the move - which the company said was made in order to comply with FCA rules - City Financial is to launch new share classes and reclassify existing share classes.

Head of UK asset management Ed Rosengarten said the changes to the funds would “provide clarity, better reflecting each fund’s true nature and ensuring consistency across our fund range”.