OMGI to merge income fund into Generation range

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
OMGI to merge income fund into Generation range

Old Mutual Global Investors (OMGI) is to merge its £48m Cirilium Strategic Income fund into one of the asset manager’s Generation offerings, claiming this has become a “better fit”for investors.

The merger plans, which have been approved by shareholders, will see the Cirilium fund, managed by Paul Craig, merged into the £30m Old Mutual Generation Target 3 portfolio on September 23.

OMGI said the funds had similar risk profiles and investible universe with both also able to invest in third party funds.

The Generation portfolios – managed by Mr Craig alongside Anthony Gillham – were “refreshed” last October, and moved from investing predominantly in third-party funds to directly buying securities.

The Cerilium fund has an ongoing charges figure of 1.24 per cent while the Generation vehicle charges 1.18 per cent.

In a statement on the merger plans, the fund house said: “OMGI believes that the merger is in the best interest of clients as the Generation fund is a better fit for investors looking to seek a long-term flexible income.

“The Generation fund have been designed in collaboration with financial advisers and aims to deliver a total return, helping to both cushion and grow assets, while allowing investors to draw an income level of their choosing.”

OMGI said given the two funds had a similar risk profiles, clients would “continue to gain exposure to a familiar range of assets at a level of investment risk they have already deemed appropriate”.