Columbia Threadneedle  

Threadneedle to merge away five equity funds

Threadneedle to merge away five equity funds

Columbia Threadneedle is to merge away five equity funds as part of a simplification of its fund range.

The mergers will see funds managed by the likes of Richard Colwell (pictured) see assets swell notably. The company is proposing to merge the manager's £352m Threadneedle UK Equity Income (ex LV) fund into his flagship £3.5bn UK Equity Income fund.

Four other proposed combinations will also see the company merge away funds it acquired from insurer LV in 2011. Mark Westwood's £180m UK Growth fund will merge into his £220m UK Select fund, while Paul Doyle's £263m European Growth fund will be combined with his £730m European portfolio.

Article continues after advert

Elsewhere the £45m Pacific ex-Japan Growth fund will merge into the £534m Asia fund managed by Vanessa Donegan. Finally the £50m Japan Growth fund will be merged with the £430m Japan fund, run by Simon Haines since the departure of previous manager Sarah Williams last year.

The fund house said in a communication to investors that it planned to merge the portfolios on 12 May, subject to shareholder approval. 

A spokesperson added: “We have written to clients to propose that five Threadneedle equity funds are merged into similar existing funds. This is mostly an administrative change and it is expected that clients will have the same or lower ongoing charges figure in the new funds.”