M&G will merge its high-performing £425m Global Leaders fund into the £2bn Global Themes fund.
The company said the decision was made after Aled Smith stood down as manager of Global Leaders fund.
It had been a strong performer, returning 42 per cent over the past three years years to 19 March, compared with 31 per cent for the average fund in the IA Global sector in the same time period.
The M&G Global Themes fund was, until last year, called the M&G Global Basics fund. Following an extended period of poor performance and a two manager changes, the fund changed its name and investment focus.
It is currently managed by Jamie Horvat. The fund has returned 2 per cent over the past year, compared with 5 per cent for the average fund in the IA Global Sector in the same time period.
Over the past five years to 19 March, a timeframe that includes a period before Mr Horvat becoming manager, the fund returned 31 per cent, compared with 60 per cent for the average fund in the sector in the same time period.
Graham Mason, chief investment officer for equity, multi-asset and retail fixed income at M&G said: "Jamie has done an excellent job since he began managing the M&G Global Themes fund and the recent changes enable him to fully capture current and future trends.
"Our intention through this merger is for our customers currently invested in the M&G Global Leaders fund to be able to benefit from his skills and expertise."
david.thorpe@ft.com
