Neptune is merging its Quarterly Income fund into the Income fund on 1 April 2019.
The merger is on the back of increased interest in the larger £195m Neptune Income fund, which subsequently moved to quarterly distribution at the start of this year in response to client demand, chief executive Robin Geffen explained.
Both funds are managed by Geffen with Storm Uru, George Boyd-Bowman and James O'Connor as assistant managers. The two mandates also both sit in the IA UK Equity Income sector and are benchmarked against the FTSE All-Share.
The funds share the objective of targeting a rising level of income with the potential for some capital growth by investing mainly in UK companies' shares and bonds, although the Income fund specifies a high-conviction approach with a focused portfolio of 30-40 holdings.
Launched as a unit trust in 2005, the £3.7m Quarterly Income fund is third quartile over three years, returning 4.3% against the 8.4% sector average, FE data shows. Over one year it has lost 5% versus the 10.6% fall in the sector, making it first quartile.
The Income fund, an OEIC that launched in 2002, is top quartile over both three years and one year, returning 23.4% over three years - versus the 8.4% sector average - but losing 3.4% over one year, compared to the 10.6% fall in the sector, according to FE data.