M&G to merge funds of funds

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M&G's Jonathan Willcocks
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M&G's Jonathan Willcocks

M&G has received approval to merge the £40m Fund of Investment Trust Shares, run by Richard O'Connor, into the £811m Managed Growth fund following a shareholder vote.

The merger was proposed due to the similarities in the underlying assets of the two vehicles and dwindling demand for the Fund of Investment Trust Shares; both mainly hold a diverse range of other investment vehicles. It will take place on 14 June 2019.

The Managed Growth fund will continue to be managed by head of the macro and multi asset investment team Dave Fishwick, who took over the fund in 2015 and is the architect of M&G's approach to multi-asset investment.Launched in 1994, the Managed Growth fund invests a minimum of 70% of its assets in other vehicles - mainly M&G funds - investing across the spectrum of asset classes.

The fund can also invest directly in the underlying asset classes. There are no planned changes to the investment process or objective of the Managed Growth fund.

Jonathan Willcocks, global head of distribution, commented: "We regularly review our fund range to ensure we are reflecting our customers' preferences. The M&G Fund of Investment Trust Shares, while popular several years ago, has gained little traction with our customers in recent years. The M&G Managed Growth fund will continue to provide these investors with exposure to a mix of assets and geographies but with a macro overlay."

Over one year, the Fund of Investment Trust Shares has lost 1.9% while the Managed Growth fund has lost 2.6% compared to the 0.3% averagefall in the IA Flexbile Investment sector, FE data shows.