Felton took over lead management of the M&G UK Growth Fund in December. Former lead manager Garfield Kiff became assistant manager on the portfolio.
The merger, which is still subject to shareholder approval, is expected to take place on 15 March. At least 75% of shareholders have to approve of the move for it to go ahead.
A statement by M&G said: “[Felton] has been applying the same investment approach to the two funds and, as a result, they have become increasingly similar.
“Merging the funds will formally align them into a single portfolio, avoiding the duplication of constructing two funds.”
According to FE Analytics, both of the portfolios sit in the third quartile of the IMA UK All Companies sector over three years, with the M&G UK Growth Fund returning 25.6% and the UK Select Fund delivering 23.6%. The average peer group return was 27.6%.
