The proposals, which will go through should 75% of voting shareholders vote in favour of the move, are intended to allow Odd to spend more time on stock selection and research.
Odd has managed the funds since July 2010, since which time “the portfolios have become increasingly similar”, M&G said.
“Being able to concentrate on a single portfolio will maximise the time I can spend on research and puts the combined fund on the best possible footing to deliver lomng-term performance for investors,” said Odd.
The firm added that the enlarged M&G Dividend Fund will have a projected annual yield of around 4%, giving investors the same level of income to that which they enjoy in the two separate funds. M&G removed the yield target on the Dividend Fund earlier this year.
