SIG is to merge its £29m Global Fixed Interest Blend Fund and its £53m UK Fixed Interest Blend Fund into the recently renamed £59m Strategic Bond Fund to create a single multi-manager fixed income offering.
Investors in the two funds to be merged away will see annual management charges drop from 1.25% to the Strategic Bond Fund’s 0.8%, SIG says.
SIG is also to merge its £39m UK Equity Blend Fund into the £146m UK Best Ideas Fund, saying that both funds share “very similar investment objectives and identical AMCs of 1.5%.
“It is not in the best interests of our customers to let our smaller funds erode to a size where the annual management charges start having an adverse impact on investment returns or the funds become unviable for us to run,” said SIG chief investment officer James Millard.
The changes received shareholder approval on 20 June and will take effect as of 30 June.
