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M&G is planning to restructure its UK fund range, including the closure of its UK Growth portfolio and three planned fund mergers.
The firm will close George Tsinonis’ M&G UK Growth Portfolio on 13 March due to the fund’s relatively small size of just under £5 million. The firm also pointed to expected lower levels of inflows, which would mean it cannot continue to manage it economically. The decision has been approved by the fund’s depositary and the FSA.
M&G is also planning three fund mergers and has written to all clients invested in the three portfolio funds. Subject to the approval of shareholders, the effective date of the proposed changes is also 13 March. The proposed mergers include the M&G Growth portfolio which is to be merged with Citywire A-rated Graham French’s (above) M&G Managed Growth fund .
The group believes the mergers will make the funds more flexible and will allow the respective managers to take advantage of the investment powers available under the FSA Rules, which the funds they are proposing to merge the three portfolio funds into already have.