SGAM to restructure UK equity fund range

Société Générale Asset Management (SGAM) has outlined plans for a rationalisation of its UK fund range.

Under the proposals, the £50 million SG UK Concentrated fund, which the group says has a limited number of share holders, will be merged into the £100 million SG UK Growth fund and will continue to trade under the latter’s name.

SGAM head of UK equities Hari Sandu will remain in chage of the UK Growth fund and there will be no change in its investment objective.

SGAM also plans to merge its £80 million SG UK 350 fund into its £14 million SG UK Specialist 350. The merged fund will be relabelled SG UK Active 350 and remain under the command of David Benson.  

The demand for high alpha in the market is the rationale behind this merger. The UK 350 has a benchmark plus 1 target, while the Specialist 350 has benchmark plus 2 objective. 

The merged fund will retain the track record of the UK Specialist fund and there will no changes to the investment objective.

The mergers will take place on the 29 August subject to shareholder approval.

The funds will sit alongside the three existing funds in the UK range; SG UK Income, SG UK Smaller Companies and SG UK Special Opportunities.