Pru set for more M&G fund mergers

Prudential is merging another 17 of its unit trusts into M&G funds in the next year as part of a move to separate its retail and insurance brands.

In June, Pru merged five unit trusts into their M&G counterparts.

Pru’s £775m corporate bond trust merged into the £4.1bn M&G corporate bond fund, Pru’s £60m North American trust merged into the £2.3bn M&G American fund while Pru’s £278m managed trust merged into the £717m M&G managed fund.

Pru’s £90m European trust merged with the £175m M&G pan-European fund and the £18m global balanced trust merged into the £718m M&G managed fund.

Brown says the next wave of mergers is scheduled for October but there has been no decision yet on which funds are to be merged.

The mergers will leave Prudential’s retail product range with five dynamic portfolios, a defensive, cautious, cautious growth, balanced and adventurous funds, and two multi-asset funds, the managed defensive and cautious managed growth funds.

Pru plans to launch three new funds, cautious, balanced and adventurous passive funds, in the next year.

Prudential investment director Andy Brown says: “The Prudential brand is an insurance brand and will focus on multi-asset funds, while M&G is a retail investment brand and will focus on both multi-asset and single-asset funds.”

Yellowtail Financial Planning managing director Dennis Hall says: “The bigger that funds become, the cheaper they become, so I think this is a good idea.”