F&C is merging four of its multi-manager funds into funds at Thames River Capital, which it bought in September for £53.6m.
The £255m F&C multi-manager distribution fund is merging into the £248m Thames distribution fund and the £89m F&C multi-manager cautious is merging into the £180m Thames cautious managed fund. The £89m F&C multi-manager balanced is merging into the £48m Thames balanced managed fund and the £82m F&C multi-manager growth is merging into the £15m Thames equity managed fund.
The mergers will add 25 basis points to F&C clients’ annual charge. They currently pay 1.25 per cent compared with the 1.5 per cent on the Thames funds.
But Thames River head of UK sales John Yule says: “The enlarged funds will have greater economies of scale, which will help to reduce the total expense ratios of each fund over the longer-term.” F&C fund shareholders approved the mergers by a 99 per cent majority.
F&C’s former head multi-manager Dean Cheeseman quit the firm after it put Thames River multi-managers Gary Potter and Robert Burdett in control of the combined range in September. Cheeseman’s former colleagues Paul Carne and Catherine Sauer have now joined Thames River.