Fidelity is proposing to merge James Griffin’s £151m growth & income fund into his £484m moneybuilder growth fund.
Griffin, who has run both funds since the end of 2009, has achieved near identical returns for investors over the last year, delivering 9.1 per cent in the growth & income fund and 9.2 per cent in moneybuilder according to Morningstar data to April 11, 2011.
Both funds have underperformed the IMA UK all companies sector average of 9.3 per cent for the past 12 months.
Over three years, the growth & Income fund has outperformed, returning 18.8 per cent compared to 14 per cent for moneybuilder. The average return for a UK all companies fund over three years is 14.6 per cent.
Both funds have similar holdings and characteristics with an aim to deliver both capital growth and income for investors.
The group has written to shareholders to get approval for the merger.
A spokeswoman says: “Both funds now have similar holdings and characteristics, in line with their objectives. In light of this, we have decided to merge these two funds to rationalise our UK fund range. This will create a larger fund with more assets under management which will help reduce operating costs, for the benefit of investors.”