Henderson New Star has confirmed the merger of three funds in the first step of its fund rationalisation programme.
The assets of the New Star Hidden Value and New Star Select Opportunities funds will be both be merged into the New Star UK Alpha fund, formerly managed by Tim Steer.
In April this year the management of UK Alpha was assumed by Stephen Peak and the merger, which is expected to take place sometime between the third and fourth quarter of this year, will create a fund with assets of over £200m.
Meanwhile, the group will also merge the New Star Equity Income fund into the Higher Income fund, formerly managed by Toby Thompson. Since the merger between Henderson and New Star in April, the two funds have been managed by Graham Kitchen, the head of UK equity at Henderson, and Andrew Jones, UK equity manager.