Old Mutual Global Investors plans to merge away Lee Freeman-Shor’s Skandia UK Best Ideas fund owing to its overlap with another product.
A spokesman for the asset manager says the proposed merger with Simon Murphy’s £80m Old Mutual UK Select Equity fund will be voted on by shareholders on 28 February.
The merger is intended to take place on 11 March.
Murphy’s fund is also due to be renamed the Old Mutual UK Equity fund.
A statement by the group says: “We keep the fund range under regular review and this was an area of overlap within the combined Old Mutual Global Investors range following the merger of Old Mutual Asset Managers and Skandia Investment Group.
“The two funds have similar targets and we believe investors will be best served by combining these into one vehicle.”
The £118m Skandia UK Best Ideas fund, which launched in October 2006, is ranked first quartile in the IMA All Companies sector over one and three years but fourth quartile over five years and since launch.
Murphy’s £89.6m fund, on the other hand, is ranked second quartile over one year and first quartile over three and five. The portfolio launched in March 1971.
Freeman-Shor’s £273.2m Skandia Global Best Ideas and £43.7m Skandia UK Strategic Best Ideas funds are unaffected by the proposals.
Charles Stanley Direct head of research Ben Yearsley says: “The Skandia UK Best Ideas fund never really worked as it was hoped it would. I think it is probably the best thing Old Mutual Global Investors could do by merging the fund away and giving investors another option.”