Omam to merge income funds

Old Mutual Asset Managers (Omam) is proposing to merge the Old Mutual Extra Income fund into the Old Mutual Equity Income fund.

Stephen Message
Stephen Message

Managed by Stephen Message, the two funds have broadly similar investment policies and objectives, targeting above average yields, together with the potential for capital growth over the longer term. 

The Old Mutual Equity Income and Old Mutual Extra Income funds have assets under management of £34m and £24m respectively.

Both funds share the same charging structure, quarterly distribution dates and minimum investment levels, and they have income and accumulation shares. Omam says these similarities should ensure a smooth merger and minimal disruption for investors. (article continues below)

The merger is subject to approval by the Financial Services Authority and to a vote by shareholders in the Old Mutual Extra Income fund. If approval is obtained, the merger will take effect either at the end of February or early March.