Marlborough has added five funds to its range through the acquisition of Sun Life Financial of Canada’s (SLFC) investment arm.
This purchase, for an undisclosed sum, increases the group’s proposition from 19 to 24 funds, with Emerging Market, American and European products among the additions.
SLFC Unit Managers (UK) has 13 funds with about £150m under management, boosting Marlborough’s assets to £1.1 billion.
Of the 13, six funds will merge into existing Marlborough offerings, while a seventh, Internet Tollkeeper Trust, will combine with MFM Techinvest Technology, on which Marlborough is authorised corporate director.
Meanwhile, the SLFC Japan Trust is not large enough to be commercially viable and will close on October 10.
Unitholders can transfer to any other Marlborough fund at no cost. (article continues below)
With the five additions, the Cash and Income & Growth Trusts will be managed in house, by Geoff Hitchin and Greg Bennett respectively.
Subject to a vote by unitholders on the merging funds, Marlborough will take over the vehicles later in September
The other three portfolios will be outsourced to specialists, with Mirabaud running the European Trust, Ignis the Emerging Market fund and Boston-based Emerson Capital Partners the American offering.
Subject to a vote by unitholders on the merging funds, Marlborough will take over the vehicles later in September.
Nicholas Cooling, the deputy chairman of Marlborough Fund Managers, says the group’s expansion has long been the strategy and this deal provides the right funds to complement the existing range.
“The compatibility of a number of SLFC funds with our own in terms of investment objectives was one of the attractions of the acquisition,” he adds.
“Marlborough investors will recognise the potential benefits of a growth in fund size and the knock-on effect on fixed costs.”