Morton’s fund will be renamed as the Franklin UK Rising Dividend fund at the end of January 2015.
The focus of the fund will also be shifted to invest across all market caps using the FTSE All-Share as it benchmark with the aim of providing income and capital growth by investing in companies with consistently rising dividends.
The fund aims to specifically target stocks that pay out less than 65 per cent of current earnings in dividends and reinvest remaining earnings for future growth.
Morton will continue to manage the newly rebranded product which will sit alongside Morton’s other £152.4m Franklin UK Equity Income fund.
Portfolio managers Ben Russon and Mark Hall are also expected to remain on the investment team of the UK Rising Dividend fund.
Morton says: “It is likely that the Franklin UK Rising Dividends Fund will have a bias towards FTSE 100 companies as many of the stocks that currently meet the criteria are large cap stocks.
“However, the Fund will be unconstrained by market cap, and will therefore have exposure to UK companies from across the market cap spectrum with the aim of delivering a steadily growing income for investors. Though some changes will be made to the portfolio, a significant proportion of holdings will remain unchanged when the Fund refocus takes place in January.”