Legal & General Investment Management has merged away two of its UK equity funds run by managers Richard Black and Richard Penny.
The firm has opted to merge the L&G Equity Trust with the £368.9m L&G UK Equity Income fund following a period of weaker than expected performance. The funds are both currently managed by Richard Black.
A spokeswoman from L&G says: “The Legal & General Equity Trust has not been performing to a level we would expect, so we looked at a number of options for the fund and concluded that in the long term it is in the interests of unitholders to propose that the Legal & General Equity Trust be merged into the Legal & General UK Equity Income fund.”
The spokeswoman says both of Penny’s funds have “similar” investment objectives. She adds: “We decided that there would be efficiencies in portfolio construction and trade allocations if the funds were merged. The UK Special Situations Trust has a broader investment parameter, which we thought would allow greater investment opportunities in the long term.”
Each of the funds are expected to be merged during November 2014.