ABN Amro Asset Management is to merge two of its UK equity funds on 5 November, writes Jane Wallace ...
ABN Amro Asset Management is to merge two of its UK equity funds on 5 November, writes Jane Wallace
It is intended that Growth & Income will be merged into Equity Income. Both portfolios are run by George Luckraft, who will continue to manage the enlarged Equity Income fund
Letters were sent out last week to unitholders. A vote will take place at a unitholder meeting on 8 October
Nick Wells, operations director at ABN Amro Asset Management, said: "Growth & Income doesn't fit into any particular sector since Autif changed the sector classification and the only alternatives now are either the Equity Income or All Companies sectors
"It is quite clear that the days of providing growing levels of income through bigger dividend distribution are gone. About 30% of the FTSE 100 companies have either bought back shares or have indicated they will do so. In the future, companies will look to deliver shareholder value in different ways
"We are essentially tidying up and modernising the fund. I think unitholders will welcome the move
There is no change to the charging structure. There is a 5% initial charge, 1.25% annual management fee, with 3% initial commission and 0.5% trail
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till