Schroders is to merge its Corporate Bond fund into the Cazenove UK Corporate Bond fund as it continues to streamline its range following the takeover of Cazenove Capital.
The top performing £126m Schroders fund will be merged into the £200m Cazenove portfolio as part of the rebrand of the Cazenove range under the Schroders name.
The enlarged fund will be known as the Schroder UK Corporate Bond fund and will be headed up by Alix Stewart (pictured). The Cazenove fund was previously run by Alex Smitten, who will continue to manage wealth management mandates in Schroders' fixed income team.
Schroders said both funds currently have a similar objective of seeking to deliver income and therefore, subject to shareholder and regulatory approval, the funds will be merged in the second quarter of this year.
Schroders' existing fund has delivered a return of 5.4% in the last year, versus the sector average of 3.2%, while the Cazenove fund has returned 3.1%, according to data from Morningstar.
Robin Stoakley, managing director of UK intermediary, said: "Following the acquisition of Cazenove Capital by Schroders last year, we are looking to simplify the combined range.
"The Cazenove UK Corporate Bond fund and the Schroder Corporate Bond fund have similar objectives. The Cazenove fund is the larger of the two funds and was launched four years prior to the Schroder fund. As a result, we have made the decision to merge the Schroder fund into the existing Cazenove fund.
"There is a great depth of talent and experience within the fixed income team and I am very pleased Alix Stewart will be running the newly-merged fund.
"Alix is an outstanding manager with a fantastic track record and I am confident she will continue to aim to generate strong returns for investors."
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Ceremony will take place 13 November