F&C sets out MM merger proposals

Investors in the F&C Multi-Manager Distribution fund could see their income payouts increase if they agree to merge with the equivalent Thames River vehicle, led by Rob Burdett and Gary Potter.

However, management charges will increase across the range once the two sets of funds have combined. F&C director John Yule has written to investors today setting out the proposals for merging its Multi-Manager range with the Thames River vehicles. The changes will mean the F&C Distribution, Balanced and Cautious funds will merge with the equivalent Thames River portfolios. If the mergers go ahead, the AMC will rise from 1.25% to 1.5%, in line with Thames River's current rate, although F&C believes TERs could shrink due to economies of scale. F&C warns investors even if the merg...