M&G confirms merger of Income funds

M&G Investments has written to clients to confirm its plan to merge its £208m Income fund into Alex Odd's Dividend portfolio.

As first reported by Investment Week, the group said the portfolios had become increasingly similar since Odd took over the £524m Dividend fund in July last year alongside his role as manager of the Income fund, making a merger an attractive option. Odd said: "Being able to concentrate on a single portfolio will maximise the time I can spend on research and puts the combined fund on the best possible footing to deliver long-term performance for investors." The Income fund, which will merge into the Dividend fund in August, will also pay unitholders a special dividend, according to the...