SLI and Ignis: Where could the mergers hit?

Analysts expect a number of Ignis funds to merge or close after SLI buys group from Phoenix for £390m

Fund buyers are expecting Standard Life Investments (SLI) to merge or close a number of Ignis' funds after it agreed to buy the business from Phoenix for a ‘knockdown price' of £390m.

Following the takeover, SLI is likely to turn its attention to the extensive crossover between the two groups' product ranges, which could lead to a number of fund closures and mergers. One of SLI's major objectives has been to capitalise on the success of its £20bn Global Absolute Return Strategies (GARS) fund. Ignis runs the popular £2.7bn Absolute Return Government Bond fund along with a number of other long/short vehicles, and could be a strong addition to SLI's absolute return range. Ignis also runs a £1.1bn UK Property fund, which double the size of Standard Life's equivalent...