OMAM to merge income funds

Old Mutual Asset Managers is to merge its two income funds run by Stephen Message, subject to FSA and shareholder approval.

If given the go-ahead, the Equity Income fund will absorb the Extra Income fund by early March, creating a £58m vehicle. In a statement, OMAM says: "The funds have broadly similar investment policies and objectives, targeting above average yields, together with the potential for capital growth over the longer term. "Income and accumulation shares are available for both funds and they share the same charging structure, quarterly distribution dates and minimum investment levels. "These similarities should ensure a smooth merger and minimal disruption for investors." Message took o...