Lazard to merge UK Alpha fund into Custis' UK Omega

Lazard is planning to merge Lloyd Whitworth and Alan Custis' £80m UK Alpha fund into its smaller UK Omega fund, subject to shareholder approval.

UK Omega, run by the same team but with Custis (pictured) as named manager, is a concentrated fund of 25-35 stocks but currently has just £1.5m in assets. The fund has returned 59.5% over the three years to 30 January, according to Morningstar, compared with an IA UK All Companies sector average return of 46.3%. By contrast, UK Alpha has underperformed the peer group, returning 40.2% over the same period. Custis said the 40-50 stock fund had "broadly achieved" its targeted return of 3% in excess of its FTSE All Share benchmark, but added its objective is now less relevant to invest...