Allianz Global Investors has unveiled plans to merge its UK Unconstrained Fund into its UK Opportunities fund, subject to shareholder approval.
Allianz GI said merging the two portfolios will reduce the fixed costs in running the fund, which will allow clients to benefit from lower total costs.
If the merger is approved, the enlarged Allianz UK Opportunities fund, formerly known as the Allianz UK Growth fund, will be managed by UK equities senior portfolio manager Matthew Tillett, who currently manages the two separate funds with distinct but similar portfolios.
Allianz GI said the combined fund will continue to invest in all economic sectors of the UK as well as internationally.
It also pointed out its slightly wider remit would provide the manager with slightly more freedom to seek out the best possible investment opportunities.
Adam Gent, head of Northern Europe retail and wholesale at AllianzGI, said the fund merger ‘makes total sense’.
He added: ‘[This] is just the latest step in our product optimisation plans in the UK.
‘Delivering alpha for clients in challenging market conditions remains our core aim and we will continue to keep our product mix under review to ensure that it best reflects the needs of our clients.’