L&G is merging two of its underperforming active funds into other mandates.
The £116.8 million L&G North American trust, currently run by Nigel Holland, will be merged into the L&G US Index trust, leaving the asset manager without an active US proposition. The North American trust is bottom quartile over one, three and five years.
'We believe the best option for our North American Trust unitholders is to merge into the US Index trust, which has a similar risk and return profile but has a superior long term track record to date,' L&G said in a statement.
The firm will also merge the £75 million L&G Pacific Growth trust into the £126.1 million L&G Asian Income fund, which is also actively managed. Both funds are run by Paul Hilsley (pictured). The Pacific Growth trust has returned 2.3% in the three years to the end of May, compared with 6.3% for the IMA Asia Pacific excluding Japan sector, although it has slightly outperformed the sector over one year.
'We believe the Pacific Growth Trust would benefit by moving to the larger Asian Income trust where clients could gain from economies of scale and a more focused approach to investing in mainly Asian securities,' the asset manager said in a statement.
The mergers will take place on 10 July subject to unitholder approval. The changes follow the decision in May to close the L&G UK Absolute fund, prompting the departure of manager Guy Rushton, while last year it closed the European Absolute fund.
Meanwhile, L&G has expanded its distribution team with hires from Ignis, MSCI and Pramerica.
Simon Males has joined as head of active fixed income distribution from Pramerica Fixed Income where he was managing director of UK institutional client relations. In a previous role he was head of institutional business at Pictet Asset Management.
Adam Willis has joined as head of index distribution from MSCI where he was head of sales and relationship management, and Laura Brown has been made head of LDI distribution from Ignis Asset Management, where she was head of solutions.