Skandia Investment Group chief operating officer Marc Bulstrode has written to investors proposing changes to its  Equity Income and Bond Income funds.

The company is proposing to change the name and investment strategy of its Equity Income, renaming it as the Global Equity Income fund.

According to Skandia, the change would allow the fund to move away from concentrating on UK equities and take advantage of growing dividend opportunities around the world.

It will also move from a fund of funds strategy to a single manager, appointing O’Shaughnessy Asset Management to manage the fund

A one-off cost of less than 0.6 per cent of the value of investors' investment will be associated with the changes.

At the same time the company is seeking approval to rename its Bond Income fund as the Skandia Strategic Bond Fund.

The fund will see its annual management charge reduced from 1.25 per cent to 0.8 per cent and will remove its income 'smoothing' policy.

The fund currently distributes income four times per year with a larger payment at the end of the year. However, the removal of the policy will see income accrued and received paid out at distributed at each distribution date.