Investors have approved plans by Marlborough Fund Managers to merge its £11.2 million absolute return fund of exchange-traded funds (ETFs) with another fund.

The fund will be merged into the Thesis Spectrum Green fund. Raymond James company iFunds is investment adviser on both funds.

The Marlborough ETF Absolute Return Fund sought absolute returns through capital growth by investing ETFs, whereas the Spectrum Green Fund aims to generate a total return from income and capital growth.

The Marlborough fund has been managed by Nigel Baynes and Stacey Ash since launch in 2005. Over five years, the fund would have returned £1,148 from an initial investment of £1,000.

A spokesman for Marlborough said the funds are similar but the Spectrum Green fund has a more flexible investment focus and a wider range of assets.

According to the company, the merger has been approved by the Financial Services Authority and received 99.6 per cent backing from investors. The funds will merge at the end of the month.

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