BNY Mellon and Insight Investment are set to merge their range of UK funds offerings, to provide improved product access to investors after the Retail Distribution Review comes into force on 31 December.

The proposed fund mergers, which are subject to shareholder approval later in the year, are expected to use BNY Mellon’s distribution capabilities and Insight Investments’ investment solutions capabilities to provide a broad range of investment strategies to UK intermediaries, the firms said in a statement.

“These proposed changes are designed to capitalise on Insight’s core investment expertise and provide our intermediary clients with strategies that help investors through the investment lifecycle. With the onset of changes as a result of the RDR, we believe these enhancements are key to providing investors continued access to the capabilities of a world-leading investment management firm,” said Scott Goodsir, BNY Mellon’s head of UK wholesale.

The proposed fund mergers will see the Insight Investment Diversified High Income, Insight Investment Wealth Builder Balanced and Insight Investment Diversified Dynamic Return Funds become the new Insight Global Multi-Strategy Fund, while the Insight Investment Diversified Target Return Fund will be merged into the new Insight Global Absolute Return Fund. Both new funds will be managed by Steve Waddington.

The Insight Investment Monthly Income Bond Fund will be merged into the new Insight Strategic Bond Fund and managed by Adam Mossakowski, with support from Peter Bentley. The Insight Investment Sterling Corporate Bond Fund will merge into the new Insight Inflation - Linked Corporate Bond Fund - managed by Mossakowski and David Hooker.

The Insight Investment UK Equity Income Booster and Insight Investment Monthly Income Funds will be merged into the new Insight Equity Income Booster Fund, while the Insight Investment UK Dynamic Managed and Insight Investment Equity High Income funds will merge into a new fund - the Insight Equity Income Fund, managed by Tim Rees.

Subject to shareholder approval being received at an extraordinary general meeting on 21 December 2012, the mergers will take place on 9 February 2013, and the new funds will all be sub-funds of BNY Mellon Investment Funds.