Canada Life Investments has merged its CF Canlife General and CF Canlife Growth funds to form a new £500 million fund to further expand into the UK market.

The new CF Canlife UK Equity fund will operate a concentrated portfolio of between 40 and 60 stocks from across the market capitalization spectrum, including stocks within the AIM index.

The fund, which began trading on 18 October, will be co-managed by Daniel Monks and Nigel Kennett.

Monks, who joined the firm in 2007, serves as a fund manager for UK Equities and Kennett had recently joined from Nomura as a senior fund manager.

The company said that the merger was in line with its stated strategy at launch into the UK retail market of continuing to review its existing fund range to ensure that it meets the needs of its target investors.