Amvescap Fund Consolidation Effort Continues

As part of a streamlining move, AIM Investments will close down eight of its most poorly performing mutual funds and merge them into other products.

The portfolios, which have combined assets of about $5.8 billion, include the AIM Balanced fund, the AIM Core Stock fund and the AIM Health Sciences fund.

AIM's parent, Atlanta-based Amvescap is a global money manager that has made moves to consolidate its operations in recent years after the bear market and trading scandal.

Last year, Amvescap shed Denver-based Invesco Funds Group by merging its offerings into sibling firm AIM. Invesco and AIM, which have witnessed billions of dollars in outflows, reached a $451 million agreement with regulators last year to settle allegations of improper trading.

AIM's latest clean-up is likely to lead to lower fees for investors, company spokesman David Bachert said.