In a shake up of mutual funds management, two long-time operators in the space are joining forces to streamline operations expected to save funds shareholders around $1.8 million a year.

Two established mutual fund companies are merging aspects of their funds operations to cut management costs and streamline services. Shelton Capital Management and ICON Advisers announced restructuring plans on Wednesday, subject to shareholder approval, that will merge ICON funds into a Shelton Capital mutual fund trust.

Under the proposed transaction, Shelton will serve as the investment advisor to the ICON Funds, and ICON Advisers will continue to handle daily investment management of a streamlined ICON domestic fund lineup, the partners announced. Berkshire Global Advisors acted as financial advisor to Colorado-based ICON on the transaction. Terms were not disclosed.

Also, as part of the efficiency move, Shelton’s portfolio management team will take over daily responsibilities for ICON’s Emerging Markets Fund, while its International Equity Fund will be merged into Shelton’s International Select Equity Fund. Shelton manages around $2.2 billion in client assets and has offices in San Francisco, Denver and Greenwich.

Shelton CEO Steve Rogers said "innovative" research by ICON's founder Dr Craig Callahan has created products that “are highly rated, have long track records and continue to be ranked among the best products available to wealth managers who utilize these effective tools for their clients.”

Both firms expect to reduce operating expenses by an estimated $1.8 million a year for shareholders and streamline other investment services. The partners announced that it would free up ICON to focus on investment research. “This transaction enables us to focus on what we do best,” Callahan said.