Merrill Lynch is considering altering the risk profile of its onshore European Growth fund to bring ...
Merrill Lynch is considering altering the risk profile of its onshore European Growth fund to bring its investment strategy more in line with that of its offshore sister product, Mercury OST European, writes David Griffiths
Both portfolios are managed by Michel Legros, although the European Growth fund is currently marketed as a low to medium risk product, while the offshore fund is promoted as high risk.
This would not be the first time Merrills has transferred its offshore success onshore. In October 2000, the group launched the UK Dynamic fund, an onshore clone of the offshore MOST United Kingdom fund.
Legros said: 'We're thinking about the positioning of the European Growth fund. One option would be to pursue a more aggressive strategy but nothing has been decided yet.'
The AAA-rated MOST European fund has £200m under management, and over the three month period to 16 July is ranked 29 in the Equity Europe ex UK sector, returning -7.5% on a bid to bid basis. Over three years, it is ranked six, offering returns of 12.5% on a bid to bid basis. Over the same three month period, the European Growth is ranked 101, with returns of -10.7% on a bid to bid basis. Over three years, it is ranked 36 in the Europe excluding UK sector, with returns of -3.4% on an offer to bid basis.
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