Merrill Lynch Investment Managers (MLIM) will launch an aggressively managed European fund, to be ru...
Merrill Lynch Investment Managers (MLIM) will launch an aggressively managed European fund, to be run by the same team as its £719m Mercury Offshore ST European portfolio, in the spring of next year.
European Dynamic will have slightly higher risk characteristics than the company's core onshore European fund and will operate on a style neutral basis.
The fund will be similar in tone to MLIM's UK Dynamic fund, effectively a mirror version of the MOST UK fund, which launched in October last year. European Dynamic is to be managed by the company's European specialist mandate team, which is headed by Michel Legros.
Like the institutional mandates the team runs, the retail onshore vehicle will have a concentrated portfolio of between 40 and 60 stocks.
Managing director of UK retail Michael Jones said: 'This fund will be stock selection driven and will take a pragmatic approach to style, adopting whichever style is right for the market conditions. As it has a higher risk profile, it should offer better returns than the core fund over the long term.
'This launch is based around the strong long term performance we've had on our institutional mandates. It's a tried and tested team and process.'
As well as mainstream intermediaries, the fund is designed to appeal to discretionary and fund of fund managers looking for a more aggressive European fund. Its charges will likely follow those on the UK Dynamic fund, which has an initial fee of 5.25% and an annual management charge of 1.5%. On Isa and Pep business, intermediary commission is 3%, with 0.5% renewal paid every six months to brokers whose clients invest with the company for more than 12 months.
MLIM is also currently reviewing its sales and marketing operation as part of a push to develop the Merrill Lynch brand in the UK.
Jones said: 'Performance, pricing and the quality of sales support are the key areas taken into consideration when IFAs look at a fund and these are the areas we're going to be focusing on.'
John Clougherty, head of UK retail sales, said MLIM is looking to hire between 11 and 13 sales and servicing staff over the course of the coming year.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till