By Dylan Emery Merrill Lynch Investment Management (MLIM) is to launch six new sector funds as pa...
By Dylan Emery
Merrill Lynch Investment Management (MLIM) is to launch six new sector funds as part of its Luxembourg fund range.
At the same time, Goldman Sachs is launching five new global sector funds, also from Luxembourg. Both ranges will be launched later this month.
This comes hot on the heels of the recent Barings sector fund launch and is further evidence that sectoral considerations are beginning to outweigh country-specific factors.
MLIM will set up six new funds: a technology fund, co-run by Nick Salter and Paul Meeks; an energy fund, run by Robin Batchelor; a financials fund, managed by James Ellman; a health science fund, run by Jordan Schreiber; a telecoms fund, managed by Vicky Hastings; and a utilities fund, run by Walter Rogers.
These will be combined with the already existing World Mining fund and the World Gold and Mining fund to complete the global sector range in the Mercury Selected Trust umbrella
The funds are denominated in euros and dollars and the minimum investment is $5,000. The MST range already comprises 38 funds worth more than $14bn and is for sale in 20 countries.
Meanwhile, Goldman Sachs Asset Management has announced the worldwide launch of five global sector funds.
The investment universe for these is noticeably different from many other global sector funds: along with the Global Technology Portfolio, launched in 1996, the funds divide between them every industry in the MSCI World Index.
The fund categories are consumer growth, financial services, health sciences, infrastructure and resources and technology.
The Global Sector funds, which will only be distributed through intermediaries, will be sold throughout the world, except into the US, for which US-domestic clones are being simultaneously launched.
The fund process relies on information gathering from Goldman Sachs teams throughout the world.
The global sector team will make the final decision but the portfolio will pass under the scrutiny of separate portfolio construction and risk analysis teams, which monitor all five of the funds.
There are no geographical or sectoral restrictions on the funds, although the mandate is to stay fairly diversified within a concentrated portfolio of 30 to 70 stocks.
Scope for change post-Brexit
To tackle liquidity issues
More than £100m in pipeline
DB data published last week
'Heavily influenced by Morningstar'