There will be no change to the Merian European Equity (ex UK) and Merian European Equity Funds’ investment objectives with the funds continuing to seek capital growth by investing in continental and pan-European stocks respectively, however, the funds will adopt the global equities desk’s systematic process. When constructing a portfolio the global equities team assess individual stocks based on a number of factors including the attractiveness of their valuation, quality, price trends, stable growth prospects, investor sentiment and company management. The process also takes other criteria into account, such as the expected risk, trading costs and liquidity of the securities.
Merian Global Investors’ global equities team has a demonstrable track record in delivering long-term outperformance and has a significant allocation to European equities in its global equity funds. In addition to these, the desk manages a number of regionally-focused funds investing in North American and Asian equities. The addition of these European funds expands this regional offering.
The business believes this change will improve outcomes for investors without materially impacting the funds’ risk profile.
Ian Ormiston, who has overseen the funds since the departure of Kevin Lilley in 2017, continues to manage his flagship European smaller companies fund.
Warren Tonkinson, managing director, distribution comments:
“The Merian Global Investors global equities desk is among the most respected and in-demand systematic investment teams in the industry. With significant experience and success investing in European equities, we believe clients are set to benefit from the team’s proven process.”
Ian Heslop, head of global equities, adds:
“Using our adaptable approach we constantly assess market sentiment, flexing our portfolios in order to select the best investment ideas for every economic environment. Despite caution towards European equities, we believe there are exciting outperformance opportunities to be found using our process. We look forward to adding value for investors.”