UK - Merrill Lynch Investment Managers (MLIM) has launched three new fixed income funds to make bond allocations generate higher levels of alpha.
The new funds also form part of MLIM’s liability solutions product range, which has attracted over £4bn of assets since 2003.
The three funds are; High Performance over 5 years Index Linked Gilt Fund, High Performance over 15 year Gilt Fund and High Performance Cash Fund, and are offered via a Jersey-based pooled umbrella vehicle.
The target is benchmark +2%, gross of fees. Chris Fellingham, head of fixed income at MLIM, will lead the 14-strong team in London.
Fellingham commented: “Clients are demanding higher performance from their bond allocations particularly as schemes seek to deal with pension fund deficits.
“With pension scheme liabilities tied to bonds, this product range offers our clients higher alpha whilst limiting the increase in risk.”
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.