UK - Merrill Lynch Investment Managers (MLIM) has extended its range of products for institutional pooled fund clients with the launch of a US relative value fund.
MLIM said the US Relative Value Fund exploits inefficiencies in the US stock market by using a proprietary equity screening process to select 30 to 40 stocks and will be measured against the Russell 1000 Value index.
The new fund will be managed by a US-based team of three senior portfolio managers, supported by three analysts, the firm said. The team uses an investment process that combines appraisal of economic sectors and industries with bottom up analysis and equity selection.
Fred Gaskin, head of Merrill Lynch’s US relative value team, said: “Our approach can be boiled down to thorough research, discipline and a healthy degree of scepticism for market consensus. This will now be available to our pooled fund clients who are increasingly seeking access to special products such as this fund, managed by a team with a consistent performance record.”
MLIM said research of the stocks is carried out with emphasis on historic, rather than estimated or projected valuations.
“The thinking is that a disciplined approach, compulsively mindful of price and margin of safety, is a sensible long term plan regardless of market or economic cycle,” the firm noted.
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