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£100M MMC funds get FSA approval for the UK

MPC Investors has got regulatory approval from the FSA to bring its global convertibles and strategic reserve funds to the UK retail market.

The portfolios have taken over £100m since their launch in January under the management of Miles Geldard and Lee Manzi. The pair, who joined from JP Morgan Asset Management last year, use the same strategy on the Luxemburg-registered Sicav as they did at JP Morgan.

The global convertibles fund invests in a broad spectrum of global convertible bonds. It uses the inherent total return characteristics of convertible bonds to capture much of the upside in equity markets while minimising capital losses if equity markets fall.

The strategic reserve fund has a target return of 3 per cent above cash. The fund takes positions in bonds, equities and convertibles while taking tactical advantage of other assets such as currencies when there are opportunities.

Geldard managed the multi-asset total return funds at JP Morgan, including the highly successful capital preservation fund that took in more than £2bn in 2005.

MPC chief executive Peter Harrison says: “FSA recognition for our funds will mean that we can reach a much wider audience.

“The funds are now not only available for distribution in the UK but they are also sterling-hedged and are tax-efficient for UK investors due to their distributor status.”

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