UK DYNAMIC FUND
Type: Unit trust.
Aim: Growth by investing in FTSE 100 shares and
medium and small companies.
Minimum investment: Monthly £50, lump sum £1,000.
Investment split: Minimum of 60 per cent in FTSE 100
shares, 40 per cent in medium and small companies.
Isa link: Yes.
Pep transfer: Yes.
Charges: Initial 5.25 per cent, annual 1.5 per cent.
Commission: Initial 3 per cent, renewal 0.5 per cent.
Tel: 08457 405405.
Steve Gaffney, Director, Moore Stephens Financial Services,
Roddy MacLeod, Partner, MacLeod IFA,
David Flowers, Director, Ronald Blue & Co
Suitability to market 5.0
Investment strategy 5.4
Past performance 6.4
Company's reputation 5.4
Product literature 6.0
Merrill Lynch's UK Dynamic growth fund is a unit trust that aims to
provide capital growth by investing in companies that are listed on the
FTSE 100 and UK small to medium sized companies that have the potential to
Assessing how the fund fits into the market, Gaffney says: “It falls into
the UK growth sector. How dynamic the fund turns out to be will only be
seen with time. However, it is a large sector with some excellent funds and
it will have a lot to do to make its mark.”
MacLeod thinks it fits into the market well and Flowers says: “It is a good
fit for those who are concerned at the risk of trying to select a value or
a growth orientated style of investment.”
Moving on to the type of client the fund is suitable for, MacLeod says:
“This fund is suitable for clients who are averse to direct exposure to the
UK markets that are fairly volatile at the moment.” Flowers says: “It is
suitable for a growth orientated investor without a specific commitment to
any one investment style.”
Gaffney says: “A middle to higher risk client who is looking to achieve
capital growth within effectively the UK markets. Cpaital growth is the
priority and the fund is able to take an aggressive stance to achieve this
– in other words, exposure to the technology sector. Clients should be able
to take a longer term view – five to ten years and be prepared for periods
Examining the marketing opportunities the fund is likely to provide,
MacLeod thinks there will be limited marketing opportunities. Gaffney says:
“I do not believe the fund will have maximum appeal. It may be of interest
to a small number of selective clients who would be attracted to its
flexibility and potential exposure to high-growth areas.”
Flowers says: “It is a different growth unit trust and presents a simple
alternative – and a cheaper one – to a fund of funds approach.”
Highlighting the main useful features and strong points of the fund,
Flowers says: “Not being held to one particular style of investing. This
should enable Merrill Lynch to avoid having to detail an art of fashion
investment style from time to time.”
MacLeod thinks the strong point of the fund is that the fairly high level
of growth is guar