Merrill Lynch Investment Managers has introduced the Merrill Lynch UK dynamic fund.
The fund is a unit trust aimed at investors who are looking for a medium risk product that can be used as a core holding for their portfolio and which gives them exposure to the UK sector. UK dynamic is an onshore version of the Mercury offshore sterling trust UK fund.
At least 60 per cent of the UK dynamic fund will invest in companies in the FTSE 100 index, with the remaining 40 per cent of the fund investing in small to medium sized UK companies that show potential growth.
UK dynamic joins the growing band of themed funds that aim to identify and take advantage of UK companies that show potential growth. These include products such as the Rowan dynamic theme fund and the M&G innovator fund. However UK dynamic offers little that makes it stand out from the opposition.
According to Standard & Poors the Mercury offshore sterling trust fund is ranked 1 out of 101 funds, based on £1,000 invested on a bid-to-bid basis with gross income reinvested over three years to October 16, 2000.