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Three new funds launched on BoAML platform

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Bank of America Merrill Lynch has launched three new funds, Perella Weinberg Partners Sustainable Resources Long-Short UCITS Fund, TT Financials UCITS Fund, and Westchester Merger Arbitrage UCITS Fund, as part of the company’s award-winning UCITS funds platform, Merrill Lynch Investment Solutions (MLIS).

The addition of these funds onto the MLIS platform takes the total number of funds to 14 with USD2 billion AUM raised in Europe since its inception. 

Led by Rod Parsley and Douglas Millett, the Perella Weinberg Partners Sustainable Resources Long-Short UCITS Fund employs a global long-short equity strategy focused on sustainable resources, principally energy, water, agriculture and the service and supply chain companies that support them.

Rod Parsley, Portfolio Manager, says, “Investors are looking for vehicles that allow them to capture the scarcity value of essential resources. Rather than investing directly in such commodities, the Perella Weinberg Partners Sustainable Resources Long-Short UCITS Fund seeks alpha opportunities in equity investments linked to scarce resources on the long side, while simultaneously investing in short opportunities that arise from regulatory and technological disruption in these sectors.” 

The investment team seeks to leverage a thematic, supply chain-driven approach coupled with a rigorous bottom-up fundamental research to identify mispriced assets in the marketplace.

As the first financials long-short strategy on the platform, the TT Financials UCITS Fund, led by portfolio manager Mark Eady, pursues a fundamental, bottom-up stock-picking approach with top-down systematic screening.

Donald Pepper, Investment Director, Hedge Funds at TT International commented: “The Global Financials sector has demonstrated the largest dispersion of pricing between individual stocks of any sector, providing excellent opportunity for generating positive returns in both down and up markets. Our strategy delivered returns in excess of 24 percent in 2008, for example. The opportunity in Global Financials is particularly attractive now.”

Offering additional flexibility and leverage to meet investors’ overall risk/return objective, the Westchester Merger Arbitrage UCITS Fund, led by Roy D. Behren and Michael T. Shannon, principally invests in publicly announced mergers, acquisitions, takeovers and other corporate reorganisations, with the goal of profiting from the timely completion of these transactions.

“Merger arbitrage can be a unique source of alpha in an investor’s portfolio,” says Roy Behren, president of Westchester Capital Management. “The strategy has historically provided attractive, stable, and uncorrelated returns in virtually all market environments. Cash-heavy balance sheets, readily available debt financing, low interest rates, and improving stock prices should all encourage deal-making and with it, merger arbitrage opportunities. The bottom line is that we expect to continue to be presented with attractive investment opportunities in the months and years ahead.”

Eric Personne, head of EMEA Fund Solutions at Bank of America Merrill Lynch said: “We’re excited to be launching three more high quality funds on our UCITS platform. The range and diversification of these funds highlights our ability to respond to market trends and satisfy investors’ appetite for new products that meet their investment needs. The various fund managers all have outstanding credentials and we’re exceptionally pleased to be partnering with such talented individuals.”

All three funds are sub-funds of MLIS, a regulated Luxembourg onshore vehicle, with protection for investors through the UCITS framework of rigorous risk, diversification, counterparty exposure, liquidity and eligible asset constraints. Processes relating to the running of the funds, including matters such as risk management, independent oversight and protection of assets, have been approved by the Luxembourg regulator.

The funds are available for sale to institutional and retail investors in the UK with a minimum investment size for the retail share classes as low as USD1,000.  Passporting to additional jurisdictions is currently in progress. The MLIS funds are not for sale to US persons.

Merrill Lynch Investment Solutions was recently recognised as the best UCITS platform at the prestigious European Fund of Hedge Funds Award 2010 and HFM Awards 2011.

 

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