Merian Global Equity Fund R GBP Acc

Global Growth

Update: 20 February 2020: Merian Global Equity placed under review
Full details can be found here.

Rated fund 2013-20. Avoids style bias to follow the money      

A past winner of Best Global Growth Fund in Money Observer’s annual fund awards, this fund has been overseen since 2004 by Ian Heslop, head of global equities at Merian Global Investors, with co-managers Amadeo Alentorn and Mike Servent. Rather than sticking to growth or value stocks, they use a variety of styles and follow multiple themes in their portfolio so that they are covering all the different investment styles that can outperform in different market conditions. This produces a highly diversified portfolio, which Heslop says has been very important in stabilising the returns that the fund has achieved over the longer term. The number of holdings has grown in the past year to around 575 from 450.

Put at its simplest, the managers look for the types of stocks that other investors are buying, such as tech or financials, and then look for the best companies they can buy to take advantage of these themes.

Companies are selected on the basis of five specific criteria: dynamic valuation or risk appetite; market dynamics and price movements; sustainable growth based on companies’ growth prospects; analyst sentiment to take account of company announcements; and company managements and their use of capital. These are considered in the context of the ‘temperature of the market’.

However, Heslop stresses that in seeking to determine the current market environment they are not making any forecasts. Instead, they are looking to ‘follow the money’, trying to understand the type of stocks that will outperform. It is an approach that recognises the cyclicality of investment processes and adjusts exposures to take advantage of prevailing market conditions.

Narrative and ratings content all as of 01 January 2020.

See all Money Observer rated funds
Name
Merian Global Equity Fund R GBP Acc
Manager
Merian Investment Management Limited
Type
Open Ended Investment Company
ISIN
GB00B1XG9821
Sector
Global
Launched
09/01/2013
OCF
1 %
Risk Rating
3
3 Year Sharpe
0.44
3 Year Alpha
-1.78
Yield
0.8 %
Benchmark
MSCI World NR USD
The Fund seeks to achieve capital growth by delivering a return, net of fees, greater than that of the MSCI World Index with net dividends reinvested over rolling 3 year periods. The fund primarily invests (at least 70%) in a diversified portfolio of equities in developed markets globally. The fund may also invest in other transferable securities, units in collective investment schemes (including those managed or operated by the ACD or an associate of the ACD), warrants, money market instruments, deposits and derivatives, and may hold cash.
Holding %
Microsoft Corp 3.91 %
Apple Inc 3.71 %
Amazon.com Inc 1.85 %
Procter & Gamble Co 1.32 %
Verizon Communications Inc 1.30 %
Roche Holding AG Dividend Right Cert. 1.29 %
Visa Inc Class A 1.27 %
Merck & Co Inc 1.17 %
Johnson & Johnson 1.09 %
Pfizer Inc 1.08 %
Region %
United States 64.38 %
Eurozone 9.12 %
Japan 8.42 %
Europe - ex Euro 6.65 %
Sector %
Technology 20.31 %
Healthcare 18.34 %
Financial Services 17.55 %
Consumer Cyclical 7.61 %
Industrials 7.35 %
Consumer Defensive 7.25 %
Communication Services 6.72 %
Utilities 6.55 %
Name
Merian Investment Management Limited
Address
EC4P 4GG, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Ian Heslop
Joined 12/31/2004

Ian joined Merian in 2000 and is head of global equities. He manages a range of hedge and retail funds and segregated mandates, including market neutral and long only funds. Ian boasts more than 20 years of investment experience and the team has won numerous awards for its funds. Prior to joining the business, Ian was a UK quantitative fund manager at Barclays Global Investors. He holds an MA in chemistry from the University of Oxford and a PhD in medicinal chemistry, University of Edinburgh. He is an associate of the Society of Investment Professionals.

Amadeo Alentorn
Joined 12/31/2004

Amadeo joined Merian in 2005 and is a fund manager and head of research in the global equity team. Prior to joining the business he developed simulation models for systemic and liquidity risk for the Financial Stability Group at the Bank of England, and worked as a software developer for CAD systems and for robotic applications. He holds a BEng in robotics from the University of Plymouth, an MSc in computer science, and a PhD in computational finance from the University of Essex. He is a CFA charterholder.

Mike Servent
Joined 12/31/2004

Mike joined Merian in 2004 and co-manages a range of funds within the global equity team. He joined from Barra International where he was a senior consultant specialising in the implementation of multi asset-class risk systems. Prior to this he spent five years with COR Risk Solutions, which developed the optimisation, back-testing and modelling software currently used by the global equity team. Mike has an MA in physics from the University of Oxford.

Data provided by Morningstar.

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