Merill Sicav launch a High Income and a Global Equity Income Fund

Following the successful launch of the Merill SICAV and its first sub-fund, the Merill Total Return Income Fund which has now reached €22.4 million in assets under management, the company is about to introduce two new sub-funds – the Merill High Income Fund and the Merill Global Equity Income Fund.

The Merill Sicav is incorporated as an open-ended collective investment scheme, registered in Malta, qualifying as a Maltese UCITS in terms of the UCITS Directive, and licenced by the Malta Financial Services Authority. The new funds will also be self-managed by a team of professionals at Jesmond Mizzi Financial Advisors Ltd.

The Merill High Income Fund aims to provide a high overall yield with the potential for capital growth. The fund may invest all its assets in rated and unrated fixed income securities located anywhere in the world and may invest up to 60 per cent of the assets in units of collective investment schemes and exchange traded funds. The High Income Fund may invest to a limited ex- tent in equities, and products which qualify as transferable securities, but which are packaged around a number of underlying securities from which they derive their value. The fund may invest in emerging markets although it will focus on developed markets.

On the other hand, the main aim of the Merill Global Equity Income Fund is to achieve capital growth and income from a diversified portfolio of investments. The sub-fund will invest primarily in equity of companies spread across the globe and up to 60 per cent of the assets under management could be invested in units of collective investment schemes and exchange traded funds.

The Fund Manager has absolute discretion to decide the investment type, geographical area, economic sector or issuer of investments, subject to applicable restrictions. The fund may also invest, to a limited extent, in bonds and products which qualify as transferable securities. These are packaged around a number of underlying securities, from which they derive their value. The Fund will distribute any income generated from the portfolio on a quarterly basis, however it is important to keep in mind that this is subject to the discretion of the directors, who will decide whether to distribute such income or part of it. Any undistributed income will be reinvested back into the fund.

Both funds will be priced and will trade daily and are suitable as a medium to long term investment. Income will be paid on a quarterly basis. Investors can opt for a minimum lump sum investment of €2,500 or as a regular savings plan.

Jesmond Mizzi, a director of Merill Sicav, stated that “the funds are aimed at those investors who want to spread their investments in a diversified portfolio of various underlying assets including global high yield, investment grade bonds, international and local shares. Mr Mizzi also emphasised that it is important for investors to appreciate that these two new funds incorporate a full range of investment products which allow the funds to earn income from alternative sources of investments which is passed on to the investors on a quarterly basis. Now more than ever investors need to diversify into different asset classes to generate income but also to protect and enhance their capital.”

As an introductory offer, all investors may benefit from substantially reduced initial fees to purchase these two new Merill Funds. These initial fees are discounted to 1.25 per cent for all applications received until March 15.

Investors should keep in mind that the value of the funds and the income are not guaranteed and may fall as well as rise. Past performance is no guide to future performance.

Investments should be based on the details contained in the Prospectus and Key Investor Information Documents which can be obtained free of charge from Jesmond Mizzi Financial Advisors Limited of 67, Level 3, South Street Valletta, VLT 1105 or their other offices in Hamrun, Birkirkara or ta’ Xbiex.