EXPENSIVE AND ATTRACTIVE TRUSTS
Stockbroking firm Killik & Co yesterday listed three listed investment trusts that it finds expensive and three that look attractive from a discount perspective. The expensive trusts are Better Capital, Polar Capital Technology and 3i Infrastructure while Utilico Emerging Markets, Acorn Income Fund and BlackRock New Energy are attractive. In terms of Better Capital, which trades at a 14 per cent premium, Killik believes that there will be better times to add to positions. The 16 per cent discount on the BlackRock fund represents an attractive entry level.
FOUR AXA ROSENBERG FUNDS REVIEWED
Morningstar has placed the rating of four AXA Rosenberg funds under review after the specialist active global equity investment management firm admitted an error in its quant model, which went undetected for two years. While the AXA Rosenberg board is conducting a full review, the firm said in a letter to clients that founder Dr Barr Rosenberg has agreed to take a 30-day leave of absence and head of research Tom Mead will resign within one year. The four funds are AXA Rosenberg Europe, AXA Rosenberg American, AXA Rosenberg Japan, and AXA Rosenberg ex-Japan.
NEW MERRION ABSOLUTE RETURN FUND
Merrion Investment Managers announced yesterday that it has recruited a specialist long/short equity team to manage a new UCITS III European Absolute Return Fund. The fund is targeting an absolute return of 15-20 per cent per annum with annualised volatility of 7.5-10 per cent. It has been launched with $20m of initial investment.
Michael Nicol and Alistair McDonald, who have over 50 years of investment experience between them, will aim to detect mispriced company securities through firm-specific analysis.