New Mercury service targets wealthy clients
A FUND management service for investors with a minimum of US$250,000 has been launched by Mercury Asset Management, the group with more than $100 billion under management.
The Offshore Managed Fund Service will aim to have fund performance in the top half of a chosen sector continuously.
If Mercury's own performance is lagging, then it will use third-party funds.
It will offer three core portfolios: capital preservation, balance and growth.
The investment vehicle will be funds because of the scope for diversification, liquidity, cost containment and specialist management.
Investors using the discretionary management service will have exposure to all asset classes.
Alternatively, investors can determine their own investment strategy by requesting a tailored portfolio.
Director of private investors John Gatehouse said: 'Funds used will be chosen from the offshore stable as well as from funds managed by other fund-management houses. The selection is dependent on the asset allocation requirements of the client.
'Using funds has great benefits as it enables us to make changes very easily in response to market conditions or personal circumstances and gives a good spread in terms of risk.' Where third-party funds are chosen, only recognised international fund management houses whose fund strategy and charges are transparent will be accepted.
The alternative fund at the time of purchase must be valued at $10 million or above.
Front-end charges will be waived on Mercury funds and, where possible, on third-party funds. There will be an annual management fee of 0.75 per cent.