The fund, which will have an initial seed capital of €15m (£11.6m, $16.7m), will address long-term investment objectives by diversifying assets and providing regular income; investing primarily in investment grade bonds, local bonds, other debt securities, money market instruments and equities.
Investment focus
It may invest up to 35% of the fund’s assets in securities and money market instruments that are issued or guaranteed by any single EU member state, or by public international bodies where one or more member states belong.
Up to 15% of the fund’s assets may be invested in local corporate issues of debt securities. It will also invest directly in local and international shares, as wellas other bond and equity funds.
The day-to-day investment management of the sub-fund has been delegated to Jesmond Mizzi Financial Advisors.
Spread investments
Mizzi advised that the fund is aimed at investors who want to spread their investments in local government stocks, local bonds, and equities, as well as international bonds and shares. As local investors prefer investing mainly in bonds, the fund will invest predominately in such securities.
However, the fund can also invest up to 30% of the assets in local and international equities.
Investors can either invest a lump sum or make regular payments into the fund, which started trading on Monday, and will receive a quarterly income.
The Merill Sicav is licensed as a collective investment scheme by the Malta Financial Services Authority (MFSA).
