Me alegraría infinito que acertaras en tu apuesta. Llevo tiempo valorando hacer otra aportación .... Hice una cuando acumulaba una perdida anual del 6%. No pensaba que fuera a bajar mucho más en ese momento pero me confundí. Me estoy planteando hacer otra. En realidad es la mejor forma de hacerlo para mi .... si baja, metes.... si baja más, metes más .... y cuando empiece a subir una aportación más .... ..... pero para esto cada uno tiene su estrategia 😜
Merian Global Investors is a trading name of Merian Global Investors (UK) Limited. Authorised and regulated by the Financial Conduct Authority
with FCA register number 171847. Registered in England & Wales under number 02949554. Registered office: Millennium Bridge House,
2 Lambeth Hill, London, EC4P 4WR, United Kingdom.
Merian Global Investors (UK) Limited
Millennium Bridge House
2 Lambeth Hill
The art and science of investingTM
Wednesday 20th March 2019
We have received your complaint in which you raised concerns regarding the performance of the
Merian Global Equity Absolute Return Fund (“the Fund”).
Performance of the Merian Global Equity Absolute Return Fund (ISIN: IE00BLP5S460)
The Investment Objective of the Fund is capital appreciation while closely controlling risk. The Fund
aims to deliver absolute returns (above zero performance, irrespective of market conditions) over
rolling 12 month periods.
During 2018 the Fund produced a negative return of -4.6%. The five year cumulative performance
of the Fund as at 28th February 2019 was 6.5%. Whilst past performance is not a guide to future
performance, we believe that over the profile of a typical investor the Fund has been successful in
achieving its Investment Objective.
The main reason for the underperformance of the fund in 2018 was the instability of company
shares or equities markets during the year. The equities market was characterised in 2018 by sharp
changes in investors’ risk appetite and sentiment. These market changes were driven by shifts in
macroeconomic conditions, as a result of central bank policy and international trade conditions.
The US Federal Reserve’s policy of increasing interest rates in 2018 damaged market sentiment, as
did the threat of a trade war between the US and China.
Investor sentiment in general deteriorated during the year, but there were also sudden, sharp
changes in investors’ appetite for risk. At times investors were very pessimistic (risk off), and at other
times they showed bursts of optimism (risk on). The instability of markets proved a very challenging
environment for the fund.
By way of example, the latter stages of the second quarter of 2018 proved challenging as it
became dominated by a sequence of sharp risk-off moves, as investors became more fearful and
sought to avoid or reduce their risk exposure: first Europe in April followed by Japan in May, and
finally Asia in June. By the time all regions were positioned for a risk-off environment in July, a sharp
risk-on move took place at the end of that month. That proved short lived, and markets resumed a
risk-off sentiment during August, just for it to bounce back up again strongly in mid-September. The
Indecisive, changeable nature of the market during 2018 proved difficult for the fund to navigate.
The fund has five diversified criteria it uses to select stocks, and these are called dynamic valuation,
company management, market dynamics, sustainable growth and analyst sentiment. Over the
course of the year, dynamic valuation, company management and market dynamics contributed
negatively to the fund’s overall performance. However, sustainable growth and analyst sentiment
made a positive contribution to the fund’s overall performance during the year.
For example, the dynamic valuation criterion was one of those that performed negatively during
the year. This was the case even though the fund was largely correctly positioned away from risk-on
throughout most of the period, and therefore avoided sizeable selloffs in value stocks (those
measured by investors to be relatively cheap). The fund’s dynamic valuation criterion also includes
a quality component, that is, a way of selecting stocks according to the relative strength of
companies’ balance sheets. This is included to reduce risk. However, during 2018 many investors
preferred low volatility and dividend yield (that is, stocks whose prices are more stable, and stocks
that pay relatively large dividends in relation to their share prices) to traditional balance sheet
strength as their source of safe haven assets during episodes of heightened market volatility.
As a consequence of the pronounced shifts in the nature of equities markets during the year, a
series of asset allocation changes were set in motion in the fund, to reposition it for the challenging
The underperformance of the fund in 2018 was unusual compared to its long-term track record.
However, it falls within the risk expectations of the fund.
We would like to take this opportunity to reiterate that the price of shares in the Fund may fall as
well as rise and that past performance is not a guide to future performance. Within the Prospectus
we define the profile of a typical investor into the Fund as one having a long term investment
horizon and who is prepared to accept a moderate level of volatility. Within the Fund’s Key Investor
Information Document (“KIID”) we recommend a holding period of at least five years.
We strongly recommend that all investors take independent financial advice, particularly if they are
concerned with the performance of their investments and we hope that this letter adequately
addresses the points raised in your email. However, should you have any further questions, please
do not hesitate to get in touch or contact your financial advisor for further information.
Anthony Goldstone - Compliance Officer