Martin Currie plans to restructure its $1.4m (£713,000) Pan European Equity Sicav into a high alpha fund.
Subject to regulatory and shareholder approval, from February 2007 the fund, managed by Dino Fuschillo, will be modelled on the long-only side of the group’s European Absolute Return hedge fund, also run by Fuschillo.
Andy Sowerby, managing director of marketing, distribution and product management at Martin Currie, says unlike the existing portfolio, the new fund will be unconstrained by benchmark to allow Fuschillo to invest solely in his best ideas.
He adds: “The number of stocks will reduce from the existing 50 to 30 and the portfolio will have no tracking error constraints. It will just be a portfolio of his 30 best ideas.”
The fund will be the group’s first European high-alpha product and will be available to British investors, given its UK distributor tax status.
In addition to restructuring the Pan European Equity fund, Martin Currie is seeking approval to rename its Pan European Midcap Sicav as Pan European Opportunities. This, Sowerby says, is so that the name better reflects the underlying portfolio.
The group has also announced its intention to launch a Sicav mirror of its existing £141m Asia Pacific fund, managed by Jason McCay and Richard Evans.
The fund is set to launch on March 5, 2007, with a fixed one-week offer period.