Merchant House plans for Ucits fund launch

Merchant House Group has confirmed plans for the launch of a further Ucits fund, after closing four products earlier this year.

According to its half-yearly report, the group’s asset management division has endured “a difficult period” as a result of the suspension of the parent group’s shares and weak stock markets.

Four Ucits funds it liquidated were made after redemptions resulted in uneconomic fund sizes.

The new fund has recently received approval by the Central Bank of Ireland and is expected to launch “in the near future”.

The group claims that while assets under management have fallen in the Ucits business, revenues “have not as yet been adversely affected but new funds will have to be launched if this is to be sustained”.

The asset management business currently has total assets under management of approximately $25m and has further plans to launch additional funds.

The group also reported a slowdown in sales of structured products after it was forced to change the custodian, as Pritchard Stockbrokers was placed in administration.

According to Merchant Houser, the UK retail business suffered a difficult six months and was likely to continue in the short-term. However, it has seen continuing sales as a result of offshore marketingm and has appointed a new sales team to make further expansion.