Merrill Funds Lose Up To £16bn

10 years ago

Money.telegraph reports that Merrill Lynch Investment Managers (MLIM) is believed to have lost nearly £16m in pension funds last year, wiping nearly a quarter off their value.

According to FT Fund Management, MLIM's segregated pension fund business fell from £63.7bn to under £48bn in 2001. The firm has admitted that its institutional business has lost a further £3bn this year already.

Merrill Lynch is currently going through a bad time. The investment management business has lost clients and is being sued by others due to alleged poor investment performance and several key fund managers have left the firm in recent months.

The investment bank has just agreed to pay $100m in settlement following an intensive investigation by New York state attorney general Eliot Spitzer into claims that its analysts issued biased or overly optimistic research to investors. And there are now claims that there is a rift at the top of the organisation as chairman David Komansky and chief operating officer Stanley O'Neal are thought to have fallen out.

The Merrill bull appears to have temporarily lost its horns.

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