BlueCrest Ucits fund to be liquidated due to tracking error

Merrill Lynch Investment Solutions surprised shareholders of the BlueTrend Ucits fund last week by revealing its intent to liquidate the fund - which is up 11.69% so far this year - citing an expected widening in the tracking error. Sources close to the situation suggest the widening would result from opportunities in commodities and fixed-income markets that the flagship BlueTrend fund will seek to capitalise on, which can't be fully replicated within the constraints of a Ucits fund.

The fund,