Financial Advisor articles from June 2005

Financial Advisor archives from June 2005

CPPI condemned as poor value.(constant proportion portfolio insurance)(Brief Article)
June 13, 2005... Constant proportion portfolio insurance is simply a money-making scheme for those that provide it, according to Neil Lovatt, marketing director at Scottish Life. His warning comes on the back of a report by actuarial company AKG which...

Currie adds new names to research.(Martin Currie Inc.)(Brief Article)
June 13, 2005... Martin Currie has bulked up its research team in order to enhance its fund managers' investment decisions. Chris Butler has been promoted to lead the team of sector managers after working with the company since 1989. He will continue to...

New Star goes on distribution push.
June 13, 2005... New Star is launching a campaign for distribution funds as an alternative to with profits to attract disenchanted life fund investors. Despite research from companies such as Merrill Lynch showing equity markets having risen more than 26...

DWS gives warning over UK valuations.(fund management)(Brief Article)
June 13, 2005... Managers need to be more selective about UK companies as valuations are looking stretched, according to Graham Ashby. Mr Ashby, who manages the AGBP80.3m DWS Equity Income Plus fund, said that on a five-year horizon, levels were looking "a...

SGAM brings US Relative Value to UK.(SG Asset Management)(Brief Article)
June 13, 2005... SG Asset Management has opened its Luxembourg-domiciled US Relative Value fund to sterling-based investors. SGAM said the move reflected demand from UK investors for the AGBP1.37bn fund, which already had distributor status but could only...

Asset allocators targeted by SGAM US Concentrated.(SGS Asset Management)(Brief Article)
June 13, 2005... SG Asset Management is targeting portfolio planners and asset allocators with its US Concentrated Core fund. This is one of a batch the manager is in the process of bringing to the UK. Run by Stephen Burlingame, managing director of US...

Adnitor launches IFA internet support service.(Independent Financial Adviser.)(Brief Article)
June 13, 2005... Financial consultancy Adnitor has launched a web-based service to support IFAs selecting a platform. The Whichplatform.com site will be regularly updated from advisers on their assessment of the progress made by wrap and platform providers....

HSBC outsources US fund, jilting manager.
June 13, 2005... HSBC American Growth fund manager Thomas D'Auria has been removed to make way for large cap value specialist Davis Advisers. HSBC Investments said New York-based Mr D'Auria, who was a vice-president of the company, had been let go because...

Property funds target Europe opportunities.(Belgravia launches real estate investments)
June 13, 2005... A raft of property funds is being launched this summer with offerings from Belgravia, Rock Capital and Arc. Boutique property asset manager Belgravia is set to launch a European Commercial Property fund by the end of September. The group is...

Eight respond to SRI definitions initiative.(fund management regulations)(Brief Article)
June 13, 2005... Eight major fund managers have responded to European Commission initiatives to harmonise definitions of socially responsible investment, as part of its drive to promote better transparency. The eight -- CIS, F&C, Friends Provident,...

Funds face closure in Ucits proposals.(investment funds)
June 13, 2005... Ucits funds investing in smaller companies and emerging markets may be forced to restructure, while some property vehicles may face closure under proposed European regulatory reforms. The impact of recommendations by the Committee of...

UK will ride out oil hike -- Abbey.(Brief Article)
June 13, 2005... The UK economy will remain robust despite the threat of higher oil prices and continued consumer inactivity, according to Abbey. John Kelly, head of client investment for Abbey, said because the UK was an oil producer, this offered it some...

Aifa appointment runs into criticism.(Association of Independent Financial Advisers.)(Brief Article)
June 13, 2005... Chris Cummings, newly appointed director general of Aifa, has denied that his lack of investment experience could be a handicap. Cornwall-based IFA Worldwide Financial Planning had reacted adversely to the announcement that the mortgage...

Japan's equities show promise say managers.
June 13, 2005... Now is the time to enter Japanese equities, according to contrarian fund managers, as equity yields beat those of 10-year government bonds. Managers said improving economic conditions in the country were creating increasingly favourable...

Property experts look to E Europe land grab.(property investments)(Brief Article)
June 13, 2005... Central and Eastern Europe will become the main focus for property investors over the next two years, according to Investec Private Bank. In a survey of property professionals, 72 per cent of respondents said they would increase exposure to...

Malaysia and Singapore key drivers for Aberdeen.(Aberdeen International Asian Smaller Companies fund)(Brief Article)
June 13, 2005... Malaysia and Singapore have been key drivers in the first year of the AGBP86.5m Aberdeen International Asian Smaller Companies fund. The Dublin-listed fund has been a strong performer over the last year rising by 29.4 per cent, compared...

Performance.(fund management)
June 13, 2005... Insight's Asia Pacific fund tops TrustNet's multi-manager Global sector this month. The AGBP143m fund returned 30.27 per cent over a year, pushing the AGBP4.3m Credit Suisse Multi-Manager Emerging Markets fund into second place. The CSAM...

Old Mutual small cap looks to buy British.(markets)
June 13, 2005... Old Mutual's smaller companies fund is targeting uniquely British stocks to stay defensive. With small caps trading at a premium to large caps Daniel Nickols, manager of the AGBP239.8m Old Mutual UK Select Smaller Companies fund, has...

Newton Income braces for falling UK market.
June 13, 2005... Storm clouds are gathering according to Glen Pratt, manager of the AGBP1bn Newton Income fund. Despite several high-profile managers such as New Star's Patrick Evershed citing a positive market for selective smaller company investment, Mr...

Bailey fund passes the AGBP100m level.(T Bailey Growth)(Brief Article)
June 13, 2005... The T Bailey Growth fund has passed the AGBP100m mark, investing the extra money into two UK Growth funds. Richard Martin and Jason Britton manage the fund, which stood at AGBP101m on 3 June. The fund had risen by 11.2 per cent in the three...

Artemis quashes rumours.(Artemis Fund Managers)(Brief Article)
June 13, 2005... Artemis has rebutted market speculation that its Global Growth fund manager, is to be be handed the mandate for its AGBP5.8m American Growth fund. There has been mounting speculation that Peter Saacke, who turned around performance in the...

Bull market charging at investors.(stock markets)(Brief Article)
June 13, 2005... Many retail investors have been unaware of a stealth bull market charging at investors over the past two years, according to Merrill Lynch Investment Managers. A survey of retail investors, conducted by market research company Mori...

Buy & sell.(contract of Aberdeen Asia-Pacific Income Fund and Asia-Pacific)(Solus Eastern Enterprise and Solus)(Henderson Pacific fund )(Brief Article)
June 13, 2005... Aberdeen Asia-Pacific fund Patrick Armstrong, manager of Insight's AGBP143m Asia Pacific retail fund, bought Aberdeen's AGBP79.4m Asia-Pacific and Morgan Stanley's Asian Property fund. Solus Eastern Enterprise fund Gary Potter, joint head...

US value set to suffer as Fed raises base rate.
June 13, 2005... US markets could end the year neutral amid poor economic fundamentals, leaving investors' best options in large-cap growth stocks. This is the view of ABN Amro's US subsidiary Montag & Caldwell which manages its US Equity Growth fund. The...

Needle sees improving fortunes for US ahead.(Threadneedle)(Brief Article)
June 13, 2005... Threadneedle has increased its forecast for the US on the back of improving sentiment and profits growth. The asset manager has shifted its position to the US from underweight to neutral. This comes despite viewing the consumer as...

Consolidations boost US small-caps claims F&C.(Brief Article)
June 13, 2005... US small-caps returned to favour last month after a period of consolidations, according to F&C. Robert Siddles, manager of the AGBP60.8m F&C US Smaller Companies trust, said that in May the S&P500 index rose in sterling terms by 7.5 per...

No votes leave industry downbeat over Europe.(investment management)
June 13, 2005... The message from investment economists over Europe is bleak amid forecasts of a slow death for the euro. Following France and Holland's EU constitution rejection, Peter Bickley, chief economist for Tilney Investment Management, said one of...

Fidelity warns over concentration threat.(Fidelity Investments)(Brief Article)
June 13, 2005... Fidelity Investments is concerned that index concentration will become a greater issue over the next few years. Sanjeev Shah, manager of the AGBP238.5m UK Aggressive fund, said that as international businesses consolidated market listings...

Aberdeen to switch UK Emerging to be an Oeic.(Aberdeen Trust PLC)
June 13, 2005... Aberdeen is set to convert its AGBP106.9m UK Emerging Companies unit trust to an Oeic. The move, which is subject to unitholder approval, will see investors able to switch more easily between sub-funds in the Oeic, according to Aberdeen....

SPG denies Oakeshott Sipp problems claim.(Sipp Provider Group)
June 13, 2005... The Sipp Provider Group has responded to claims that the self-invested personal pension market will be flooded with residential and overseas property investments after A-day. From 6 April, new rules come in allowing Sipp investments to...

ScotEq rolls out a stakeholder option.(Scottish Equitable PLC)(Brief Article)
June 13, 2005... Scottish Equitable has introduced a stakeholder option on its individual pension products with a revamped charging structure. The product range will include a stakeholder plan with a maximum annual management charge of 1.5 per cent in its...

Advice firm offers asset allocation.(Steve Williams and David Dodd set up Cormorant Capital Strategies)(Brief Article)
June 13, 2005... Tailored asset allocation strategies for client portfolios are being offered through a new company. IFAs Steve Williams and David Dodd have set up Cormorant Capital Strategies to help advisers offering this service. They previously worked...

Bureau backs FSA move to outlaw 'disastrous delays'.(Annuity Bureau, Financial Services Act)(Brief Article)
June 13, 2005... The Annuity Bureau has welcomed the FSA's efforts to tackle disastrous delays in the administration of annuities. The bureau responded to last month's speech by David Strachan, the regulator's insurance sector leader, who said the transfer...

Gartmore mulls options for split rollover vehicle.(Gartmore Fund Managers)(Gartmore SNT PLC)(Split Capital Investment Trust of United Kingdom)
June 13, 2005... The board of the AGBP103.8m Gartmore SNT split cap trust is considering options for a rollover vehicle later this year. The trust is due to wind up on 30 September and the board is reviewing a number of tax efficient alternatives to allow...

Structured product roll outs behind 2004 levels.(Brief Article)
June 13, 2005... The structured product market experienced a typical seasonal slump in May. According to research by website Structured Retail Products the market saw a 30 per cent drop in the number of products being issued from April to May, although the...

Medical trust agrees deal for a dozen properties.(Medical Property)(Brief Article)
June 13, 2005... The Medical Property trust is looking to increase its income yield with the acquisition of a healthcare portfolio. The AGBP400m trust has agreed terms to buy 12 properties, four of which are in development, for AGBP47.25m from Apollo...

Scott revamps to wake up 'dormant' F&C fund.(Ted Scott)(F&C Income Growth Investment Trust )
June 13, 2005... Ted Scott's new Growth & Income mandate at F&C Asset Management will see a raft of structural and thematic changes, according to the manager. Last week, Mr Scott, head of the Stewardship funds at F&C and rated AAA by Citywire, was handed...

F&C's Gaiser ups B-rated bonds to raise fund's risk.
June 13, 2005... F&C's AGBP239.4m Strategic Bond fund has been targeting B-rated issues as part of a strategic shift to raise the risk on the fund. Manager Roman Gaiser, who works with Fatima Luis on F&C's bond desk, has been spending cash to buy B-rated...

Give plans time to settle warns Aifa.(Association of Independent Financial Advisors)(Brief Article)
June 13, 2005... AIFA has called for a bedding-down period for the FSA's menu system ahead of the ABI's paper into commission payments. The Association of British Insurers has urged for a review of commission payment structures and indemnity insurance. But...

Dirt trampled down on an old favourite.(independent financial advisors)(Brief Article)
June 13, 2005... The majority of IFAs would not consider using with profits for long-term investment requirements, according to the European arm of insurance giant the Hartford. Research carried out by Hartford Life said 85 per cent of IFAs would no longer...

Letter highlights Reits tax concerns.(real estate investment trusts)
June 13, 2005... While the Association of Investment Trust Companies and the Investment Management Association have given their backing for a smooth introduction of real estate investment trusts, it and the Association of Property Unit Trusts, have voiced...

Hedge fund managers contest 'bubble' claims.
June 13, 2005... Man Investments has defended the hedge fund industry against bubble accusations. As the FSA puts the final touches to its two discussion papers on hedge funds, big guns on both sides of the Atlantic are firing salvos at the sector. ...

Henderson releases climate report.
June 13, 2005... With the Gleneagles G8 summit preparing to debate climate change, Henderson has published a groundbreaking report on this issue for investors. The Carbon 100 report looks at the global warming-linked carbon emissions of FTSE100 companies,...

Everyone has to have one vice (fund).(Richard Craven)(Brief Article)
June 13, 2005... Richard Craven, number one banana at the acquisitive and ambitious company The Money Portal, has made enemies. Well, you do not get to be top of the tree in Stanmore -- north of north London, if you can't find it on the map -- where the company...

Maybe I should get out a bit more.(bull market at Gartmore)(Brief Article)
June 13, 2005... Diary is not often invited out, preferring instead to study data analysis, global market statistics and read books on investing by Anthony Bolton. But when invited by Gartmore to attend the glitzy Destiny's Child concert, even Diary had to get...

Cutting back the biggest blooms.(Brief Article)
June 13, 2005... "New legislation cuts inconsiderate hedge owners down to size." When we saw this press announcement Diary thought it was directed at the subject of another recent posting, on the earnings of top hedge fund managers last year. Edward Lampert of...

An issue not to be skirt-ed around.(skirt length theory)(Brief Article)
June 13, 2005... Now this week's Investopedia Term of the Week is one close to Diary's heart: skirt length theory. The idea is that skirt lengths are a predictor of the stock market direction. According to the theory, if skirts are short, it means the markets...

South Korea is on verge of being classed 'developed'.
June 13, 2005... South Korea's rapidly maturing economy will class it as a developed nation within two years, says Baring Asset Management. According to Henry Chan, manager of Baring's AGBP136m Baring Korea trust, many of the factors which once classed...

In search of managers with the you-know-what touch.(Alan Burrows)(Midas Capital Partners Limited)(Interview)
June 13, 2005... Investment Adviser: Why do you think your two key funds, the AGBP52.9m Midas Balanced Income and the AGBP49.5m Balanced Growth funds, have outperformed their rivals? Alan Burrows: It is down to good stock selection and good manager...

Goldilocks and bear markets.
June 13, 2005... Goldilocks hasn't been talked of quite so much since she did that bit of breaking and entering, in the process wrecking the breakfasts of a hard-working family of three. Over recent weeks the Financial Times, that venerable organ of Dow Jones...

Global bonds may go lower says Investec.(Brief Article)
June 13, 2005... Global bond yields -- close to a 15-year low -- could fall further, according to Investec Asset Management. John Stopford, head of fixed income of Investec, said: "I expect US inflation to rise towards 2.5 per cent this year. At these...

M&A activity is set to rise says Framlington.(management of Framlington Innovative Growth trust)(Brief Article)
June 13, 2005... Framlington is expecting a flourish of UK corporate activity later this year, adding the cherry to its Innovative Growth trust portfolio. Brian Watson, manager of the AGBP159m Framlington Innovative Growth trust, said the market had already...

Trying not to get fooled once again.(securities analysis)
June 13, 2005... Investors are back to finding reasons not to buy UK equities again. Profit warnings, weaker consumer spending, dubious earnings forecasts, high oil prices and a flaccid housing market are all depressing market sentiment. Where enthusiasm...

Plethora of small funds told to get act together.(Brief Article)
June 13, 2005... Unit trusts should follow the lead of investment trusts in merging the high number of smaller funds, according to IFA Blackadders. Colin Pritchard, portfolio manager for Dundee-based Blackadders, said there were too many small unit trusts...

Behavioural stance works for JPM US.(proprietary behavioural finance model )
June 13, 2005... Quite confusingly, JPMorgan has three separate investment teams managing their various US funds. One team has had a long term value tilt to the investment style, another team uses a dividend discount model across all markets and finally you...

Bond bulls may be talking bullocks.
June 13, 2005... Can bond yields get much lower in the major government bond markets ? The example of Japan, where 10-year government paper offers investors an eye-wateringly thin 1.2 per cent yield to maturity, suggests they can. But Japan has also been the...

In financial advisers we trust.
June 13, 2005... I say this well aware that it is tantamount to teaching your grandmother how to suck eggs, but I believe it is nonetheless worthwhile hammering the message home: financial planning is not about products, it is about people. So when it...

Getting ready for sterling to fall from grace.(purchasing power parity )
June 13, 2005... Foreign exchange markets seem to delight in confounding expectations. If there was a consensus view this year, it was that the massive US trade deficit would continue to weigh on the dollar. Instead, it is the euro that has taken a beating. ...

The way through the hedge fund maze.
June 13, 2005... Few portfolio managers can have failed to notice the impact of equity market volatility on the performance of their clients' portfolios. This can be painful and lead to a perception that portfolio gains are temporary. Bond returns are somewhat...

Answering a taxing question.
June 13, 2005... The three major taxes that can all be mitigated by tax-efficient investing are income tax, capital gains tax and inheritance tax. Not everyone is interested in mitigating tax. People vary wildly in their attitudes from those with a total...

Business resilient as interest rates peak.(Brief Article)
June 13, 2005... Growing expectations of upcoming interest rate cuts have been allaying fears of a retail slowdown, according to Rensburg Fund Management. While Rensburg has been anxious to touch base with retailers held in its portfolios, to ensure they...

Wrapping up the affluent market.(Investment management)
June 13, 2005... The high net-worth investor has traditionally been seen as the holy grail of financial planning, with many advisers wishing to move their practices into this lucrative segment of the market. The reality, however, is that the true high net-worth...

A case of home and away for property investments.
June 13, 2005... Increasing numbers of investors and savers are putting commercial property into their investment portfolios or self-invested personal pensions. It is easy to see why: commercial property, with its income-generating characteristics, is like a...

Currency is key to the sector.
June 13, 2005... In a climate of slowing global growth, the continued economic expansion of China, and to a lesser degree India, is bolstering global markets. The gross domestic product of China is forecast to grow at 9 per cent and India at 7 per cent...

Small can be bountiful.(fund performance)
June 13, 2005... The Equity Asia Pacific sector has proved somewhat of a rollercoaster ride for investors who have had the grit to stick with the sector. To illustrate, mean returns in the year to April 2005 were 3.31 per cent, in the year to April 2004...

Manager Comment - Andrew Gillan.
June 13, 2005... The Aberdeen team that works on the St James's Place account is 10 strong, and headed by Hugh Young and Peter Hames. We are all based in Singapore. We also have three more fund managers who are based in Tokyo who deal with the Japanese equity...

Back to basics for complex investing.
June 13, 2005... There are few who do not believe that depolarisation will change the market forever. Its introduction will have a huge impact on how high net- worth clients seek advice and how we all need to conduct future business. It is hard to predict...

Asia Pacific funds stay close together.
June 13, 2005... A spot-on macroeconomic view, relatively lower reliance on consumer cyclicals and a heavier underweight in Japan has separated the men from the boys in the handful of Equity Asia Pacific sector funds, according to FT Funds Rating. When it...

Japan's recovery is too slow to put your money on.
June 13, 2005... If you could choose between investing in two similar sized countries on the same valuation, with the vital statistics as outlined, which would you prefer? Usually such questions are cheap sales tricks, where anyone who says B admits they...

Moving to avoid any surprise, surprise.(investment management)
June 13, 2005... A favourite theme running through investor's minds when they meet with their financial advisers is to discuss the importance of preservation of wealth, rather than the historic desire of investing for growth. Certainly the 20-year period up...

BDT builds on Japanese base.(Invest Funds)
June 13, 2005... Building on the success of its smaller companies offering, BDT Invest launched a niche fund, the Japanese Focus, on 1 June. The new focus fund falls within BDT Invest Funds, an open-ended umbrella-type investment company, and aims to...

Managers dispute over bond bubble bursting.
June 13, 2005... Leading bond fund managers are in dispute as to whether the bond bubble is bursting. Paul Brain, director of fixed income at Newton, warned the credit market could worsen, despite the bond bubble having already burst. He said following...

'Business as usual' for F&C after losses.(Foreign & Colonial)(Brief Article)
June 13, 2005... Foreign & Colonial has insisted it will be business as usual despite losing a AGBP22bn Resolution Life mandate. Resolution Life, specialist investor in closed life assurance funds, is to merge with Britannic to create the UK's largest...

Always the bridesmaid, but never the bride.(St James's Place Far East unit trust )
June 13, 2005... The AGBP160.1m St James's Place Far East unit trust was launched on 1 January 1992. It has been run on behalf of St James's Place by Hugh Young, managing director of Aberdeen Asset Management's Far East division, since it took over from...

Painting by numbers pays off for cautious Mondrian.(Lincoln Emerging Markets trust)
June 13, 2005... The AGBP41m Lincoln Emerging Markets trust was launched on 4 June 2004 and has since outperformed its sector, Global Emerging Markets, by nearly 8 percentage points. The fund, run by Mondrian Investment Partners, delivered a whopping 40.94...

Shore rides wave of VCT success with new launch.(venture capital trust)(Brief Article)
June 13, 2005... Private equity investment bank Shore Capital will launch another venture capital trust this tax year following positive fund raising on its first fund. Shore's Puma VCT I and II invests in low risk small companies -- including listed Aim...

Travis does not hang around.(Jeff Travis leaves Cavendish Young )(Brief Article)
June 23, 2005... Jeff Travis has left IFA Cavendish Young six months after joining and heading out on the acquisition trail. Mr Travis, appointed as sales and development director at the business and given the task of hitting the acquisition trail, said he...

IFA set to take FSA to tribunal.(Whitechurch Securities sues Financial Services Authority)(Brief Article)
June 23, 2005... WHITECHURCH Securities is taking the FSA to a tribunal over the mis-selling of precipice bonds. The IFA has contested the regulator's order that the business must write to 900 clients who received information about precipice bonds sent out...

On top of the news, on top of the world.(Brief Article)
June 23, 2005... SOME like it on the train, some like it in the office -- and then others like it in front of a Tibetan palace surrounded by Buddhists at prayer. David Myers, broker for Central Mortgages, made sure he had the essential travel item with him...

Charcol strikes speciality deal.(Hargreaves Lansdown and John Charcol's contract)
June 23, 2005... A DEAL struck between Hargreaves Lansdown and John Charcol will see customers passed between the two companies as residential property becomes available inside Sipps. The deal will mean that any customers who approach Hargreaves Lansdown...

Processing of pensions is taking longer.(money transfer by financial advisers)(Brief Article)
June 23, 2005... IT now takes Skandia more than two months to obtain monies for transfers into its Section 32 contract, according to the company. The insurer revealed providers' turn around times were increasing, as a growing number of advisers transfer...

FSA 'should have uncovered conman'.(United Kingdom. Financial Services Authority and Lyndon Fuller's case of fraud)(Brief Article)
June 23, 2005... A FORMER colleague of a south Wales IFA who conned clients out of AGBP300,000 has queried the depth of searches conducted by the FSA. Lyndon Fuller, of East Yorkshire, started a two year and nine month prison sentence at the start of this...

New Product - Scottish Widows.(Scottish Widows Bank.)(Brief Article)
June 23, 2005... SCOTTISH Widows Bank is allowing variable-rate mortgage customers to use their savings to reduce the amount of interest they pay. From this week, customers who apply for a part-fixed, part-variable loan on its professional and flexible...

Aegon man goes on Tour.(Banco Santander forms Allfunds Bank)(Brief Article)
June 23, 2005... THE LAUNCH of Banco Santander's Allfunds fund platform is not the final nail in the coffin for Abbey's wrap proposition, according to a senior industry figure. Just two months after Abbey's new owners, Banco Santander, promised to back the...