Fund Strategy articles from April 2005

Fund Strategy archives from April 2005

COMMENT: Property returns are illogical, captain.
April 4, 2005... Given the popularity of property investment at present, it is important to subject some of the arguments for investing in real estate to scrutiny. One of the most common is that investing in bricks and mortar helps protect investors against...

Supermarket Isa sales set to boom.(Investment Savings Account )
April 4, 2005... Cofunds and FundsNetwork have both reported substantially higher Isa sales for the 2004/5 tax year compared with the previous year. As the Isa season draws to an end this week, Rob Fischer, marketing director at FundsNetwork, says its...

Artemis funds to be merged into CSAM portfolio.(Credit Suisse Asset Management)(Brief Article)
April 4, 2005... Following the purchase of the Artemis fund of funds business, Credit Suisse Asset Management will merge four Artemis funds into its existing portfolios and leave four unchanged. The funds to be merged include Artemis Portfolio Growth,...

Pegrum to manage new Cazenove hedge fund.(Cazenove Capital Management hedge funds, Neil Pegrum )(Brief Article)
April 4, 2005... Cazenove Capital Management is launching a hedge fund, to be run by Neil Pegrum. The Cazenove UK Dynamic Absolute Return fund will launch on June 1. Pegrum, who currently manages the long-only UK Dynamic fund, says: "The long side of the...

IN BRIEF: Jupiter open for last-minute Isas.
April 4, 2005... Jupiter is accepting Isa applications until the Isa deadline at midnight on April 5. Investors can apply for a Jupiter Isa by visiting www.jupiteronline.co.uk or calling the group on 020 7314 7600. New Star has also organised two last-minute...

IN BRIEF: Fidelity to offer 17 Isa pick-up points.
April 4, 2005... Fidelity is planning to open 17 Isa collection points across Britain on April 5. Most locations will open from 8am-6pm, with its London, Reigate and Tonbridge pick-up points open until midnight. Alternatively, call Fidelity's Brokerline on...

IN BRIEF: Legal & General open for deadline.
April 4, 2005... Legal & General's Cardiff office will be open until midnight on April 5 for Isa applications. Investors can also apply for an Isa at www.legalandgeneral.com/offer. The group's phone dealing service on 0800 092 0092 and its fax service on...

IN BRIEF: Williamson heads emerging debt.(Helene Williamson replaces Jacob De Wit )(Brief Article)
April 4, 2005... F&C has appointed Jacob De Wit as head of fixed income. De Wit replaces Helene Williamson, who is now head of emerging debt. Williamson's plans for developing the emerging debt part of the business include the launch of absolute return...

IN BRIEF: Max King joins Investec.(Investec Asset Management)(Brief Article)
April 4, 2005... Investec Asset Management has appointed Max King as a senior portfolio manager. King will co-manage the Investec Managed Growth fund with Philip Saunders and will also join the Investec global asset allocation team. King was previously a...

IN BRIEF: Rathbones takes to the road.(Brief Article)
April 4, 2005... Rathbones will run roadshows for advisers outlining the views, themes and ideas around three of their funds. Managers Carl Stick and James Thomson plus chief investment officer Julian Chillingworth will speak about the Rathbone Income,...

Fidelity adopts closed-ended focus.
April 4, 2005... Stephen Westwood, the new head of investment trusts at Fidelity, hopes to take advantage of the group's open-ended marketing powers to start fully promoting its range of closed-ended funds. Westwood joined Fidelity at the end of February...

Murray VCT 4 to reappoint Murray Johnstone.(Brief Article)
April 4, 2005... The board of Murray VCT 4 is set to reappoint Murray Johnstone as manager of the trust, just one month after serving notice on its contract. Board director Will Holt has resigned. Murray VCT 4 has reneged on its announcement to appoint...

Train to boost Finsbury trust with extra #10m.(Nick Train Investment, Finsbury Growth & Income investment trust)(Brief Article)
April 4, 2005... Nick Train will have an extra #10m to invest for his #91.4m Finsbury Growth & Income investment trust from this week. This will follow an extraordinary general meeting on April 6 to approve the issuing of the new shares. The trust also has...

IN BRIEF: F&C changes bond fund name.(F&C Asset Management)(Brief Article)
April 4, 2005... F&C Asset Management has changed the name of the #51.2m High Income Bond fund to the F&C Fixed Interest fund. The fund is managed by Ian Robinson, head of credit strategy at F&C. According to the group, the name change was made in order to...

IN BRIEF: Ratings upgrade for Gartmore fund.(Standard & Poor's)(Gartmore European Focus fund)(Brief Article)
April 4, 2005... Standard & Poor's has upgraded the #75.7m Gartmore European Focus fund, managed by Gary Clarke, to an AA rating. The fund's previous A rating was raised because of Clarke's disciplined approach and consistent performance, according to S&P....

IN BRIEF: Roadshows from Neptune duo.(Neptune Investment Management Inc.)(Brief Article)
April 4, 2005... Neptune Investment Management will be running a series of four roadshows for advisers from May 24-26. Neptune chief investment officer Robin Geffen and US Opportunities fund manager Greg Bennett will speak at the shows, which will be in...

Global property range for Schroders.(global property investment products)
April 4, 2005... Schroders is planning to develop a series of global property investment products later this year, in partnership with American real estate investment boutique European Investors Incorporated. According to the group, the first fund to be...

Reits taxation rule could force all funds into line.(Real estate investment trusts)(Brief Article)
April 4, 2005... The government says it plans to consider the issue of tax on property rental income within authorised funds during its consultation on real estate investment trusts According to the Treasury's recent discussion paper on Reits the...

Axa gets physical with real estate in Britain and across Europe.(AXA Investment Managers)
April 4, 2005... Axa Investment Managers is launching a European real estate fund, investing in physical commercial property in both Britain and Europe. The Axa Property trust will be launched later this month and is to be listed on the London Stock...

IN BRIEF: Axa appoints Iggo as strategist.(Christopher Iggo appointed)(Brief Article)
April 4, 2005... Axa has appointed Christopher Iggo as a UK strategist within its global investment strategy department, based in London. Iggo will be responsible for regular forecasts on UK macroeconomic data, and will provide support to Axa's UK investment...

IN BRIEF: Two take top jobs at Mellon Europe.(Jon Little and Helena Morrissey appointed)(Brief Article)
April 4, 2005... Mellon Financial Corporation has appointed Jon Little and Helena Morrissey as co-chairs of Mellon Europe, as of May 3. Little is currently chief executive of Mellon Global Investments. Morrissey is chief executive of Newton Investment...

IN BRIEF: MassMutual buys Barings from ING.(Massachusetts Mutual Life Insurance Co. acquires Baring Asset Management Inc. from ING Groep N.V.)(Brief Article)
April 4, 2005... MassMutual Financial Group has completed the acquisition of the global investment management arm of Baring Asset Management from ING Group. As reported in Fund Strategy in November, Barings will continue to run independently, with chief...

Rathbones sticks over Rensburg bid.
April 4, 2005... Rathbones has decided not to increase the terms of its pre-conditional offer to take over Rensburg, a week after Rensburg conditionally acquired Carr Sheppards Crosthwaite from Investec. The Rensburg board initially rejected the offer from...

Threadneedle seeks replacement for Holden.(Threadneedle Investments )(Mark Holden )(Brief Article)
April 4, 2005... Mark Holden has left Threadneedle Investments following recent poor performance of the UK Select Growth and UK Accelerando funds that he managed. Threadneedle says the decision was purely based on the performance of Holden's funds....

AAA rating for Pease by Standard & Poor's.(Richard Pease, European growth fund)
April 4, 2005... Standard & Poor's has upgraded Richard Pease's #316m New Star European Growth fund to AAA status in its annual review of the European funds sector. Meanwhile, following the recent departure of Stuart Mitchell at JO Hambro Investment...

Asia looks across the Pacific for monetary policy lead.
April 4, 2005... Most people who follow such things assume that the Federal Reserve is America's central bank. But such a premise is no longer strictly true. In many respects the Fed has become the central bank for much of Asia, particularly China, as well...

TRENDS: The pros and cons of private equity.
April 4, 2005... Returns from private equity have been so good that investors would be forgiven for thinking the party cannot continue. But to ignore such funds is to ignore a diversification opportunity. There are 18 quoted private equity funds...

STRATEGY: ERP: compensating for relative risk.(equity risk premium)
April 4, 2005... Equities are a higher-risk investment than bonds and should therefore offer higher returns. But without clearly defined guidelines, how can future risk/return ratios be assessed? Equities are riskier than government bonds. As such,...

Q&A: How conviction shapes dynamic duo of funds.(Cazenove UK Dynamic fund)(Interview)
April 4, 2005... Neil Pegrum, manager of the Cazenove UK Dynamic fund, answers questions from James Teasdale. Q: You have run the Cazenove UK Dynamic fund since launch on September 30, 2004. What is the mandate of the portfolio and the current fund...

Hot property.
April 4, 2005... Investors cannot get enough of commercial property at the moment. But is their interest simply a passing fancy or does it indicate a real asset allocation shift? Share Godfrey investigates In the past five years it has not been easy to...

Property derivatives: meeting demand.(Brief Article)
April 4, 2005... Under the Financial Services Authority's 2004 Coll sourcebook, which sets out the rules for collective investment schemes, property funds are permitted to invest in derivatives. This is a relatively new development, but one that Scottish...

To Reit or not to Reit? Latest news from the government.(real estate investment trusts)
April 4, 2005... The government has bowed to pressure from the property industry and dropped the proposed Property Investment Fund tag in favour of the industry-standard UK Reit. This latest development in the saga of the Reit came in a discussion paper...

CHANNELS: An administration aid for the intermediaries.(Malcolm Murray)(Transact)(Interview)
April 4, 2005... Malcolm Murray, sales director of Transact, answers questions from Sarah Godfrey. Q: What was the original aim of Transact, and has that changed since it was set up? A: The aim hasn't changed in the five years since we started....

Having confidence in confidence.
April 4, 2005... After good returns in 2003, investors began taking tentative steps back towards Japan. So far they have not been repaid, though SG Japan manager Neiloy Ghosh says all this could change. Neiloy Ghosh is a brave young thing. Manager of the...

FOCUS: Henderson faces up to its failings.(Henderson Global Investors )
April 4, 2005... Despite being one of the big players in the 1970s and 1980s, Henderson has had a rough ride lately. Can the current restructuring of its business get it back on track? Helen Burnett reports. Henderson Global Investors has not had an easy...

FoFs: The courage of your convictions.(fund of funds)
April 4, 2005... T Bailey Growth fund manager Jason Britton argues that constant monitoring and conviction-based asset allocation is the way to ensure the firm's portfolio remains at the top of its game. How many times have you heard a fund manager proclaim...

Fund of funds performance data.
April 4, 2005... This month sees a new entry into the Global Growth sector (funds of funds only) one-year figures. The Resolution International fund, managed by Premier Portfolio Managers, debuts in the sector with a placing of 15th out of 21. This follows a...

Fund Manager's Diary: 12-18 March 2005.
April 4, 2005... Saturday My diary starts here, and so does preparation for our first baby. My wife is due to give birth in six weeks, so today's birth- preparation workshop is not a moment too soon. I come away well briefed on the use of positioning,...

COMMENT: Investing ethically is morally bankrupt.
April 11, 2005... Ethical investment is one of the most striking developments in finance in recent years. Although a minority of private investors use overtly ethical funds, the sector is seen as virtually sacrosanct. Few are willing to criticise ethical...

Threadneedle considers new launch.(Threadneedle Investments )
April 11, 2005... Threadneedle Investments is seriously considering the launch of an absolute return bond fund into its Specialist Investment Funds Oeic. The fund would fall somewhere between a long-only and hedge fund structure, says Mary Blair, director of...

IMA reports major drop in Isa sales on last year.(Investment Management Association)(Brief Article)
April 11, 2005... Net retail fund sales and net Isa sales were down substantially in February, compared with February 2004, but higher than the relatively poor showing in January. Net retail sales fell to #542m compared with #759m the previous February,...

UK managers to lobby EU on Ucits III funds.(European Union)(Brief Article)
April 11, 2005... British asset managers will lobby the European Union to allow investment trusts to continue to be held in Ucits III funds. This follows the publication of a consultation paper by the Committee of European Securities Regulators (CESR), which has...

IN BRIEF: F&C announces new appointments.(appointed Philip Chow as director of UK bonds)(Brief Article)
April 11, 2005... F&C has appointed Philip Chow as director of UK bonds. Chow was previously at West LB and Threadneedle. Femi Awotesu will also join F&C as a fund manager assistant on the UK bond team. Awotesu was formerly at Atlantic Equities and Invesco...

IN BRIEF: Witan waives fee.(Brief Article)
April 11, 2005... Witan investment trust is waiving its 1% dealing fee for investments into the fund made prior to May 31. The #1.4bn trust changed its mandate to a multi-manager approach in September 2004. Its net asset value increased by 7.6% and its share...

IN BRIEF: Morley adds to its global equity team.(appointments)(Brief Article)
April 11, 2005... Two new analysts will join Morley Fund Management's global equity team. John Wilson joins from HSBC Asset Management in Tokyo, where he was a senior fund manager. Nicole Mardell was a global equity analyst at First State Investments. They...

IN BRIEF: Trust's new share issue approved.(Brief Article)
April 11, 2005... Shareholders of the Finsbury Growth & Income investment trust have approved the issue of 3,845,000 new ordinary shares, increasing the fund's size by #9.2m. The issue was approved at an extraordinary general meeting held on April 6 and...

IN BRIEF: Fidelity cuts bond fund charge.(Brief Article)
April 11, 2005... Fidelity has reduced the initial charge on its new Sterling Bond fund to 3% from 3.5% until May 31. The fund, which is due to launch next week (April 18), will have a fixed launch price of 25p until April 29. Managed by Ian Spreadbury, it...

Revamp for Finsbury Life Sciences.
April 11, 2005... The Finsbury Life Sciences investment trust's board is changing the investment adviser, mandate and name of the trust. New York-based OrbiMed Advisors will become investment advisers to the portfolio, taking over from current managers...

Rathbones withdraws Rensburg takeover offer at last hurdle.(Investment companies)(Brief Article)
April 11, 2005... Rathbones has decided to withdraw its takeover offer for Rensburg, after failing to receive a recommendation from the Rensburg board. The decision was made last week after the group received initial feedback from key Rensburg shareholders. ...

IN BRIEF: Gartmore funds win OBSR rating.(Gartmore Global High Alpha Strategy fund)(Brief Article)
April 11, 2005... OBSR has given the Gartmore Global High Alpha Strategy fund and UK High Alpha Strategy fund an A rating, meaning that all the funds within Gartmore's multi-manager range are now rated. The group is offering 4% commission to advisers and a 1%...

IN BRIEF: Skandia extends supermarket range.(Brief Article)
April 11, 2005... Skandia has added the Framlington Monthly Income fund to its fund supermarket range. The #106m fund, which is managed by George Luckraft, had top three holdings of BP, HSBC and Speedy Hire at February 28. Together with Richard Peirson's Managed...

T Rowe wins Skandia US portfolio.
April 11, 2005... Skandia Investment Management has selected American investment firm T Rowe Price to manage half of the American equity portfolio within its new Asset Allocator multi-manager range of funds. Two T Rowe Price funds in particular have been...

Prudential plans new additions to Flexible Investment Plan wrap.(Brief Article)
April 11, 2005... Prudential is set to launch a series of dedicated distribution income funds within its Flexible Investment Plan wrapper. The group will launch two multi-asset managed funds as well as seven single asset class funds on April 25. The new...

IN BRIEF: Medium Term plan from L&G.(Brief Article)
April 11, 2005... Legal & General has launched a Medium Term Investment Plan available to Isa investors. The plan will invest into L&G's General Distribution trust and is being sold via its newly developed basic advice service. The minimum investment amount...

IN BRIEF: Mike Smith set to join Skandia.(appointed Mike Smith as head of investment sales.)(Brief Article)
April 11, 2005... Skandia Investment Management has appointed Mike Smith as its new offshore head of investment sales. Smith joins from Gartmore, where he was head of UK retail distribution. He will take over the sale of Skandia's investment products, including...

IN BRIEF: B&B offers new mini cash Isas.(Brief Article)
April 11, 2005... Bradford & Bingley launched two new mini cash Isas last week for investors looking to get an early start on the tax year. The Isa Regular Saver offers an interest rate of 6% over one year to investors making monthly contributions of up to...

Prospects good for emerging markets.(Brief Article)
April 11, 2005... The World Bank has taken an upbeat view of the prospects for emerging markets while also warning of the dangers posed by global imbalances. In its annual Global Development Finance report the bank forecasts GDP growth in developing...

Government bond yields "too low", warns IMF.(International Monetary Fund )(Brief Article)
April 11, 2005... The International Monetary Fund has warned that mature government bond yields and global credit spreads may be too low. As a result there is greater potential for bad news to destabilise the markets. In its latest six-monthly Global...

Oil demand will fire continued volatility.
April 11, 2005... Investors should expect the oil market to remain tight until at least 2010 while expecting to live with high and volatile oil prices, according to the International Monetary Fund. IMF chief economist Raghuram Rajan says that oil prices...

Are things beginning to look up for the Isa industry?
April 11, 2005... Following the end of the tax year on April 5, the performance of the fund industry's Isa sales traditionally makes its way into the headlines. Fidelity, Jupiter and New Star have all reported jumps in their sales compared with last year, while...

TRENDS: Frankenstein gets a makeover.
April 11, 2005... Biotechnology has been the next big thing for so long that investors could be forgiven for tiring of its lacklustre returns. But will 2005 really prove a springboard for the sector? Rarely does an investment fund become the month's top...

STRATEGY: Why M&A is making a comeback.(mergers and acquisitions )
April 11, 2005... The latest flurry of mergers and acquisitions after a prolonged period of inactivity tells some important truths about the state of the current business cycle and the shape of things to come. One of the key features of financial markets in...

Q&A: HSBC helping investors keep their options open.(Interview)
April 11, 2005... HSBC's Bob Morris, who manages funds including its new UK Freestyle funds, talks to James Teasdale. Q: A number of absolute return-based products have been launched recently in the British market. Why has HSBC decided to pursue this type...

SRIs: Ethical returns.(Socially responsible investments)
April 11, 2005... Socially responsible investments have suffered under the misapprehension that they cost more yet do not perform as well as mainstream funds. But, says Stephanie Spicer, there may be a - green - light at the end of the tunnel for SRIs. Two...

CHANNELS: Supermarket shopping for the discerning buyer.(interview of Martin Campbell from Interactive Investor)(Interview)
April 11, 2005... Martin Campbell, head of media relations for Interactive Investor, talks to Sarah Godfrey. Q: What was the original aim of Interactive Investor, and how has that changed? A: When Interactive Investor launched in 1995 it was the first...

ANALYSIS: Standing out in an outstanding herd.
April 11, 2005... Equity income funds have creamed the opposition in recent years, but JOHCM's Clive Beagles thinks the key to success in the future will be milking every last drop from a tough market. Over the past three years there has been only one...

FOCUS: Axa pursues aggressive will to win.(Axa Investment Managers)
April 11, 2005... Since joining Axa Investment Managers, UK chief executive Paul Griffiths has transformed the company in his focus on the 'three Ps' - process, people and pay. James Teasdale investigates. Since Paul Griffiths joined Axa Investment Managers...

FoFs: Maintaining a nice big earner.(Goy Harris Cartwright High Income fund)(Neil Vernon )
April 11, 2005... Neil Vernon talks about why he thinks the Goy Harris Cartwright High Income fund, which he manages, has performed so well against others in the UK Equity & Bond Income sector. Most income managers would probably concede that in rapidly...

Fund of funds performance data.(Brief Article)
April 11, 2005... The biggest mover in the regional sector fund of funds rankings since last month is Insight Investment's Asia Pacific Portfolio. Bottom of the Asia Pacific ex Japan (fund of funds only) over three years last month, the fund has since moved...

Fund Manager's Diary: 29 March-4 April 2005.
April 11, 2005... Tuesday I like these four-day weeks. After a "quiet" Easter at home dealing with our livewire 20-month-old daughter and a broken central heating system it's almost a relief to get on the 06.23 at Ipswich and catch up on the weekend's news...

COMMENT: US decline is cause of global imbalances.
April 18, 2005... Global imbalances are the current obsession of those interested in the world economy. The big debate is over whether the world can be rebalanced smoothly or if a painful readjustment lies ahead. This debate became particularly pronounced...

Godfrey sorry for split-cap comments.(Daniel Godfrey)
April 18, 2005... Daniel Godfrey, director general of the Association of Investment Trust Companies, has apologised to all those individuals and groups involved in the recent split-capital investment trusts crisis. Speaking at the AITC directors'...

Legg Mason's Mark Westwood set to join Morley.(Appointed Mark Westwood as UK Equity Fund Manager)(Brief Article)
April 18, 2005... Mark Westwood, manager of the Legg Mason UK Equity, UK Income and UK Opportunities funds, has resigned to join Morley Fund Management. Westwood, who works for Batterymarch Financial Management - a sister company of Legg Mason Investments -...

Exeter and T&G agree payment deal with FSA.(Exeter Asset Management)(Teather & Greenwood )(Financial Services Authority )
April 18, 2005... Exeter Asset Management and Teather & Greenwood have negotiated an agreement with the Financial Services Authority in relation to the split-capital investment trusts scandal. Exeter, a subsidiary of iimia Investment Group, will make a #1m...

IN BRIEF: Fowler looks to life assurance.(Brief Article)
April 18, 2005... Stuart Fowler, manager of the Axa UK Opportunities fund, will position his portfolio towards a strong overweighting in the life assurance sector. Fowler favours stocks such as Aviva and Prudential and says that stable markets will help life...

IN BRIEF: Selestia adds 23 Schroders funds.(Brief Article)
April 18, 2005... Selestia has added 23 Schroders funds to its Collective Investment Bond and Offshore Collective Investment Bond products. The new offerings include UK equity, European equity, income, specialist equity and multi- manager funds. The funds were...

IN BRIEF: Ruth Nash joins JOHCM Japan.(Appointed Ruth Nash as Japan Research Analyst)(JO Hambro Capital Management )(Brief Article)
April 18, 2005... JO Hambro Capital Management has appointed Ruth Nash as a Japan research analyst. She will work alongside fund manager Scott McGlashan on the JOHCM Japan fund. Nash was most recently a fund manager at British Steel Pension fund, where she was...

IN BRIEF: Clerical offers new Oeic tranche.(Clerical Medical Secure Investment)(Brief Article)
April 18, 2005... The second offering of the Clerical Medical Secure Investment Plan is now open and is available to investors until June 10. The plan, which operates under the Ucits III rules, forms the group's second phase of Oeic funds. The first phase was...

IN BRIEF: Two join F&C property team.(F&C Property Asset Management)(Appointments)(Brief Article)
April 18, 2005... F&C Property Asset Management has appointed David Ray as asset manager and Simon Wright as project manager. Ray was previously an estates manager at Lloyds TSB. He will be responsible for industrial management at F&C. Wright joins the group...

IN BRIEF: Hargreaves funds top #250m mark.(Brief Article)
April 18, 2005... Hargreaves Lansdown's three funds of funds have broken through the #250m barrier of funds under management. Managed by Lee Gardhouse, two of the three funds - HL Multi Manager Income & Growth and Multi Manager Special Situations - are top of...

STS rejects latest hostile Pigit bid.(Securities Trust of Scotland )(Perpetual Income & Growth investment trust)
April 18, 2005... The board of the Securities Trust of Scotland has rejected a second, improved offer from the Perpetual Income & Growth investment trust. The revised hostile takeover bid, made on April 8 by the board of Pigit, improved the cash exit...

Fees up on Threadneedle and CSAM income funds.(Credit Suisse Asset Management )(Brief Article)
April 18, 2005... Credit Suisse Asset Management and Threadneedle Investments are increasing charges on their equity income funds. CSAM is raising the annual management charge from 1.2% to 1.5% on its Credit Suisse Income and Monthly Income funds....

MFS to bring all funds under its Lux umbrella.
April 18, 2005... MFS Investment Management plans to merge its three non-US-based fund ranges into one large offering, which will be based in Luxembourg. The move, scheduled to take place in mid-September, will see the group's three UK Oeic and 22 Cayman...

IN BRIEF: Property head for Merrill Lynch.(Appointed John Gellatly as Head of Indirect Property Investment and Strategy)(Brief Article)
April 18, 2005... John Gellatly has joined Merrill Lynch Investment Managers as head of indirect property investment and strategy. Gellatly is to manage MLIM's UK Property fund of funds and will head the group's strategic research in the real estate sector....