Fund Strategy articles from April 2006

Fund Strategy archives from April 2006

COMMENT: Vulture culture has role in marketplace.
April 3, 2006... As Simon Hildrey pointed out last week in his cover story on pension fund deficits (March 27, page 27), for every car sold by General Motors in America, $1,600 (#922) of the purchase price goes to funding the post-employment benefits of...

Lang pursues fresh opportunities with index sell-off.
April 3, 2006... Jeremy Lang has sold the index of the largest 20 stocks in the FTSE 100 from his Liontrust First Growth fund for the first time since 1998. Liontrust says the decision to sell the index reflects the increased confidence about the...

Isa sales rocket more than 50% since last year.
April 3, 2006... February's net Isa sales were 53% higher than in the same period last year, according to statistics from the Investment Management Association. Net sales were #131m, compared with #86m in 2005. This was the result of a 40% rise in gross...

IN BRIEF: New Star's assets increase by #6bn.(Brief article)
April 3, 2006... New Star Asset Management increased its assets under management from #10.7bn to #16.8bn in 2005, according to its preliminary annual results published on Friday. Retail assets under management grew by 34%, driven in part by a doubling in...

IN BRIEF: Bernanke raises federal funds rate.(Brief article)
April 3, 2006... The incoming Federal Reserve chairman, Ben Bernanke, raised the federal funds rate by 25 basis points to 4.75% at his first meeting in charge of the Federal Open Market Committee on March 28. The move was widely expected; however, the...

India and China "need reform for economies to succeed".
April 3, 2006... The prospects for the continued growth of the Indian and Chinese economies depends on each country's government adopting the necessary reforms. These were the opinions of Nicholas Lardy and Vijay Joshi, speaking at the Fund Strategy...

Policy errors stunt bond yields, says academic.
April 3, 2006... Global monetary policy error is the biggest factor behind today's low global bond yields, says Andrew Clare, professor of finance at the Cass Business School. While high saving in East Asia and a possible labour market shock are also...

IN BRIEF: Legg Mason gives presidency to CIO.(Brief article)
April 3, 2006... Legg Mason Capital Management has made Bill Miller, manager of the American-domiciled Legg Mason Value fund, its president. He continues to act as the firm's chief investment officer and as portfolio manager of all the accounts he currently...

IN BRIEF: GAM European fund rated AA.(Brief article)
April 3, 2006... The GAM Star European Systematic Value fund has been awarded an AA (New) rating by Standard & Poor's after its first assessment of the fund. The Dublin-domiciled fund was launched in December 2004 and is managed by Ross Hollyman, formerly of...

IN BRIEF: SVM departures correction.(Brief article)
April 3, 2006... In last week's Fund Strategy Focus on SVM Asset Management (March 27, page 34), the introduction incorrectly stated that eight fund managers had left the company in as many weeks in the final quarter of 2005. The true figure, as correctly...

Stein warns of global "hard landing".
April 3, 2006... Despite strong years for the global economy in 2004 and 2005, the pace of growth this year is likely to slow. This is the view of Gabriel Stein, director of Lombard Street Research, speaking in the first session of the Fund Strategy Investment...

Coyle highlights "scourge of technology hype".
April 3, 2006... The emergence of new technologies has led to important structural changes in the global economy, says Diane Coyle, head of Enlightenment Economics. Coyle, also a member of the UK Competition Commission, says there is often a lot of hype...

Economists clash over ageing timebomb fears.
April 3, 2006... The world's ageing population poses both fiscal and economic growth challenges, according to Richard Jackson, senior fellow at the Center for Strategic and International Studies. Jackson says improved life expectancy and lower birth rates...

IN BRIEF: Absolute return fund launched.(Brief article)
April 3, 2006... Invesco Perpetual has launched a Luxembourg-based absolute return fund investing in continental Europe. The Invesco Continental European Absolute Return fund is managed by European equity fund manager Dominic Wallington and fixed interest...

IN BRIEF: OECD updates book of facts.(Brief article)
April 3, 2006... The Organisation for Economic Cooperation and Development has published its 2006 Factbook of economic, environmental and social statistics. It includes more information on developing countries such as Brazil, Russia, India, China and South...

IN BRIEF: Forum names new chairman.(Brief article)
April 3, 2006... Elizabeth Corley, chief executive officer of Allianz Global Investors Europe, has been named as the new chairman of the Forum of European Asset Managers. FEAM was established in 2004 to represent the interests of asset managers. It is...

Premier chosen to run Gartmore fund.
April 3, 2006... Premier Fund Managers, the asset management subsidiary of Premier Asset Management, has been appointed to run the #22m split-capital Gartmore Absolute Growth & Income investment trust (GAGIT). The move follows a vote in which 59.66% of...

Axa Framlington hires Hardie for Japanese desk.
April 3, 2006... Chisako Hardie is joining Axa Framlington as fund manager on its Edinburgh-based Japanese desk. Hardie, currently the manager of Scottish Widows Investment Partnership's Japanese Smaller Companies fund, will join the firm in early June....

MLIM forecasts good year for Latin America.
April 3, 2006... Merrill Lynch Investment Managers expects 2006 to be a strong year for Latin American equity markets. Stability, coupled with regional current account and trade surpluses, has reduced investment risk and MLIM says this has not been priced...

Equities chief joins SLI.
April 3, 2006... Standard Life Investments has appointed Stan Pearson as head of European equities, replacing Fraser Chalmers, who, after four years, is returning to his role as an investment director in the Japanese equities team. Pearson joins from...

Simplified pensions system helps Sipps to come of age.
April 3, 2006... For those involved in the rapidly expanding world of self invested personal pensions, this year's Budget statement was quite extraordinary. There was no mention in the Chancellor's speech of pensions tax simplification - the biggest reform of...

TRENDS: Multi-asset investing is now a reality.
April 3, 2006... Changes in the regulatory regime, combined with an increasingly sophisticated marketplace, will enable multi-managers to offer investors true multi-asset-class retail investment products. The British retail investment market is on the cusp...

STRATEGY: India is the real Asian growth story.
April 3, 2006... The Indian stockmarket has risen a spectacular 150% since 2004 and the long-term prospects for the economy could be even better than China's. But has the good news already been priced in?Although the spotlight has been firmly on China, and...

Q&A: Neptune trawls fresh water for bigger catch.(Interview)
April 3, 2006... Robin Geffen, chief investment officer of Neptune Global Income fund, is questioned by Adam Lewis. Q: Why have you decided to launch a global income fund? A: The Investment Management Association's UK Equity Income sector has been...

FEATURE: Rich pickings.
April 3, 2006... Vulture investors - those who buy up distressed debt - have long been a feature of the American investment landscape but have so far had little chance to scavenge for profits in Europe. However, the situation is changing. Sunil Jagtiani...

The American approach.
April 3, 2006... Professor Edward Altman, a leading distressed debt expert, has identified a number of distinct distressed debt investing strategies in America, each targeting a different level of return. One approach, the most short-term tactic, is what he...

British distressed debt opportunities.
April 3, 2006... An ordinary British investor does not have many avenues through which to gain exposure to distressed investing to diversify his or her investment portfolio. Franklin Templeton, the US-headquartered asset manager, offers a couple of investment...

REVIEW: Argument built on questionable logic.
April 3, 2006... The authors' claim that the source of global economic imbalance is a glut of Asian savings rather than insufficient American savings is well argued, but ultimately relies on a flawed assumption. Charles Dumas and Diana Choyleva The...

FoFs: American retreat boosts IdB Global.
April 3, 2006... Insinger de Beaufort's Global Equity fund has offered disappointing returns since its 2002 launch. But following a restructuring, that should be about to change, says co-manager Peter Fitzgerald. "We had a big restructure towards the end...

ANALYSIS: Brazil is focus of regional bonanza.
April 3, 2006... Brazil and other countries in the region now enjoy political and economic stability - so Merrill Lynch's Will Landers is bullish about his newly acquired Latin American investment trust. What a party they have had in Brazil. Share prices...

FOCUS: Regime change heralds turnaround.
April 3, 2006... Henderson Global Investors has taken on new managers and made better use of those it already employs. Head of wholesale Phil Jefferson is pleased with the results. Sarah Godfrey reports. It is easy to spot a new regime. There is no...

AFI: Domestic equities provide a boost.
April 3, 2006... The strength of British equities has helped the performance of the AFIs, with Tony Nutt's #3bn Jupiter Income trust, one of the most popular UK equity income funds, appearing in all three. Investors in British equities have fared well so...

Fund Manager's Diary: 20-24 March 2006.
April 3, 2006... Monday This is my first day in the office after spending four days last week in Cannes at a property conference, which involved countless lunches, cocktail parties and the like. Consequently, I have ensured that my diary this week will be...

COMMENT: Modern China needs better understanding.
April 10, 2006... There is an urgent need to develop a more specific understanding of China, given its importance in the world economy. Although a huge amount is written about China, hardly any of it grapples with the defining characteristics of Chinese society....

Britannic appoints Gartmore managers to run core funds.
April 10, 2006... Britannic Asset Management has recruited Gartmore European managers Tim Callaghan and Adrian Darley to run its core retail and institutional European equity funds. Callaghan, who manages the #56m Gartmore European Focus fund, and Darley,...

Aegon on course to launch UK small-caps fund.
April 10, 2006... Aegon Asset Management plans to launch a UK smaller companies fund within the next two months. The fund would be managed by the group's ethical investment team, with Elaine Morgan as lead manager. She will be supported by Audrey Ryan, who...

IN BRIEF: Ratings agency demotes fund.(Brief article)
April 10, 2006... Forsyth OBSR, a ratings agency, has removed the AA rating awarded to the Framlington UK Growth fund and withdrawn the fund from its service. The move follows the departure of manager Chris Murphy to Morley Fund Management. Forsyth says it...

IN BRIEF: A-day arrives with simplified rules.(Brief article)
April 10, 2006... Changes to pensions tax rules came into effect on April 6, 2006 (A- day).The new simplified tax regime allows individuals to save in more than one pension scheme at a time and, among other changes, provides tax relief on pension contributions...

IN BRIEF: First State VCT raises #15m.(Brief article)
April 10, 2006... First State Investments AIM VCT has raised more than #15m through its second offer of shares in the 2005/06 tax year. The company allotted 9,738,942 ordinary shares under the offer on April 4, increasing the size of the company to more than...

IN BRIEF: Wesleyan unveils guaranteed bond.(Brief article)
April 10, 2006... Wesleyan Assurance Society is launching its sixth Guaranteed Income Bond (GIB), a single premium life insurance plan. Available to Wesleyan customers only, the GIB guarantees investors a net income of 3.75% a year, payable monthly, for five...

Jupiter poised to replace green trust.
April 10, 2006... Jupiter is to launch a new ethically invested investment trust following the announcement of proposals last week to wind up the #54.3m Jupiter Global Green Investment Trust. Prospectuses for the Jupiter Green Century trust will be issued...

Seasoned manager to take control of US funds.
April 10, 2006... Bob Harber, a senior investment manager with Fidelity Management and Research, is to take over the #511m American Special Situations Fund on July 1. The current manager, Neal Miller, is to step down to take up an advisory role within...

Eclectica unveils two European funds as legal edict expires.
April 10, 2006... Hugh Hendry, former manager of the Odey Continental European fund, has returned to managing European retail funds with last week's launch of the Eclectica Continental European and Eclectica European funds. Having resigned from Odey in...

IN BRIEF: Cash injection for three Matrix funds.(Brief article)
April 10, 2006... Matrix has raised more than #16m of new money into three hedge fund products that were launched last month. The Matrix Ascension Plan 2 Top Up, the Matrix Horizon Closed End fund and the Matrix Max fund will offer the UK investor opportunities...

IN BRIEF: Close Bros buys Fortune Group.(Brief article)
April 10, 2006... Close Brothers' asset management division has announced its acquisition of Fortune Group, a London-based hedge fund manager. The move is part of the merchant bank's plan to build its asset management platform and extend its alternative...

IN BRIEF: Cash inflows fox Europe managers.(Brief article)
April 10, 2006... Europe fund managers are increasingly challenged by large cash inflows, according to Standard & Poor's. In its latest review of the sector, S&P says its rated funds saw an average size increase of 60%. The highest fund return was 50%, with...

Majedie UK Alpha fund opens to retail.
April 10, 2006... Majedie Asset Management has made its UK Alpha fund available to retail investors from April 3. The fund, which increases the firm's retail range to two, has been managed by Jon Scriven since October 2005. "We always had absolute...

HSBC unveils emerging markets freestyle fund.
April 10, 2006... HSBC Investments has launched the Luxembourg-based Global Emerging Markets (GEM) Equity Freestyle fund. It is applying for distributor status for the fund that is part of the Global Investment Funds (GIF) range. The launch comes a year...

Gartmore revamps its MultiManager range.
April 10, 2006... Gartmore has made several changes to its MultiManager Fund range. Launched 18 months ago, the range will have its structure altered, its names changed and an amendment in frequency to one of the funds payments. Four of the group's...

IN BRIEF: Data suggest BoE will cut rates.(Brief article)
April 10, 2006... The Bank of England has held interest rates at 4.5% for the eighth month running, while the European Central Bank kept its rate static at 2.5%. The Bank based its decision on data suggesting British economic growth is moderating, meaning...

IN BRIEF: Firms bearish on UK economy.(Brief article)
April 10, 2006... British firms became bearish on the state of the UK economy last month, according to the March Business Barometer from Lloyds TSB Financial Markets. The percentage of businesses feeling optimistic about the economy fell from a 12-month high...

IN BRIEF: Experts forecast fall in property.(Brief article)
April 10, 2006... The Royal Institution of Chartered Surveyors forecasts a 17% decline in total commercial property returns in 2006 compared with 2005 and a 9% fall in 2007. This, it says, is the result of a slowdown in purchaser activity. In 2005, it says,...

Experts clash over China prospects.
April 10, 2006... Two leading economic consultancies are divided on whether a "hard landing" is likely for the Chinese economy in 2006-7. In a debate last week, Lombard Street Research argued that such a slow-down is imminent, while Capital Economics...

Premier chief forecasts end of Asian bond boom.
April 10, 2006... Richard Muckart, chief investment officer and head of Asian equities at Premier Asset Management, warns that high bond valuations may signal the end of the boom in Asian equities. "The peaking of bond markets has historically been a...

IMF points finger at oil exporters for bulk of global imbalances.
April 10, 2006... Oil exporters are about to supersede Asian countries as accounting for the largest part of America's current account deficit, according to the International Monetary Fund. Saleh Nsouli, director, offices in Europe for the IMF, said in a...

Code bites as trusts launch management reviews.
April 10, 2006... These are interesting times for investment trusts. Discounts have reached their tightest levels for 12 years and corporate action is on the rise. At the end of March, Premier Fund Managers was appointed to run Gartmore Absolute Growth and...

TRENDS: Pay the money and take your choice.
April 10, 2006... More flexibility for savers and advisers in the pensions arena is generally a good thing - but wider choice needs greater expertise when it come to selecting funds that will perform well. The freedom introduced by A-Day can only be...

STRATEGY: America must kick its spending habit.
April 10, 2006... American politicians are blaming Chinese currency manipulation for the US current account deficit. But one of the main factors is their failure to tackle rampant consumer overspending. An accommodative Federal Reserve has led to excessive...

Q&A: American slowdown is a healthy, positive sign.(Interview)
April 10, 2006... Tom Walker, manager of the Martin Currie North American fund, is questioned by Frances Hughes. Q: What do you feel is the outlook for North America in the face of a slowing economy? A: The economy is slowing, that is undeniable....

FEATURE: Spoilt for choice.
April 10, 2006... Retail investors can now combine any number of asset classes in their portfolios, yet remain reluctant to look beyond equities, bonds and cash. Simon Hildrey explains why it is time to consider alternative investments. s a former prime...

Case study: Yale Endowment.
April 10, 2006... The $15.2bn (#8.67bn) Yale Endowment portfolio has generated an annual net investment return of 17.4% over the past 10 years and delivered a return of 16% a year over the past 20 years. The portfolio uses a combination of academic theory and...

ANALYSIS: Mega-caps offer unexpected value.
April 10, 2006... Ed Burke, manager of the Invesco Perpetual UK Growth fund, is not normally one to invest in the largest UK companies. But that is exactly where is his portfolio is heavily weighted at present. It is odd to hear a manager at Invesco...

FoFs: New Star's active approach to Asia.
April 10, 2006... New Star Asia Portfolio manager Mark Harris is optimistic about the prospects for the region, but says having an active asset allocation strategy on the fund will be key to outperformance. Managing an Asian fund of funds requires a more...

CHANNELS: Boutique house aims for low-risk rewards.
April 10, 2006... Stephen Bailey, managing director of Walker Crips Asset Managers, is questioned by Will Jackson. Q: What is the history of Walker Crips? A: Walker Crips Weddle Beck was established in 1914 as a private client stockbroking house. We...

FOCUS: Underdog strives to become top dog.
April 10, 2006... Aegon Asset Management was beset by poor equity performance until a managerial change began to show results, says Jon Bennett, director of third-party business. Adam Lewis reports. When Fund Strategy last focused on Aegon Asset Management...

AFI: Wise managers seek good offices.
April 10, 2006... Commercial property has delivered strong returns over the past two years and experts predict a steady performance this year. But offices, rather than shops, may hold the greatest promise. British commercial property performed strongly over...

Fund Manager's Diary: 27 March to 2 April 2006.
April 10, 2006... Monday At 5.20am, the alarm bell rings. Unfortunately, I have no time for breakfast this morning, so I grab a hot shower and then head off into the cold and dark to catch my train. I arrive at the office at 7.15am and sift through my emails...

COMMENT: Global stability needs explaining.
April 17, 2006... Fund managers seem to have fallen in love with "the great moderation" judging by this month's Merrill Lynch survey. Over the past 18 months, they apparently believe, the business cycle has hardly moved. Economic conditions are remarkably...

Axa to merge four funds into two.
April 17, 2006... Axa Framlington plans to amalgamate four funds into two at the end of May, subject to unitholder approval. Blue Chip will be merged into UK Growth to create a fund with more than #100m in assets. Meanwhile, the #55m NetNet and #20m Nasdaq...

Jupiter appoints manager for Growth & Income.
April 17, 2006... Jupiter has announced the appointment of Philip Matthews as manager of the firm's #40m Growth & Income fund. It has not yet confirmed when Matthews, previously manager of UK Smaller Companies, will assume responsibility for the portfolio....

Fund managers' views unchanged despite global market surge.(Industry overview)
April 17, 2006... Perceptions of economic fundamentals have hardly changed over the past month despite a 4% rise in global stockmarkets, according to the latest Merrill Lynch survey. Fund manager perceptions of such indicators as global growth...

IN BRIEF: Investec unveils onshore Global.(Brief article)
April 17, 2006... Investec Asset Management has launched an onshore version of its Guernsey-domiciled Global Gold fund. The fund, available since April 10, is managed from South Africa by Daniel Sacks. The portfolio is 40% invested in South Africa and 37% in...

IN BRIEF: Henderson opens sterling class.(Brief article)
April 17, 2006... Henderson Global Investors has launched a sterling share class for three of its Horizon Luxembourg Sicav Property Equity funds: Pan European, Global and Asia Pacific. The funds target long-term capital appreciation by investing in quoted equity...

IN BRIEF: Axa appoints new responsible head.(Brief article)
April 17, 2006... Axa Investment Managers has appointed Raj Thamotheram as the London- based head of responsible investment. He joins from the position of senior adviser for responsible investment at Universities Superannuation Scheme. Thamotheram will start in...

IN BRIEF: Ansbacher hires ex-lawyer as chief.(Brief article)
April 17, 2006... Mike Hollings is to take over from Tim Price, who has been with the firm for five years, as the chief investment officer for Ansbacher. Hollings, a lawyer by background, has more than 20 years' investment experience. The firm also announced...

IN BRIEF: Investors earmark European property.(Brief article)
April 17, 2006... About 90% of advisers are considering investing in commercial property in Europe, according to a survey of 1,000 IFAs by Citigate Dewe Rogerson on behalf of Cordea Savills. Following the strong growth of the British property market over the...

IN BRIEF: Assetmaster offers dollar and euro.(Brief article)
April 17, 2006... William De Broe's Assetmaster Fund Company is preparing to launch dollar and euro share classes for two of the four funds in its multi- manager range. Investors in Assetmaster's Cautious Portfolio and International Portfolio funds, both...

Norwich launches UK Special Sits fund.
April 17, 2006... Norwich Union is to launch a UK Special Situations fund on May 22, subject to Financial Services Authority approval. The fund will be co- managed by Schroders' Richard Buxton and Andy Brough. Buxton, a large-company specialist, has managed...

Henderson changes multi-manager range to Nurs.
April 17, 2006... Henderson Global Investors has converted its multi-manager fund range to a non-Ucits retail scheme. It follows a similar move by Gartmore reported in last week's Fund Strategy (page 8). Henderson offers three multi-manager funds: the #71m...

Mixed response greets French contract U-turn.
April 17, 2006... Fund management groups are divided about the investment impact of the French government's decision to scrap the controversial contrat premiere embauche (first employment contract) last week. The French government decided to abandon the...

Gold price hike leaves experts divided on rush to invest.
April 17, 2006... The price of gold soared past $600 per ounce last week, its highest price in 25 years, highlighting the debate between optimists speculating that the $1,000 mark may be in the offing and bears who worry a steep retrenchment is likely. Gold...

TRENDS: Europe remains the place to invest.
April 17, 2006... With EU expansion helping to revive the manufacturing industry, and the euro gaining ground against other major currencies, the case for investing in Continental Europe is still compelling. Europe: investment area of opportunity or a spent...

STRATEGY: Playing the capital spending cycle.
April 17, 2006... At the half-way point in the capital expenditure cycle, companies still have a lot of cash to spend on expanding their business, creating investment opportunities across several sectors. An extended business cycle is under way, with...

Q&A: Nurs conversion brings advantage of flexibility.(Interview)
April 17, 2006... Bambos Hambi, head of MultiManager funds at Gartmore, answers questions from Frances Hughes. Q. The recently announced changes to your MultiManager range of funds involve amending the names of the funds, changing payment frequency and...