Fund Strategy articles from April 2007

Fund Strategy archives from April 2007

COMMENT: Peak of debate sheds light on main trends.
April 2, 2007... Last week's [SIC] Fund Strategy Investment Summit allowed participants to observe the world, literally and metaphorically, from a great height. At 2,000 metres above sea level the exclusive Swiss ski resort provided spectacular views and...

Taylor Young to widen range with launch of two Oeics.
April 2, 2007... Taylor Young Investment Management is to launch two open-ended funds. The Opportunistic and International Equity funds are expected to debut this week. The Opportunistic fund will be managed by Nicholas Rundle, while the International...

BAM seeks to distribute multi-asset funds in UK.
April 2, 2007... Baring Asset Management has applied for distributor status for three Dublin-domiciled funds of funds. The portfolios, launched as Qualifying Investor Funds in 2004 for the institutional market, use a multi-asset approach. Barings...

IN BRIEF: Credit Suisse hit by departures.(Brief article)
April 2, 2007... Fitch Ratings has placed Credit Suisse's asset manager rating on negative watch. The action applies to the firm's London-based investment management activities, but excludes its alternative asset and real estate management. Fitch says it has...

IN BRIEF: Close call to beat new VCT rules.(Brief article)
April 2, 2007... Close Ventures is seeking to increase the maximum subscription for shares on the Close Enterprise venture capital trust. It wants to raise the ceiling from #20m to #30m. The move is designed to accommodate increased investor demand, before the...

Kearney to co-head Credit Suisse multi-manager team.
April 2, 2007... Credit Suisse has announced the appointment of Aidan Kearney as co-head of its UK multi-manager team, alongside Graham Duce. Kearney will join on April 10, from his role as senior investment manager of the pooled fund service at Premier...

Sales of funds tumble by 60% from one year ago.
April 2, 2007... February's total net industry sales of investment funds were almost 60% down from February 2006, according to the latest statistics from the Investment Management Association. Total net industry sales were #973m in February this year,...

IN BRIEF: James Hay wraps up 13 more funds.(Brief article)
April 2, 2007... James Hay has added 13 portfolios from Aegon, Fidelity, M&G and Morley to its wrap platform, bringing the number of funds to 1,137. Seven of the funds are from Morley, including the Norwich UK Special Situations portfolio launched last year....

IN BRIEF: Cofunds appoints development head.(Brief article)
April 2, 2007... Cofunds has appointed Andy Fail as its head of product development. Fail is a fellow of the Institute of Actuaries and began his career in the actuarial department of Save and Prosper. He joined Scottish Equitable in 1999 as a sales actuary,...

Managers welcome FSA rule change.
April 2, 2007... The Financial Services Authority is to allow the launch and marketing of onshore funds of alternative investment funds to retail investors for the first time. FAIFs will be established under the existing non-Ucits retail scheme regime....

Henderson may offer global property shares.
April 2, 2007... C shares of the #52m Henderson Global Property Companies trust may be offered to investors following its interim results announcement this week. Launched in August 2006, the trust invests principally in listed property securities...

IN BRIEF: Ilott bows out from Bates.(Brief article)
April 2, 2007... Paul Ilott, who was head of communications at Bates Investment Services, left the firm at the end of March. Bates was acquired by The Money Portal in September 2003. It offers bespoke advice on financial planning, including investments,...

IN BRIEF: Management moves at Insight.(Brief article)
April 2, 2007... Douglas Ferrans, chief executive of Insight Investment Management is moving to the role of chairman. Abdallah Nauphal will be promoted from deputy chief executive to chief executive while retaining his position as chief investment officer....

Bull and bear clash in Europe debate.
April 2, 2007... Shamik Dhar, a director at Fathom Financial Consulting, is cautiously optimistic on the prospects for Continental Europe's economies and stockmarkets. With GDP growth strong in most eurozone countries during the fourth quarter of 2006,...

Economist forecasts "bumpy landing" for the global economy.
April 2, 2007... The global economy is set for a "bumpy landing" rather than a disorderly crash, says Stephanie Flanders, the economics editor for the BBC's Newsnight programme. Flanders says that several factors have characterised the benign economic...

IN BRIEF: Investors offered option to switch.(Brief article)
April 2, 2007... Investors in the #31m Partners fund, managed by Taube Hodson Stonex Partners, have been offered the option to switch their investment into Nils Taube's newly launched Smith & Williamson Taube Global fund. Most investors voted in favour of the...

State of world's energy supply sparks heated debate.
April 2, 2007... The world is already in an energy crisis, says George Orwel, a senior markets correspondent at Energy Intelligence Group in New York. A dwindling supply of oil reserves, insufficient investment into technologies to develop alternative...

Use of psychology in finance markets gains momentum.
April 2, 2007... The use of insights from psychology to understand how financial markets behave is gaining momentum. Indeed, Hersh Shefrin, professor of finance at Santa Clara University, California, says that behavioural finance will become a mainstream...

IN BRIEF: L&C structured products thrust.(Brief article)
April 2, 2007... London & Capital has established a new structured products division with the appointment of a specialised team. Adrian Cravchinsky and Robert Bell join from Poalim Asset Management, which is part of the Israeli bank, Hapoali. Over a period of...

TRENDS: Skill is key to greed and fear tactic.
April 2, 2007... Macro factors and good returns have prompted active managers to sideline benchmarks in favour of unconstrained stockpicking, but investors should be wary as change could reverse fortunes. As we enter the fifth year of the bull market, it is...

STRATEGY: Global economy defies us downturn.
April 2, 2007... The global economy has performed well, particularly emerging markets and the eurozone, but the central banks should be prepared to work harder if they want to hit low inflation targets. Overall, the global economy has continued to perform...

Q&A: Schroders puts weight behind asia pacific.(Interview)
April 2, 2007... Richard Sennitt, manager of the Schroder Far East Income fund, is questioned by Frances Hughes. Q: In December 2006 the Schroder Far East fund became the Schroder Far East Income fund. Its objective changed from seeking capital growth to...

OFF THE PEG: Uniform label.
April 2, 2007... The advent of the single currency prompted the sceptics to doubt its success, but it has matured and some European economies have thrived since conversion. But does a single policy suit every country? Vanessa Drucker investigates. When...

OFF THE PEG: Former currency unions.
April 2, 2007... The history of previous currency unions has not been promising. "Notwithstanding, when unions were tied to gold, the cost of terminating them was not very high," notes Geoffrey Allen Pigman, who teaches political economy at Bennington College...

OFF THE PEG: False currencies.
April 2, 2007... Imitation may be a sincere form of flattery. The euro is already fostering a crop of rival local currencies around the continent. It is still legal to use the French franc until 2012, and "a sense of outrage is prompting some small...

ANALYSIS: Collins Stewart spices up bond plot.
April 2, 2007... Bond funds have been going through a dull and depressing episode recently, but Collins Stewart is turning it into an interesting story by adding derivatives to the plot, reveals Mark Despres. Mark Despres of Collins Stewart has a top talent...

AFI: Equities voted top of asset classes.
April 2, 2007... The Adviser Fund Index panellists backed equities to be the best performer over the next 12 months, while the outlook for bonds, dogged by uncertainty, provoked a bearish response. All 15 of the Adviser Fund Index panellists responding to...

CHANNELS: Cavanagh's brief aims to enrich in long term.
April 2, 2007... Andrew Fay, chief executive of Cavanagh Financial Management, answers questions from Will Jackson. Q: What is the history of Cavanagh Financial Management? A: The business was set up in 1996 by myself, Simon Redgrove, our managing...

US equities appeal to Insinger again.
April 2, 2007... Having fallen out of love with American equities last year, Insinger de Beaufort argues that valuations are once more attractive enough for it to increase its exposure to the stocks.Insinger de Beaufort has added American equity exposure...

FOCUS: Aegon strengthens its equity record.
April 2, 2007... The improving performance of its equity funds for the second consecutive year has been a strong factor behind Aegon's decision to launch five UK retail portfolios. Adam Lewis reports. Aegon Asset Management has had a busy year. Since the...

Fund Manager's Diary: 12-18 March 2007.
April 2, 2007... Monday Mornings took on a new routine a couple of months ago with the birth of our second daughter, Niamh. No alarm clocks are required in our house. Leave the house by 6.30am and drive into the City. Markets look like we are in for...

COMMENT: Protectionist threat to global growth.
April 9, 2007... The past few days have seen mixed news on the world economy. The bad news emanates from America while good news originates in emerging markets. Probably the worst news is America's decision to impose tariffs on imports of "coated free...

Jourdan joins Noble in continuation of fund manager role.
April 9, 2007... Paul Jourdan, the head of UK equities at First State Investments, is to leave the group to join Noble Fund Managers. But Jourdan, who will remain at First State until he joins NFM on June 4, 2007, will manage both the funds that he currently...

Trusts raise #220m despite new tax restrictions.
April 9, 2007... Despite the restrictions imposed on venture capital trusts from the beginning of the 2006/7 tax year, VCTs managed to raise a modest sum during the last tax year. At the time of going to press, VCTs had raised a total of #220m in the...

IN BRIEF: AXA IM UK appoint new head.(Brief article)
April 9, 2007... Axa Investment Managers has appointed Martin Hall as the head of Axa IM UK. He will join the group in June from Fidelity International, where he was co-head of fixed income. Prior to this, he was head of institutional sales and marketing at...

IN BRIEF: Bryant takes over New Star portfolio.(Brief article)
April 9, 2007... New Star Investment Funds has appointed Clare Bryant to take over the New Star European Portfolio from Mark Harris, New Star's head of funds of funds. Bryant, who has been part of the fund of funds team since May 2002, will continue to work...

Threat of chapter 14 "put to bed" by new FSA update.
April 9, 2007... The Association of Investment Companies has welcomed the update on the investment entities listing review, released by the Financial Services Authority last week. The update follows FSA consultation paper 06/21, which sets out plans to...

Jupiter prepares to unveil European Income fund.
April 9, 2007... The Jupiter European Income fund is to be launched on May 8. Managed by Malcolm Millar, it will follow the same income strategy the group has developed on other funds. Millar, who managed the Jupiter Pan-European Growth Sicav from May...

IN BRIEF: Interest rates stay on hold.(Brief article)
April 9, 2007... The Bank of England's monetary policy committee has kept its interest rate on hold at 5.25%. The last increase was in January, when the MPC raised the rate by a quarter point. The European Central Bank will announce its next decision on the...

IN BRIEF: Morley hires new property manager.(Brief article)
April 9, 2007... Ian Gleeson is to head Morley's international multi-manager property services. He joins Morley from the National Pensions Reserve Fund of Ireland, where he was head of property. At Morley, he will work with the indirect investment team to...

Correction: Aegon Asset Management.(Correction notice)
April 9, 2007... The graphs in last week's Focus on Aegon Asset Management were incorrectly labelled. Aegon Ethical Equity is the group's best performing fund over three years with a return of 89.63% against a sector average of 63.19%. Aegon Technology is the...

M&G shuffles Japan and Europe teams.
April 9, 2007... M&G has appointed fund managers to its European Corporate Bond and Japan Smaller Companies funds. Last week Stefan Isaacs took over the #216m M&G European Corporate Bond fund and Max Godwin became co-manager of M&G's #50m Japan Smaller...

Aberdeen merges three portfolios to create Oeic.
April 9, 2007... Aberdeen has merged its Gilt Income unit trust with two former DWS portfolios - Corporate Bond Plus and Corporate Bond - to create the Aberdeen Corporate Bond fund. The Ucits III-enabled Oeic is able to invest in fixed interest...

Cartesian set to unveil hybrid long only fund with focus on the UK.
April 9, 2007... Cartesian Capital, the Edinburgh-based investment boutique founded in conjunction with Resolution Asset Management, is launching a UK-focused 130/30 fund later this year. The fund will be managed by Andrew Kelly and David Stevenson the...

Managers predict lukewarm reception for hedge funds.
April 9, 2007... The consultation paper on funds of alternative investment funds (FAIFs), published by the Financial Services Authority last month, is set to bring the debate surrounding hedge funds into the mainstream. As reported in Fund Strategy last...

TRENDS: False ideas swamp tactics debate.
April 9, 2007... As the continuing wrangle about the best strategy for multi-manager investing rages, the misconception regarding the fund of funds approach remains riddled with assumptions. Multi-manager investing has been around for some time, but still a...

STRATEGY: Subprime impact set to be muted.
April 9, 2007... The impact of problems in the American subprime mortgage market is the focus of speculation. However, weaker demand is likely to stimulate competitive prices and encourage sales. Attention remains firmly fixed on the problems in the...

Q&A: Threadneedle focuses on home economics.(Interview)
April 9, 2007... Don Jordison, Threadneedle director and co-manager of the UK Property Trust, talks to Frances Hughes. Q: Apart from the #35m seed money how much has been invested in the trust since the launch on February 19? A: About #4-5m. It is in...

LAND OF GIANTS: Big in the city.
April 9, 2007... The financials sector has been characterised by mergers and acquisitions, which reflects its importance in the global economy - and, as Simon Hildrey reports, if Barclays and ABN Amro merge, it will create the second largest bank in Europe. ...

LAND OF GIANTS: American mortgage woes.
April 9, 2007... The well-publicised problems among subprime mortgages in America, which are loans to borrowers with weak credit scores, have significance for both lenders and the wider economy. It is uncertain, however, what will be the full implications of...

ANALYSIS: Still growth left in asian markets.
April 9, 2007... With the popularity of Asian equities in recent years you might think valuations are stretched. However, says Alan Gibbs, manager of the Waverton Asia Pacific fund, this is not the case. Alan Gibbs of JO Hambro Investment Management has...

CHANNELS: Firm takes care to give good long-term advice.(Company overview)
April 9, 2007... Robert Elliot, the managing director of Care Asset Management, is questioned by Simon Hildrey. Q: When and why was Care Asset Management established? A: Care Asset Management was established in 1990 and became a limited company in...

AFI: Exposure to Japan hits performance.
April 9, 2007... With the rebalancing of the Adviser Fund Index fast approaching the AFI panellists get ready to decide whether portfolio recommendations warrant any changes for the coming six months. With the next rebalancing point of the Adviser Fund...

FoFs: Investec still finds niche positions.
April 9, 2007... Despite the increased attention over the past year, Philip Saunders, co- manager of Investec's Managed Growth fund, says the private equity sector still offers opportunities for investors. Philip Saunders, co-manager on Investec's Managed...

FOCUS: Young boutique takes on old mantle.
April 9, 2007... River & Mercantile was only launched last November but it aims to capitalise on the reputation of its established name, strong managers and a family-friendly ethos, writes Kira Nickerson. Black and white photographs of employees' children...

Fund Manager's Diary: 25-30 March 2007.
April 9, 2007... Sunday Take the train down to Gatwick to fly to Prague. Monday Our European Residential Property Fund holds two properties in Prague, which are in the process of construction, so I am often in Prague visiting our legal advisers, Linklaters...

COMMENT: Globalised labour is great benefit to all.
April 16, 2007... One of the most important but least discussed topics in understanding the world economy is the globalisation of labour. It is therefore welcome that the International Monetary Fund has included a chapter on the subject in its key...

Bedlam opens Cherry Picker in June.
April 16, 2007... Bedlam Asset Management will open its Cherry Picker investment trust for subscriptions in June. The fund will take an unconstrained approach to global equities, through a concentrated portfolio of 25-30 holdings. The firm will also carry...

Collins Stewart UK fund will exploit catalysts.
April 16, 2007... Collins Stewart is to launch a high conviction fund focusing on British companies with significant upside potential through the action of an identified catalyst. The Collins Stewart UK Catalyst fund, which is structured as a Dublin...

GIF Bric fund reopens as liquidity improves in its target markets.
April 16, 2007... HSBC Investments has reopened its $2.7bn (#1.3bn) GIF Bric Freestyle fund to investments. The fund was hard-closed in June last year to protect investment performance. However, according to Christian Deseglise, the fund manager, over the...

IN BRIEF: Psigma raises #108m at debut.(Brief article)
April 16, 2007... The Psigma Income fund has raised #108m in its three-week launch period. Managed by Bill Mott the fund targets 110% of the yield from the FTSE All-Share index. It will be run in the same way as the Credit Suisse Income fund, which Mott left in...

IN BRIEF: Insight closes three Oeics.(Brief article)
April 16, 2007... Insight has closed three of its Oeic funds. The Insight Global Bond fund, managed by Frank Burke, the Insight Foundation Income fund, managed by Danny Fox and the Insight Pan European Select Opportunities fund, run by Aidan Farrell, were all...

Morley to consider next step following death of Chris Phillips.
April 16, 2007... Morley Fund Management will start assessing its options for a new chief executive officer this week following the death of Chris Phillips on holiday. Phillips, who was on gardening leave after leaving his position as the CEO of the...

Jupiter proposes first US income fund.
April 16, 2007... Jupiter plans to create the first retail equity income fund investing in American equities, if unitholders of its #13m North American agree to proposals to reconstruct the fund. Last week the group announced it was to ask unitholders to...

Frostrow Capital acquires its first three clients.
April 16, 2007... Frostrow Capital, a provider of management services to investment companies, has acquired its first clients. The firm, approved by the Financial Services Authority in March and founded by Alastair Smith, will support three investment trusts...

IN BRIEF: Threadneedle hires Nepgen.(Brief article)
April 16, 2007... Threadneedle Investments has appointed Pauline Nepgen to its global equities team. She joins Threadneedle next month from Investec Asset Management, where she was a global equity portfolio manager and technology sector specialist. At...

IN BRIEF: Puhar to run real estate at Fidelity.(Brief article)
April 16, 2007... Fidelity has appointed Alison Puhar as its director of UK real estate. Puhar will initially drive new property acquisitions. As the business grows, she will take responsibility for running a number of funds, as well as building the UK team....

IMF forecasts strong global growth despite slight dip.
April 16, 2007... However, despite these downward revisions for America, the overall global GDP growth rate predictions remain at 4.9% for both 2007 and 2008. The reduction in expected American economic growth is offset by upward revisions in other major...

TRENDS: New powers increase the pressure.
April 16, 2007... Ucits III and non-Ucits retail schemes have widened the scope and flexibility for investors, but these powers are accompanied by greater complexity, so skill, rather than luck, is essential. Since the introduction of the European Union...

STRATEGY: Subprime cloud hides a silver lining.
April 16, 2007... Problems in the subprime market will continue to cloud the American economy but the Federal Reserve may relax monetary policy, which in turn will prompt investors to take more risks. Problems in the subprime mortgage market have prompted...

Q&A: T Rowe Price looks out for mispriced stocks.(Interview)
April 16, 2007... Niall Gallagher, portfolio manager of T Rowe Price, answers this week's questions from Frances Hughes. Q: The T Rowe Price European ex-UK Equity fund and the T Rowe Price Pan European Equity fund, which launched on March 1, were seeded by...

HARD TO DIGEST: Swallowed up.(Company overview)
April 16, 2007... Merger and acquisition activity has leapt, prompted by a huge appetite for cheap debt and the need for companies to become more focused. But does this activity create value for investors? Neal Underwood investigates. Barely a day goes...

HARD TO DIGEST: Taylor Woodrow/George Wimpey merger.
April 16, 2007... On March 26, 2007, housebuilding firms Taylor Woodrow and George Wimpey announced that they had agreed a merger to create Taylor Wimpey. The merged group will be Britain's largest housebuilder, with a combined market capitalisation of about...

ANALYSIS: Family values protect British Empire.
April 16, 2007... After great performance between 2004 and 2006 British Empire Securities is in the doldrums, but John Pennink, the fund manager, is confident about long-term performance strategy. A small press release from Alliance Trust caught my eye...

CHANNELS: Firm offers first port of call for tailored service.
April 16, 2007... Paul Stevens, investment manager of 1st Port Asset Management, is questioned by Adam Lewis. Q: How did 1st Port Asset Management get started? A: We were founded in April 2004 to provide discretionary management services to...

AFI: New rules alter selection powers.
April 16, 2007... Financial Express has revised the rules for the Adviser Fund Index portfolio recommendations by adding a ceiling to the weighting the panellists can give to any of their single fund choices.SU 10pt Nimrod Column Standfirst The 18 Adviser...

FoFs: HSBC curtails risks for Open Global.
April 16, 2007... An investment in managers who focus on absolute returns and the creation of a short-dated liquidity fund, is helping Nick Pothier, of the HSBC Open Global Return fund, to reduce risk.Concern about the future risk appetite of investors recently...

FOCUS: Strong player stays ahead of game.
April 16, 2007... Resolution Asset Management's boutiques are doing well - especially Argonaut - so the group is expanding with two more ventures, which are set to launch this year, writes Will Jackson. Resolution Asset Management has continued to expand...

Fund Manager's Diary: 2-8 April 2007.
April 16, 2007... Monday Although it is a shorter week, eight company meetings are scheduled, which I realise need preparation. Before all that though, the day starts with a coffee and muffin as I digest corporate newsflow from 7am. One of our holdings has...

COMMENT: America continues to lose top position.
April 23, 2007... The increasingly popular idea that the world is "decoupling" from America is misleading. It is not that the integration of the world economy is lessening in any way. The real trend is for a decline in the relative importance of America in the...

Witan welcomes Carrousel Capital.
April 23, 2007... James Budden, marketing director for Witan, says he welcomes the arrival of Carrousel Capital as an investor in the #1.5bn Witan investment trust. His comments follow the publication of the Wins Investment Trust Research report for April,...

Association to ask members about sector launch.
April 23, 2007... The Investment Management Association is to once again consult members on the possible creation of an absolute return sector. The news follows the announcement that Financial Express has created its own absolute return peer group. A...

Scottish Widows hires manager for US Oeics.
April 23, 2007... Scottish Widows Investment Partnership has changed the manager on five of its American retail Oeics, following the departure of Patricia Wilson. Ian Tabberer has taken on the funds, which represent a combined #150m in assets under management,...

IN BRIEF: Fund manager for Threadneedle.(Brief article)
April 23, 2007... Threadneedle Investments has appointed Richard House as a fund manager in its emerging markets fixed income team. He reports to Paul Murray- John, who heads the group. Prior to joining the firm, House was a portfolio manager and trader at...